Community-Based Savings Groups (CBSGs) and Cluster Efficiency, Sustainability and Future Growth

1. Background and Context
For more than twenty years, the program has supported the establishment of Community-Based Savings Groups (CBSGs) as an informal, community-managed financial inclusion system serving vulnerable households. These groups mobilize small, regular savings and provide interest-free loans to members to support both livelihood activities and urgent social needs such as health expenses, emergencies, and major life events.
Currently, approximately 8,200 CBSGs and 500 Clusters operate across multiple regions. These structures function as revolving financial systems that mobilize savings, circulate capital, and support micro-enterprise development. Loan sizes typically range between AFN 10,000 and AFN 40,000, with an average loan cycle of six months. Once CBSGs reach maturity, they are grouped into Cluster structures that receive capacity-building and seed capital to serve as larger revolving funds for member groups.
Despite the scale and longevity of the system, the overall financial footprint, economic contribution, sustainability, and efficiency of this ecosystem have not yet been comprehensively measured. Financial records remain primarily paper-based, making it difficult to analyse performance, aggregate portfolio data, or communicate the value of the system to potential investors and donors.
This assessment is therefore intended to generate the first comprehensive evidence base to support strategic decision-making, system strengthening, digital transformation, and future investment.

2. Purpose of the Assignment
The assignment aims to generate credible and rigorous evidence about the performance, impact, and future potential of the CBSG and Cluster ecosystem. The findings will guide program improvements, support digital transformation, and strengthen the investment case for scaling the model.
The service provider is expected to deliver a comprehensive analysis that explains not only how the system functions today but also how it can evolve into a stronger and more sustainable community financial ecosystem.

3. Scope of Work
The service provider will design and implement a statistically representative mixed-methods assessment covering CBSGs and Clusters across Badakhshan, Takhar, Kunduz, Baghlan, Samangan, Bamyan, Daikundi and Parwan provinces. The study should be sufficiently robust to allow extrapolation of findings to the entire network.

The scope includes the following interrelated analytical components.
3.1 System Scale and Financial Footprint
A central objective of the assignment is to quantify the overall size of the informal financial system created through CBSGs and Clusters.
The service provider will estimate total savings mobilized, total loan capital in circulation, and annual loan disbursement and repayment flows. This should include the cumulative value of revolving funds, the scale of seed grant capital deployed, and the annual volume of financial transactions generated through the system.
The analysis should produce a clear picture of how much money is circulating annually through CBSGs and Clusters and how this compares with other financial inclusion models. The results should allow the program to communicate the total financial footprint of the system in a way that is understandable to investors and donors.

3.2 Financial Performance and Portfolio Health
The assessment should conduct a detailed analysis of financial performance at both CBSG and Cluster levels. This includes measuring repayment rates, default rates and their underlying causes, loan cycle frequency, and the speed at which funds rotate through the system.
The service provider will assess how effectively capital is utilized, identify patterns in loan distribution, and evaluate the financial discipline and consistency of record-keeping practices. Analysis of portfolio health should include indicators similar to those used in microfinance, adapted to the informal context.
This component should provide evidence on the reliability, risk level, and efficiency of the community financial model.

3.3 Household Economic Impact and Return on Investment
The study must quantify the economic outcomes experienced by members who access loans. The service provider will analyses how loans affect income generation, profitability of supported activities, asset accumulation, and employment creation.
This should include estimation of the average return on investment per loan cycle, business survival rates, and the extent to which households transition from subsistence to more stable economic activity. The analysis should provide clear evidence of how access to community finance affects livelihoods and resilience.

3.4 Enterprise Ecosystem and Market Contribution
CBSG loans support a wide range of micro-businesses, yet the size of this enterprise ecosystem remains unknown. The assessment will identify the types of businesses financed, estimate the number of active enterprises supported, and analyses their distribution sector.
The service provider will estimate the aggregate turnover of supported businesses and examine their contribution to local markets and employment. This component should demonstrate how CBSGs contribute to local economic development and value-chain activity.

3.5 Social Impact and Household Resilience
Beyond financial outcomes, CBSGs play a critical social role. The assessment should analyze how savings and loans are used for emergency needs, health expenses, and crisis coping.
The service provider will assess how CBSGs contribute to reduced reliance on moneylenders, improved shock resilience, and strengthened social cohesion. Particular attention should be given to women’s economic participation and decision-making power.

3.6 Governance, Transparency and Risk Assessment
Given the informal nature of the system, the assessment will evaluate governance structures, financial accountability, and risk exposure. This includes reviewing bookkeeping practices, identifying risks related to cash handling, and assessing internal accountability mechanisms.
The analysis should highlight strengths, gaps, and opportunities for strengthening governance and transparency.

3.7 Sustainability and Long-Term Viability
The service provider will analyses whether CBSGs and Clusters can continue operating and expanding with reduced external support. This includes examining capital growth trends, internal resource mobilization, and factors affecting long-term sustainability.
The study should provide realistic scenarios for the future sustainability of the system.

3.8 Cost-Effectiveness and Value for Money
The assessment will examine the efficiency of the model in terms of cost per beneficiary reached, cost per CBSG established, and cost per dollar lent. Where feasible, comparisons with other interventive approaches should be made to demonstrate value for money.

3.9 Digitalization and MIS Feasibility
CBSGs and Clusters currently rely on paper-based bookkeeping. This limits data aggregation, transparency, portfolio monitoring, and evidence generation.
The service provider will assess the feasibility of introducing a digital Management Information System (MIS). This should include analysis of digital literacy, smartphone access, and operational requirements for transitioning from paper to digital records.
Recommendations should outline how a digital system could improve transparency, efficiency, monitoring, and decision-making.

3.10 Future Opportunities and Innovation
The study should explore future development opportunities, including cluster-level enterprises, federation structures, micro-insurance, value-chain financing, and potential partnerships with formal financial institutions.

3.11 Forecasting and Investment Case
The service provider will develop forward-looking scenarios and produce a clear investment case highlighting the economic and social returns of scaling the system over the next five years.

3.12 Innovation and Future Opportunities for CBSGs and Clusters
The service provider will assess and identify innovative pathways that can strengthen income generation, local resource mobilization, and social resilience within CBSGs and Cluster structures. The assessment should move beyond traditional savings and lending functions and explore how these community institutions can evolve into broader economic and social platforms.
This component should examine the feasibility, risks, and potential impact of introducing cluster-level and federation-level economic activities that generate collective income. Particular attention should be given to identifying opportunities for cluster-owned or cluster-managed enterprises that could create shared revenue streams and reduce reliance on external grants. These may include collective agriculture or livestock production, shared processing facilities, storage or aggregation businesses, community retail outlets, service enterprises, or local value-chain participation. The assessment should analyze the governance implications, management capacity requirements, and financial viability of such collective businesses.

The service provider should also explore the potential for local resource generation mechanisms, including membership service fees, social funds, emergency funds, and internal insurance-style mechanisms that could strengthen the financial sustainability of the system. This should include examination of community-based micro-insurance models covering health, life, climate shocks, or emergency needs, with consideration of operational feasibility and risk management.
The study should further assess the potential for CBSGs and Clusters to act as community service platforms, supporting initiatives such as financial literacy hubs, vocational or digital learning hubs, market linkage facilitation, and local service delivery. The service provider should identify innovations that build existing trust, governance structures, and social capital within the groups.
The output of this section should include practical and prioritized innovation pathways, including feasibility, investment requirements, risks, and expected economic and social returns.
4. Methodology
The firm will propose a rigorous mixed-methods approach combining quantitative surveys, qualitative research, and financial analysis. The methodology must ensure representative sampling and high-quality data collection.

5. Deliverables
The assignment will produce an
• Inception report
• Progress updates
• A comprehensive final report
• Clean Database with all the tools with responses
• and a presentation of findings

8. Qualifications Required
The consultant/firm/NGO must have
• Minimum five (5) years of demonstrated experience in conducting socio-economic research, evaluations, and impact assessments.
• Successful completion of at least two similar assignments in financial inclusion, community finance, livelihoods, or rural development within the last five years, supported by client references.
• Availability of a qualified multidisciplinary team, including at a minimum a Team Leader, Statistician/Data Analyst, and Financial Inclusion Specialist.
• Minimum annual turnover of USD 30,000 in any one of the last three financial years, supported by appropriate financial documentation (e.g., bank statement or audited financial statement).
• Submission of two sample reports from similar assignments demonstrating the firm's technical and analytical capabilities.

Application
Interested applicants should submit their Proposal to Jobs.afghanistan@akdn.org no later than 05th August 2026. Please contact Mr. Jamal Nasir Yousufzai at Jamal.nasir@akdn.org and if you need further clarifications or any query on or before the deadline.

Important Notes:
• Please quote the Vacancy Number as the Subject of the e-mail when applying.
• Please submit a copy of business license along with the proposal.
• Only short-listed Firms will be contacted for further assessment.

The Aga Khan Foundation Afghanistan (AKF- Afg) promotes a transparent and equitable recruitment process. We reiterate that all services related to job applications, including processing, seminars, and training programs, are provided free of charge.

Our official job announcements are posted on the ACBAR website (acbar.org/jobs). Interested candidates are encouraged to submit their applications through our designated email address: jobs.afghanistan@akdn.org. Each job vacancy is assigned a unique identification number for your reference and upon submitting your application, you will receive an automatic confirmation acknowledging its receipt, immediately.

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Female candidates are highly encouraged to apply for this position.