On April 16, 2025, the team of the Afghanistan Microfinance Association (AMA) held a constructive meeting with representatives from the United Nations Capital Development Fund (UNCDF) and TAGHEER.
TAGHEER, a local consulting firm, has been commissioned by UNCDF to conduct a comprehensive assessment across six provinces (Kabul, Balkh, Kandahar, Herat, Nangarhar, and Kunduz). The objective of the assessment is to identify critical behavioral, socio-economic, technological, educational, and regulatory barriers that hinder the adoption of digital payments among users of financial services.
The meeting focused on the strategic transition of the Microfinance Program from its existing cash based operations to a more efficient, secure, and inclusive digital payment ecosystem. Participants explored the potential benefits of digitalization, such as enhanced transparency, reduced operational costs, and broader financial inclusion. At the same time, they addressed key behavioral patterns and structural challenges that could slow down successful implementation, including limited digital literacy, infrastructure gaps, and resistance to change.
AMA expressed its willingness to collaborate with development partners and donors to strengthen digital awareness initiatives targeting microfinance clients. The discussion emphasized the urgent need for tailored technological support and capacity building programs for Microfinance Institutions (MFIs), particularly in terms of infrastructure upgrades and staff training.
The meeting concluded with a mutual understanding that UNCDF will share the findings and recommendations from the assessment with all relevant stakeholders, including AMA, to inform future interventions and policy directions in support of digital financial inclusion.
