August 30, 2011
Volume Two, Issue Thirty-Two
Innovating in Afghanistan with Mobile Banking

USAID Administrator Dr. Rajiv Shah, Minister of Telecommunication Amirzai Sangeen, Minister of Education Farooq Wardak and representatives of Afghanistan's Telecom Companies hold a press conference about the joint Mobile Money initiative on Wednesday August 24, 2011. Photo Credit: Barat Ali Batoor/Department of State
During Administrator Rajiv Shah's trip to Afghanistan last week, he announced three USAID innovation grants, totaling just over $2 million, to develop applications in the field and begin to create a mobile banking system that could include all Afghans.
At the grant kick-off event, the Afghan education minister highlighted the urgent need for mobile payments in Afghanistan by relaying that his staff member was killed just three weeks ago while transporting cash to pay a teacher in a remote province in northern Afghanistan. He expressed his frustration that thousands of teachers, who are critical to Afghanistan's future, often wait months to get their salaries due to cash transportation difficulties. Administrator Shah expressed his delight that USAID is able to help seed a partnership between the Afghan Education Ministry and the mobile operator MTN to begin paying teachers in 10 provinces over the mobile platform, thus ensuring they get paid on time, and more importantly, that no ministry employee loses his life for a duffle bag of cash. If the program is successful, much of Afghan civil service may eventually benefit from a mobile payments system that will help the government develop its own capacity as U.S. and NATO troops transition home.
Read the full post and learn how you can help on USAID's ImpactBlog and check out this video on mobile banking in Afghanistan.
Bits from the Blog
Smart Compassion: How Donating Cash Helps More People in Times of Disaster
When crisis strikes, as in the Horn of Africa, many people like to donate items but often times cash helps more. Read a guest blog from Juanita Rilling, Director of The Center for International Disaster Information.

Unsolicited donated goods sit unused following the disaster response in Haiti, 2010. (CIDI)
When disaster strikes overseas, people who want to help may begin collecting items intended for use in relief operations. It is not unusual for community and civic groups to have collected thousands of pounds of material - typically used clothing, canned food and bottled water - realizing only afterward that they do not know to whom to send the collection, what their transportation options are, or whether the items are actually needed.
There is good news for people with big hearts and lean wallets who want to give meaningful support to relief efforts overseas. The most effective donations are also the least expensive - you can actually help more people by contributing smartly.
Read more about the best ways to help and get the latest information about US assistance in the Horn of Africa.
Innovation @ USAID
At USAID, we use "innovation" to refer to novel business or organizational models, operational or production processes, or products or services that lead to dramatic improvements (not incremental ones) in achieving development outcomes more effectively and cheaply, and that reach more beneficiaries in a shorter period of time.
Financing Developing Market Growth
 Mr. Basri has run his auto-garage store in Banda Aceh for 12 years. He borrowed from Bank Danamon to increase the capital and grow his business. This is the third time he applied for the loan. With these loans he is able to open a restaurant and employ 12 more people. Photo Credit: USAID DCA/ Indonesia
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USAID Development Credit Authority (DCA) is an innovative process that enables small businesses to access loans, expanding the entrepreneur market in developing countries.
Through the DCA model, financial institutions seeking to invest in developing-world entrepreneurs utilize USAID's expertise in assessing loan seekers and provide loans that are partially guaranteed by DCA. Since 1999, DCA has facilitated borrowing for 87,000 entrepreneurs (including 33,000 women). Out of nearly $2.3 billion leveraged in private financing, developing-world entrepreneurs have returned 99 percent of their initial loan costs.
The program continues to effectively demonstrate to financial institutions that targeted borrowers are both a creditworthy and profitable source of business, and as a result participating financial institutions have expanded their reach and capacity.
Read more about USAID's Development Credit Authority (DCA).
Read Giving Women More Credit in FrontLines Magazine.
To highlight an Innovation of USAID, submit examples to: InnovationExamples@usaid.gov
Visit USAID's Innovation Website for more information.
From the Field
Collateral Benefits: How the Pursuit of an AIDS Vaccine
Has Boosted African Research
 Dr. Gaudensia Mutua, principal investigator and medical manager at KAVI-Kangemi. Photo Credit: Jean-Marc Giboux, Getty Images, Courtesy of IAVI
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In 1999, the Kenya AIDS Vaccine Initiative was founded by local scientists with the goal of developing a vaccine that would block infection of the strain of HIV most prevalent in Kenya. Just over a decade later, the USAID-funded and International AIDS Vaccine Initiative-supported center has established itself as a model for developing country research institutions, capable of rigorously and ethically evaluating AIDS vaccine candidates and playing a crucial role in the global quest for the vaccine.
Read the article in FrontLines.
DC Details
Feed the Future Newsletter
 The first edition of the new Feed the Future interagency newsletter was issued on Aug. 19. This product is intended to be a monthly review of major Feed the Future news, events, and activities. It is intended to enhance information sharing across the interagency while improving outreach to key external constituents in the academic and stakeholder communities.
The first edition features Secretary Clinton's recent remarks at the International Food Policy Research Institute as well as the recent U.S. delegation to Kenya. With contributions from an array of interagency colleagues, this product represents the whole-of-government approach that is so critical to the success of Feed the Future.
To download this month's edition or to subscribe to the newsletter listserv, please visit Feed the Future.
Want More Information? Follow the Impact Blog
In addition to our weekly newsletter, USAID has an active blog that covers USAID's programs across the world. Click here to visit the Impact Blog.
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