Agricultural Credit Enhancement II (ACE-II) Program Quarterly Report No. 3

The program has made significant progress in the fourth quarter of the fiscal year, achieving notable milestones in the areas of ADF management performance, strategic and business planning, and operational assessments. A comprehensive review of ADF management performance was conducted by a short-term consultant, Mr. Robert Dressen, who assessed the executive team's capacity and identified areas for improvement. The review resulted in specific recommendations for strengthening and improving ADF's management performance. The ADF Five-Year Strategic Plan and Business Plan were drafted with the joint efforts of Mr. Robert Dressen, ACE-II DCOP Grants Norris, and the ADF technical team. The first draft of the updated plan will be discussed, agreed upon, and finalized with the ADF management prior to presentation to the ADF High Council in January 2016. An assessment of ADF operations was also completed by Ms. Michele Breton, a short-term consultant, who reviewed various operational areas, including business development, credit and risk management, finance, operations, and administration. The findings and recommendations from the review will be documented and a STTA final report will be submitted in January 2016. In addition to these achievements, the ACE-II program has also made progress in other areas, including the approval of the Grants Manual, the preparation of the Annual Program Statement (APS) and Request for Applications (RFA), and the facilitation of business-to-business meetings during the Agriculture Fair in Kabul. The program has also supported the Economic Conference in Kandahar, sponsored exhibition booths for potential ADF agribusinesses, and facilitated presentations of ADF loan products to value chain actors. The ACE-II program has also hosted two "Solution Committee" meetings to prepare for the next Agriculture Technical Working Group workshop. Representatives from five financial institutions attended the meetings, where they reviewed key agriculture credit constraints and prioritized major constraints to be proposed to the ACTWG for solution. Furthermore, the M&E unit team completed the data collection and analysis of baseline data on ACE-II performance indicators. The baseline survey targeted a representative sample of 488 beneficiary farmers who received loans for agricultural purposes through various cooperatives and companies in different provinces. The survey aimed to define benchmarks to compare data and measure changes in farmers' and agribusinesses' productivity, income, sales, exports, and expansion of business activities. The ACE-II program has made significant progress in the fourth quarter of the fiscal year, achieving notable milestones in various areas. The program's efforts to improve agricultural credit in Afghanistan are expected to have a positive impact on the country's agricultural sector and contribute to the overall development of the economy.