Agricultural Development Fund (ADF)
The Agricultural Development Fund (ADF) is a standalone institution constituted as a government development fund operating under the leadership of the Ministry of Agriculture, Irrigation, and Livestock (MAIL) of the Government of the Islamic Republic of Afghanistan (GIRoA).
The principal function of the ADF is to catalyze delivery of finance and related non-finance services to commercial farmers and agribusiness entrepreneurs through a variety of intermediaries as well as direct lending, in an unprecedented effort to revolutionize Afghan agriculture.
Since its inception, the ADF has approved almost AFN 12.3 Billion in loans and disbursed funds of more than AFN 8.9 Billion directly benefiting 53,413 farmers and agribusinesses in Afghanistan. The ADF has a solid governance structure, Sharia Advisory Board and Islamic product offering, prudent operational policies and systems, professionally trained staff and an established footprint to serving clients in 32 provinces across the country.
Today, the ADF is the leading provider of finance to Afghanistan’s agriculture sector with a head office in Kabul, four regional offices in (Balkh, Herat, Kandahar and Nangarhar), and two satellite offices: one at MAIL and one in Bamyan. The ADF has a current staffing structure of 75 employees.
The ADF’s mission is to facilitate agricultural development and contribute to Afghanistan’s economy by providing finance to commercial farmers and agribusiness entrepreneurs.
In pursuing its mission, the ADF supports the MAIL’s broader goals of restoring Afghanistan licit agricultural economy and contributing to the growth of the rural economies. Investing in agriculture is critical as the sector accounts for a quarter of the Afghan economy and plays an important role in the livelihoods of approximately 76% of the population who live in rural areas.
A full 50% of all households in the country derive at least part of their income from agriculture. However, a lack of credit continues to constrain the Afghan agriculture sector nationally.
As an Afghan government-owned fund, ADF has a unique position in the hierarchy of agricultural and agribusiness lending in Afghanistan.
The Fund’s primary objectives are:
1. To provide effective and responsible short, medium and long-term financing to the agricultural sector, thereby supporting sector growth and development;
2. To lead as an apex agriculture financing institution, leveraging its own funds, to increase its outreach and strengthen the agriculture financing value chain; and
3. To strengthen agricultural value chains through technical support and advisory services.