Agricultural Credit Enhancement (ACE) II Monthly Report No. 1, July 2015

in Afghanistan. The program aims to enhance agricultural credit and support the transition of the Agriculture Development Fund (ADF) to a more sustainable and efficient institution. The project is funded by the United States Agency for International Development (USAID). The ACE-II program is divided into three components: Component 1, Component 2, and Component 3. Component 1 focuses on supporting the ADF's transition by providing technical assistance and advisory support to ADF management and operating units. This includes the induction of new members of the High Council and the assessment of the organizational structure and performance of ADF. Component 2 aims to support the entry of other financial institutions into agricultural financing by establishing an incentive-based grants program through the ADF. The program will provide grants to financial institutions to develop and test new and innovative ways to facilitate financial services to target groups and/or provide and finance equipment or services that support agricultural finance. Component 3 focuses on monitoring, evaluation, and advocacy. The project is developing a monitoring and evaluation plan, which is a critical tool for planning, managing, and documenting progress towards ACE-II program's objectives. The plan must be submitted to USAID within 90 calendar days of the award's effective date. The project has made significant progress in its first month of implementation. The office and guesthouse have been set up, and the local program staff has been onboarded. The team has made substantial progress in technical activities, including the submission of four out of five contractual deliverables in excess of 60 days before the deadline. The project has also conducted a gender assessment, which aimed to answer three basic questions: what are the key issues affecting women's ability to access financial services, what activities have been undertaken by ADF, MAIL, USAID, and other financial institutions to help women overcome these hurdles, and what activities should be implemented by ACE-II to have a positive impact on the inclusion of women. The findings of the assessment will shed light on the challenges, ongoing efforts to overcome them, and the remaining gap to be filled by ACE-II. The project has also designed three types of posters that will be printed and placed at the Kabul International Airport to promote the program and its objectives. The posters will be placed in the VIP lounge and in the luggage collection area. Overall, the ACE-II program is making significant progress in its first month of implementation, and the project is on track to achieve its objectives. The program's focus on supporting the ADF's transition, promoting the entry of other financial institutions into agricultural financing, and developing a robust monitoring and evaluation capability will contribute to the development of the agricultural sector in Afghanistan.