Creditinfo Group, a leading global credit information and fintech services provider, announced on Wednesday that it will enter into a strategic partnership with Afghan Credit Guarantee Foundation (ACGF).
The partnership will develop a Credit Risk Scorecard aimed at small-to-medium enterprises (SMEs) in Afghanistan.
Being the first small-to-medium enterprise credit scorecard to be developed for the Afghanistan market, it is expected to not only increase profitable lending to the market, but also provide a range of societal benefits such as increased employment.
Creditinfo, a global supplier of credit bureaus and credit risk solutions, has been active in Afghanistan since 2013. Established in 1997, it is headquartered in Reykjavík, Iceland.
ACGF was established in 2014, after a decade of strong performance by its institutional predecessor Credit Guarantee Facility for Afghanistan. It is a charitable foundation based in Cologne, Germany.
The partnership between the two will lead to an innovative method for assessing the credit risk of small-to-medium enterprises granting credit, according to a company statement.
“Our unique insight into the Afghan credit market, combined with our previous work with the Central Bank of Afghanistan, will help in creating a robust and reliable measure of SME credit worthiness in the country,” said Benjamin Riley, Senior Global Consultant at Creditinfo.
“This will have a significant positive impact on the national economy, by opening up access to more affordable and stable credit to SMEs,” Benjamin Riley continued.
“Globally, SMEs are the driving force behind economic growth, generating employment
opportunities and wealth. However, access to affordable and stable credit is a key factor in the success of the sector,” Bernd Leidner, Chairman of Management Board at ACGF, added.
“Afghanistan is no different in this respect. For years, we have been dedicated to opening up financial access to Afghan businesses. Our next initiative, alongside our trusted partner Creditinfo, will ensure we’re providing the local market with the required tools, consultancy and advice to not just survive, but thrive.”
Earlier this year, Creditinfo also announced that it was set to open a new regional hub in Muscat, after its partnership with the Central Bank of Oman.
