SME Client Support Afghanistan LLC (“SCSA”) is a consulting and service company registered with the General Directorate of Central Business Registry & Intellectual Property with its headquarters in Kabul, Afghanistan. SCSA is fully owned by ACGF - Afghan Credit Guarantee Foundation (“ACGF”), a foundation with legal incorporation in Cologne. ACGF is a credit guarantee fund with the mission to improve access to finance for Afghanistan’s micro, small, and medium-sized enterprises (“MSMEs”) by sharing the credit risk of the Afghan partner financial institutions (“PIs”) and by improving their MSME lending capacity with technical assistance (“TA”). ACGF was founded in 2014 by DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH and by the German Ministry of Economic Cooperation and Development. Governed by a service contract concluded between ACGF and SCSA. SCSA provides a broad range of ancillary services in the context of ACGF’s credit guarantee and technical assistance operations. SCSA is a consulting company, not a financial institution. It neither provides any financial services nor does it have contractual relationships with the Afghan PIs. SCSA solely acts as a service provider to ACGF by carrying out a range of various services, e.g., providing ongoing technical assistance to PIs (e.g., training-on-the-job and coaching of SME credit staff) or providing support services for the credit guarantee appraisal and guarantee claim appraisal.
Besides the above-mentioned credit guarantees, ACGF has started two projects: MSME Access to Finance for Livelihoods in Afghanistan (MALA), funded by the European Union (EU) and supporting the implementation of a Matching Grants Programme for MSMEs in Afghanistan; and Empowering Microfinance and Enterprises for Resilience and Growth (EMERGe), funded by World Bank and aiming to build sustainable solutions for developing both the demand for and supply of finance for micro and small enterprises in Afghanistan, prioritizing women's financial inclusion.
Under both projects, TA is provided to Afghan PIs to enhance their capacity for providing lending products that respond to MSMEs' financing needs and are compliant with the regulatory environment; as well as to support them as they transition operationally to the Islamic finance model and the provision of Shariah-compliant products.