February 2016—Financial constraints and a lack of modern machinery put an Afghan business in jeopardy, but all was not lost.

Haji Hossein Payman established the Etimad Tailoring Co. and retail store in 2009, which produces suits, jeans, T-shirts and women’s dresses. He uses the best brands and highest quality products to win business and compete with foreign products available in the Afghanistan market.

Despite strong demand for his products, company operations were threatened with monetary shortfalls and out-of-date equipment. To address the problem, Payman applied for a loan from USAID’s Financial Access for Investing in the Development of Afghanistan program to help his business recover and grow.

In February 2013, the loan was approved, saving Payman’s Kabul clothing business and allowing him to expand into selling jewelry.

USAID helped the company develop a concept note and worked with the First Microfinance Bank in Afghanistan. Etimad Tailoring Co. was ultimately approved for a $100,000 loan for 18 months.

“After receiving the loan,” Payman said, “my company’s production, sales and investment level increased up to 30 percent. As a result, I have opened a new retail store and hired three new employees to run the store.”

After his clothing business successfully rebounded, Payman was confident enough to open a new jewelry store in the same market where his retail store is located. He also created nine new jobs in Kabul.

“Our products are well-recognized in the local markets and are sold in the bazaars, even at a higher price than the foreign products,” says Payman.

The $108 million, five-year financial access project is designed to build a sustainable, diverse and inclusive financial sector to meet the needs of micro, small and medium enterprises throughout the country. To date, the program, which began in 2011, has conducted 280 trainings for 2,500 financial sector employees, including 1,200 supervisors from 31 financial institutions.

LINKS

Follow @USAIDAfghan, on Facebook, on Flickr, on YouTube