The objective of this case study is todocument an example of the successful design andimplementation of housing micronance (HMF) products byanalyzing the approach taken by the First Micronance Bank ofAfghanistan (FMFB-A) from 2009 to 2013. This report aims toencourage other lenders to follow suit and offerhousing-related loans to low-income earners. It is part ofIFC’s MENA Micronance Knowledge Management project, whichaims to raise awareness among micronanceinstitutions (MFIs)about the importance of risk management, productdevelopment, and transformation. FMFB-A was established in2003 with the mission to reduce poverty and promote nancialinclusion by providing its clients with access to nancialservices. Shareholders of FMFB-A are the Aga Khan Agency forMicronance (AKAM), Aga Khan Foundation USA, the GermanDevelopment Bank (KfW), and the International FinanceCorporation (IFC). FMFB-A has a nation-widepresence inAfghanistan and serves over 53,000 clients with anoutstanding portfolio of 64.5 million dollars. Housing nanceaccounts for about 17 percent of its total portfolio.FMFB-Ais currently the only MFI in Afghanistan that offers ahousing micronance product. FMFB-A implemented a rigorous,albeit exible, approach to the roll-out of its HMF productsin Afghanistan. The idea to develop an HMF product at FMFB-Astarted in 2007 as a response to client demand. Its aim hasbeen to increase access to housing micronance forAfghanistan’s low-income households in urban and ruralareas. It also sought to improve the quality of housing forthis segment by offering construction technical assistance(CTA) services.
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