Supporting Microfinance Merger in Afghanistan
The First Microfinance Bank of Afghanistan (FMFB-A), a commercial bank serving primarily urban clients, contracted Banyan Global to assist in its merger with the Afghanistan Rural Microcredit Program (ARMP), established by the Aga Khan Development Network in 2003 to serve rural clients. Banyan Global supported the development of two operational plans that addressed the staffing, organizational structure, products, and other issues related to the cessation of ARMP activities as a project and the transfer of its portfolio and staff to FMFB-A. Banyan Global held focus groups and individual meetings with all stakeholders (including shareholders, management, and staff) and developed the FMFB-A Expansion Plan and the ARMP Phase Out Plan, which articulated the timeline and step-by-step process involved in the de facto merger. Banyan Global also served as a mediator, helping to document the voices of all staff involved in the process while supporting the overall aim of the shareholders and management.