Position
Islamic Finance Specialist
Period of Performance on/about (from – to)
February 5, 2024
April 15, 2024
Maximum Level of Effort
40 days
Base of Operations
Remote with travel to Dubai, as allowed
Position Reports to
Deputy Chief of Party-Technical/Chief of Party
1. Project Background
DAI is implementing the USAID funded Afghanistan Competitiveness of Export-oriented Business Activity (ACEBA) Program, originally designed to support export-oriented businesses through a combination of technical assistance and grants that would improve access to finance and facilitate exports. ACEBA’s new priority is livelihoods support, with a focus on domestic production activities and humanitarian goods and services that will sustain households. In doing so, ACEBA retains a market focus and supports activities that improve market performance. ACEBA focuses on the carpet, cashmere, and saffron value chains in recognition of their potential for significant employment (especially for women).
The collapse of the Government of the Islamic Republic of Afghanistan in August 2021 resulted in an abrupt failure of the Afghan banking system, with liquidity drying up and causing the economy to descend into an immediate recession. Although the situation has stabilized since then, businesses continue to have difficulty financing their operations and paying salaries.
Both commercial and state banks in Afghanistan can only provide loans based on Islamic financial principles, meaning they do not involve the charge of interest (Riba). When applying for loans or repaying, customers must comply with Sharia principles and rules.
Afghan banks have resumed financing over the past year, but they are only providing loans to small and medium enterprises (SMEs). They have not extended credit to corporate entities or micro enterprises until now. The total amount of credit issued to SMEs so far is only USD 5 million. No conventional loan has been issued since August 2021. All the banks have developed Sharia-compliant products for lending, but they are currently facing challenges with their existing portfolios. The Taliban has given them a two-year deadline to transition into fully-fledged Islamic Banking, which many banks are struggling to implement. Until this process is complete, commercial lending is likely to remain moribund.
To address this issue, ACEBA intends to stabilize the banking system and increase liquidity by supporting commercial banks to convert their existing interest-based commercial loan products to Islamic lending.
2. Position Purpose
The objective of the Islamic Finance Specialist position is to provide technical assistance and capacity building to Afghanistan commercial banks to improve their financial performance, governance, and compliance with international standards and regulations for Islamic banking.
3. Key Duties and Responsibilities
Conduct a comprehensive assessment of the current situation and challenges faced by Afghanistan commercial banks in the process of conversion from conventional banking to Islamic banking.
Develop a tailored action plan for each bank, based on the assessment results, to address the identified gaps and weaknesses, and to enhance their strengths and opportunities.
Provide training and coaching to the bank staff and management on various topics, such as Islamic financial analysis, credit risk, operational risk, internal audit, anti-money laundering, corporate governance, and customer relationship managements.
Support the implementation of the action plan that has been submitted to Afghanistan Central Bank (DAB), by providing regular monitoring, feedback, and guidance to the bank staff and management, and by facilitating coordination and communication among the relevant stakeholders.
Analyze the impact and outcomes of the technical assistance and capacity building, by measuring the changes in the key performance indicators, such as profitability, asset quality, capital adequacy, liquidity, efficiency, and customer satisfaction.
Assess the potential loss of correspondent banking relationships and a risk of being classified by the Financial Action Task Force (FATF) due to the sanctions and the political division on how to deal with the Taliban regime.
4. Deliverables
Initial assessment report.
Action plan regarding the restoration and stabilization of the banking system and the payment infrastructure.
Recommendations for technical assistance and capacity building to the commercial banks to improve their financial performance, governance, risk management, compliance, and customer service in Islamic banking.
Recommendations on policy and procedure development for conversion of conventional banking to Islamic banking.
Recommendations for new & existing product development for Islamic banking and developing marketing strategy and plan for its sales.
Recommendations for training and capacity building of Islamic banking staff, specific certificates in Islamic Banking areas.
Recommendations for core banking software customization.
5. Qualifications
Master’s degree in finance or other relevant field.
Minimum five years or more experience in Islamic finance, experience working in developing countries preferred.
Equal Employment Opportunity
All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, disability, age, or status as a protected veteran.
DAI and its employees are committed to confronting discrimination in all forms, nurturing respect for our interpersonal relationships, and holding ourselves accountable for positive change within the company and in the communities, cultures, and countries in which we live and work. DAI is committed to attracting and retaining the best employees from all races, ethnicities, and backgrounds in our continued effort to become a better development partner.
DAI upholds the highest ethical standards. We are committed to the prevention of sexual exploitation, abuse, and harassment as well as other ethical breaches. All our positions are therefore subject to stringent vetting and reference checks.
DAI Organization and Values
DAI is a global development company with corporate offices in the United States, the United Kingdom, EU, Nigeria, Pakistan, and Palestine and project operations worldwide. We tackle fundamental social and economic development problems caused by inefficient markets, ineffective governance, and instability. DAI works on the frontlines of global development. Transforming ideas into action—action into impact. We are committed to shaping a more livable world.
DAI and its employees are committed to confronting racism and holding ourselves accountable for positive change within the company and in the communities, cultures, and countries in which we live and work. DAI is committed to attracting and retaining the best employees from all races and backgrounds in our continued effort to become a better development partner. DAI upholds the highest ethical standards. We are committed to the prevention of sexual exploitation, abuse, and harassment as well as other ethical breaches. All of our positions are therefore subject to stringent vetting and reference checks.
DAI is an equal opportunity/affirmative action employer with a commitment to diversity. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran.
To apply for this job please visit phf.tbe.taleo.net.