Agricultural Credit Enhancement Phase II (ACE II) Program Quarterly Report Q2 / 2015

The program is sponsored by the United States Agency for International Development (USAID) and implemented by Development Alternatives, Inc. (DAI). The report highlights the program's objectives, progress, and challenges. The ACE II program aims to ensure the long-term sustainability of the Agricultural Development Fund (ADF), a financial institution providing credit to the agriculture sector in Afghanistan. The program will assume an advisory role to the ADF, focusing on three programmatic areas: supporting the launch of an independent and effectively overseen ADF, encouraging financial intermediaries to enter into agriculture-related finance, and providing a point for learning, convening, and advocacy. The program's objectives are to support the ADF in transitioning to a sustainable agricultural development finance institution, encourage financial intermediaries to enter into agriculture-related finance, and provide a point for learning, convening, and advocacy. The program will implement three discrete components: Component 1, Support to the Transition to an Independent Agriculture Financing Institution; Component 2, Support the Entry of Other Financial Intermediaries into Agriculture Finance; and Component 3, Monitoring and Evaluation, Learning and Advocacy. During the reporting period, no technical activities had taken place due to the contract being signed 7 days before the end of the reporting period. However, the focus was on mobilizing the startup team, which consisted of Chief of Party Juan Estrada-Valle and Technical Startup Advisor Flouran Wali. The team arrived in Kabul on June 30, and prior to their arrival, they communicated with the ADF and identified the office space to be used by the project. The team also finalized the procurement of IT equipment, which was expected to arrive within 5 weeks. The startup team encountered challenges in initiating technical activities due to the time required to process Afghan visas, estimated at 3-4 weeks. As a result, the team had to travel with tourist visas, which would eventually require them to travel to Dubai to obtain work visas. Despite these challenges, the team was committed to initiating technical activities as soon as possible.