STRATEGIC PLAN 2017 -2020 Contents 1. Executive summary ......................................................................................................................... 1 2. Context ............................................................................................................................................ 2 3. Hand in Hand Afghanistan .............................................................................................................. 4 3.1. Vision ....................................................................................................................................... 5 3.2. Mission .................................................................................................................................... 5 3.3. Values ...................................................................................................................................... 5 3.4. Achievements so far ................................................................................................................ 5 3.5. Our progress over time ........................................................................................................... 6 3.6. Map ......................................................................................................................................... 7 3.7. Governance ............................................................................................................................. 7 3.8. Organogram ............................................................................................................................ 8 4. Challenges we tackle ....................................................................................................................... 9 4.1. Women’s economic empowerment ....................................................................................... 9 4.2. Outmigration and empowering youth .................................................................................... 9 4.3. Security ................................................................................................................................. 10 4.4. Environment.......................................................................................................................... 10 4.5. Extreme poverty.................................................................................................................... 11 5. Theory of change .......................................................................................................................... 12 5.1. The job creation model ......................................................................................................... 14 6. Perspective 2017-2020 ................................................................................................................. 17 6.1. Strategic objectives ............................................................................................................... 17 6.1.1. Reach more people ............................................................................................................. 17 6.1.2. Generate evidence .................................................................................................................. 18 6.1.3. Be recognized .......................................................................................................................... 20 6.1.4. Drive change ........................................................................................................................... 20 6.2. Targets ....................................................................................................................................... 20 6.3. Financial projections .................................................................................................................. 21 7. Exit strategy and sustainability ..................................................................................................... 22 7.1. Exit strategy .......................................................................................................................... 22 7.2. Sustainability ......................................................................................................................... 23 8. Risk analysis and mitigation matrix ............................................................................................... 24 9. Monitoring and evaluation ........................................................................................................... 28 9.1 How we measure success ........................................................................................................... 28 9.1.1. Household income ............................................................................................................ 28 9.1.2. Food security ................................................................................................................. 29 9.1.3 Women’s empowerment .................................................................................................. 29 9.3. Impact research and evidence .............................................................................................. 30 ACRONYMS ADF Agriculture Development Fund AMA Afghanistan Microfinance Association ANDS Afghanistan National Development Strategy ANSO Afghanistan NGOs Safety Office AREDP Afghanistan Rural Enterprise Development Program BDS Business Development Services CDC Community Development Council CIG Common Interest Group CDU Capacity Development Unit DDA District Development Assembly EIF Enterprise Incubation Fund FBME Family based Micro-enterprise GDP Gross Domestic Product IDPs Internally Displaced People ILO International Labour Organization J&J CCT Johnson & Johnson Corporate Citizenship Trust MAIL Ministry of Agriculture, Irrigation and Livestock MISFA Microfinance Investment Support Facility for Afghanistan MFI Micro-Finance Institution MIS Management Information System MoEc Ministry of Economy MoLSAMD Ministry of Labor, Social Affairs, Martyrs and Disabled MoPH Ministry of Public Health MRRD Ministry of Rural Rehabilitation and Development M&E Monitoring and Evaluation NAPWA National Action Plan for Women of Afghanistan NSDP National Skills Development Program ODOP One District – One Product PC Provincial Council SDGs Sustainable Development Goals Sida Swedish International Development Cooperation Agency SME Small and Medium Enterprises USAID United States Agency for International Development Financial Year: January 1st to December 31st 1. Executive summary This four-year strategy set out how Hand in Hand Afghanistan will mobilize and equip 45,210 poor people with basic business skills and access to resources to start businesses, raise their incomes and improve their lives. During the period of this Strategic Plan, HiH Af anticipates supporting the creation or enhancement of 42,746 enterprises and 59,844 jobs, resulting in cumulative numbers of enterprises and jobs of 68,941 and 91,241 respectively by the end of 2020. These targets can be achieved if three key conditions are fulfilled: that the security situation is satisfactory, that HiH Af is able to ensure good quality of operations and results, and that funding is available. HiH Af has a particular focus on poor women and microenterprise holders in rural and sub-urban communities. It is currently operating in the Balkh, Samangan and Sarepul provinces through its Kabul and Mazar-e-Sharif Offices. Afghanistan is a costly and challenging country to operate in. To be successful, it is of vital importance to build local trust, to offer solutions that are acceptable in a male-dominated society, and to comply with traditions, customs and Islamic principles. Based on an exceptional track record in the closing strategy period, HiH Af has as its primary objective to empower women by training and helping them start and run small businesses, thereby raising their incomes and enhancing their status in the community. To meet these challenges, HiH Af works in close cooperation with line Ministries such as the Ministry of Rural Rehabilitation and Development (MRRD), the Ministry of Agriculture, Irrigation and Livestock (MAIL), the Ministry of Labor, Social Affairs, Martyrs and Disabled (MoLSAMD), the Ministry of Economy (MoEc), and local authorities and actors, in particular Community Development Councils (CDCs). It also aligns its operations with the Afghan Government’s broader vision and plans. HiH Af has a light structure and small overhead costs. Relative to the Afghan context, it operates a highly cost effective and replicable model, working only with local staff, and drawing on existing community structures and initiatives. HiH Af tracks progress and ensures full accountability for the funds used. Continuing to strengthen the monitoring and evaluation system and processes is a priority for the Strategic Plan period. HiH Af is governed by a Board and will grow from a current level of some 63 staff in 2013 to 178 by December 2016. HiH Af works in close co-operation with the fundraising and support offices of the network, Hand in Hand International and Hand in Hand Sweden, to mobilize resources for the implementation of this strategy. To implement the Strategic Plan, HiH Af needs additional funding of around $3.4 million1 in 2017, $3.7 million in 2018, $4.9 million in 2019 and $5.3million in 2020 to cover the cost of mobilization, training and support of its clients. In total, HiH Af will need to raise