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Institutional Overview: Lamen Microfinance Institution (LMI)
Empowering Communities through Sharia-Compliant Microfinance

Established in 2024, Lamen Microfinance Institution (LMI) is a private, for-profit Islamic microfinance entity committed to promoting financial inclusion and sustainable economic development in Afghanistan. Operating under the supervision and regulatory framework of the Central Bank of Afghanistan (Da Afghanistan Bank - DAB), LMI is also officially registered with the Ministry of Industry and Commerce (MoIC), ensuring full legal and institutional compliance.

LMI is backed by two independent private shareholders who share a unified vision to foster socio-economic empowerment through ethical and Sharia-compliant financial services. As a formally recognized and active member of the Afghanistan Microfinance Association (AMA), LMI aligns its operations with national priorities and industry best practices.

Corporate Governance Structure

LMI operates with a robust and transparent corporate governance model, ensuring accountability, risk mitigation, and operational efficiency. Its governance framework is structured as follows:

• Shareholders' General Assembly – The apex decision-making body representing ownership interests.

• Board of Supervisory (BoS) – Responsible for strategic oversight, policy governance, and safeguarding stakeholder interests.

• Board of Management, comprising:

  • Chief Executive Officer (CEO)

  • Chief Operating Officer (COO)

  • Chief Finance Officer (CFO)

  • Chief Compliance Officer (CCO)

  • Risk and Audit Manager

  • Shariah Advisor

In addition, several specialized internal committees—such as the Risk Management Committee, Compliance and Audit Committee, and Shariah Review Committee—play critical roles in ensuring risk-informed decision-making and Sharia-compliant practices.

Sharia-Compliant Financial Services

LMI is fully committed to delivering Islamic microfinance solutions that are both ethically grounded and economically empowering. Its suite of financial products is developed in accordance with Islamic jurisprudence (Fiqh al-Muamalat) and includes:

• Murabaha (Cost-Plus Sale) – Asset-backed financing where profit margins are pre-agreed.

• Mudarabah (Profit-Sharing) – Investment partnerships between LMI and entrepreneurs.

• Musharakah (Joint Venture) – Equity participation arrangements fostering shared risk and reward.

• Qard al-Hasan (Benevolent Loan) – Interest-free loans provided as a social welfare initiative.

These products are tailored to support micro-entrepreneurs, small business owners, farmers, and women-led enterprises, enabling them to access capital without compromising their religious values.

Operational Presence and Geographic Outreach

Headquartered in Kabul, LMI is strategically positioned to oversee operations and scale its outreach to underserved communities across Afghanistan. Recognizing significant gaps in financial service coverage, particularly in the South and East regions, LMI conducted a comprehensive market survey and needs assessment to identify high-priority areas for intervention.

The findings highlighted that no active microfinance providers currently operate in several of these provinces, presenting a substantial opportunity for LMI to lead inclusive growth. In response, LMI has:

• Launched its first provincial branch in Nangarhar Province

• Established a second branch in Kunar Province

• Initiated service expansion strategies toward Nooristan and Laghman provinces

Through these branches, LMI has begun disbursing funds under a variety of Islamic financing modes, offering financial solutions that align with the diverse needs of its clients.

Strategic Vision and Funding Needs

LMI’s mission is to become a national leader in Islamic microfinance, promoting resilience, entrepreneurship, and dignity through financial inclusion. While the institution has benefited from substantial capital investment by its founding shareholders, these resources are insufficient to achieve the scale and depth of outreach required to serve Afghanistan’s vast unbanked population.

To bridge this funding gap and realize its strategic objectives, LMI is actively seeking partnerships with international development agencies, donors, and microfinance investment support organizations. This support would be instrumental in:

• Expanding operational infrastructure and branch network

• Enhancing product development and client outreach capacity

• Investing in digital financial services and risk management systems

• Increasing access to finance in fragile and underserved regions

LMI believes that through collaborative partnerships and shared commitment, it can make a meaningful contribution to Afghanistan’s economic recovery and long-term development.

Conclusion

Lamen Microfinance Institution (LMI) stands at the forefront of a new era in Afghanistan’s microfinance sector—one that is Sharia-compliant, socially responsible, and strategically ambitious. With a proven governance model, clear operational roadmap, and a deep understanding of community needs, LMI is well-positioned to drive sustainable impact and inclusive growth across the country.