EU-Backed Initiative Establishes 2,500 Sharia-Compliant Savings and Loan Funds in Afghanistan
The United Nations Development Programme (UNDP) has expressed its gratitude for the European Union’s cooperation and support in Afghanistan on the occasion of Europe Day. This support has led to the creation of 2,500 Sharia-compliant Rotating Savings and Credit Associations (ROSCAs).
According to published information, these funds have more than 40,000 members and have mobilized approximately 490,000 euros in savings. The purpose behind establishing these mechanisms is to strengthen financial stability among families and promote a savings culture at the community level.
These funds are designed to comply with Islamic financial principles and provide residents, particularly families with limited access to banking services, with better means to manage financial resources.
Amid Afghanistan’s widespread economic challenges and the severe pressures faced by the country’s banking system, such initiatives can play a crucial role in enhancing households’ economic resilience. Experts emphasize that continued international community support remains vital to preventing the expansion of poverty and economic instability in the country.
