Loan Fuels Business Growth Spurt Ahmad Ramin’s new job, at a leading motorcycle assembly factory in Herat, illustrates the growing link between business loans, productivity, sales and profit in Afghanistan. USAID’s Financial Access for Investing in the Development of Afghanistan project has been supporting companies like Shahab Motorcycle Montage and Packing, Mr. Ramin’s employer, to develop the link. A $1.3-million bank loan allowed Shahab to import parts from China and assemble the motorcycles quicker than ever before. The reduced turnaround time resulted in improved productivity, a 25 per cent increase in sales and the need to hire more staff. It was a lesson in how a viable loan to a sustainable business can result in jobs creation. The growth spurt comes seven years after Shahab started in business with limited access to capital and little knowledge of how to upscale. But several roundtables held in Herat with USAID support have led to increased awareness about credit and loan products for small businesses. Sometimes, the roundtables even served as matchmaking events for banks and small ventures to get together and do business.
Posted on: Tue, 15 Jul 2014 08:41:32 +0000
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