About OXUS Afghanistan

About us

17

Years of Experience

Since 2007

About us:

Created in 2007 with funding from MISFA, OXUS Afghanistan was able to build on ACTED’s experience and past programs in the country, in particular a micro-loan initiative to provide farmers with seeds and tools for sowing. OXUS Afghanistan operates 33 branches across the country and is today one of the country’s biggest microfinance providers in portfolio terms. Due to the low penetration of commercial banks in rural areas and the lack of microfinance institutions (MFIs), Afghanistan is an extremely promising market. With a population of 40m people and a growing economy, many micro entrepreneurs and small and medium sized enterprises are in need of funding and investment.

Vision

OXUS Afghanistan is a transparent and responsible enterprise engaged in providing financial services to the working poor and the under banked in Afghanistan. OXUS is dedicated to build teams of recognized professionals, create and provide the most efficient microfinance services and improve the sustainable livelihoods of its customers.

Mission

To improve the sustainable livelihoods of our customers and to be the microfinance organization of reference in Afghanistan.

Transformation of OXUS Afghanistan from Conventional to Islamic Microfinance:

OXUS Afghanistan has been a prominent player in the microfinance sector, known for its commitment to financial inclusion. However, the landscape shifted dramatically after August 15, 2021, when the new regime came into power. The Islamic Emirate of Afghanistan issued a directive to all microfinance institutions, prohibiting the collection of interest from clients in accordance with Islamic law. This change led OXUS Afghanistan to immediately halt its conventional financing activities as the organization worked to comply with the new regulations.

In line with its social responsibility, OXUS Afghanistan made the decision to continue supporting its clients by providing interest-free loans. These loans, known as Business Assistance Loans (BAIL), were designed to keep money circulating in the market and support businesses during a period of uncertainty. A total of 57 million AFN was disbursed to 1,749 clients, all of which was successfully recovered within a year.

During this transition, OXUS Afghanistan began developing Islamic financing products to align with the principles of Shariah. The first of these products was Murabaha Financing, which was crafted in consultation with the Academy of Ulama of the Islamic Emirate of Afghanistan. The product underwent rigorous review and modifications based on the Academy’s recommendations. Subsequently, the Academy also provided a framework for further Islamic financial products.

In August 2022, after receiving endorsements from the Academy and approval from the Supreme Court, OXUS Afghanistan officially launched its Murabaha Financing. Since then, OXUS has developed seven different products under the umbrella of Murabaha, serving a wide range of client needs. Additionally, OXUS offers an Ijara product, further expanding its suite of Shariah-compliant financial services.

Today, OXUS Afghanistan manages a portfolio of 747 million AFN in new Outstanding Loan Balance (OLB) with 13,800 clients, alongside an old OLB of 299 million AFN with 26,000 clients. The transformation of OXUS from conventional to Islamic microfinance underscores its commitment to ethical financial practices and its dedication to empowering Afghan communities through Shariah-compliant solutions.