Design phase complete

Some personal reflections on the last day of the ABIF design phase...

It has been an intense and extremely interesting experience bringing ABIF from a few pages of draft terms of reference to a fully designed project ready to go in just 10 weeks. Since starting work at the end of March, we have come a long way in terms of developing and piecing together the DFID Business Case, the project strategy, the sector selection and market analysis, the investment strategy, the project operations, the marketing strategy, the monitoring and evaluation framework, a workplan and a budget. And on top of that, I think that we have come up with a new way to manage a challenge fund that could significantly enhance ABIF's success. No doubt we will learn and refine as we go along, but I think that we can be reasonably satisfied with what we have achieved so far.

The good news is that because of the clarity of the original objectives DFID set for this fund, we have been able to put together a project design where each element is logically aligned in order to achieve those objectives. When all is said and done, the core purpose of ABIF is very simple; we are here to incentivise investment that will make money for the project sponsors, change the way that people do business with one another and increase the incomes of poor people. A correspondingly straightforward project design around our core objective of contributing to accelerated and inclusive growth means that we have the solid foundations necessary for the implementation phase. The result (I hope) is elegant simplicity!

What has particularly surprised me during the design phase is the evident level of demand for ABIF. I guess that it is easy to get carried away, of course there is demand for grant funds. But even when we strip away investment projects that are just about making rich people richer, there is still a promising pipeline of ideas for projects that can deliver the kind of  market changes and benefits to the poor of Afghanistan that we have designed ABIF to achieve. With a bit of guidance and encouragement, these projects can get off the drawing board with the help of DFID funds used to offset the risk that stands in the way of investment.

It is always dangerous to make predictions, but I wouldn't be at all surprised if we are able to disburse the funds much faster and achieve much greater impact than anyone envisaged at the time that the initial project outline was developed.

I have lived and worked in Afghanistan for almost 5 years out of the last 10 years. Over that period I have seen many good things happen, but early optimisim often turned into disappointment as extravagant promises of progress were unfulfilled, claims of achievements did not chime with ordinary people, or money was invested in Dubai real estate rather than the future of the country.

With 2014 on the horizon, we are entering a particularly tricky period of significant change and uncertainty. Afghanistan remains largely unprepared for the future that is set out on paper; there are systemic weaknesses in almost every direction you look (economic, political and security). There has been tangible progress but it is fragile and could easily be reversed. Afghan colleagues are hopeful, but nervous about what the future holds. But what strikes me most is that despite the potential of the country and 10 years of reconstruction efforts, poverty remains widespread, particularly in rural areas. The reality is that millions of Afghans still live in the most desperate of circumstances for no good reason at all. This situation has to change.

Afghanistan is a complex environment and there is no single or easy solution, but I am absolutely convinced that ABIF can help to make some difference to the lives of poor people in Afghanistan. The implementation phase is going to be challenging and hopefully rewarding, I look forward to it very much.



If it is my place to do so, I would like to thank everyone who has been involved in the ABIF design phase; particularly the core team of Robert Smith (who worked on the challenge fund operations), Sarah Gray (who worked on sector selection and market analysis), Tamim Ahmadyar (who provided administrative support throughout) and Edriss Raha (who has introduced us to many of the project sponsors with whom we could be working in the future). Simon Foxwell and Frankie Whitwell from Landell Mills have been extremely supportive, providing constructive strategic advice and quality assurance. Additional significant contributions came from our consortium partners ITAD (M&E) and ARG (marketing). Finally, a big acknowledgement is due to the DFID Afghanistan team. Our primary contacts there were Elyas Hashemi and Doreen Broska; their feedback has been invaluable and it has been a personal and professional pleasure to work with them.