Introduction: The Village of Siahgerd and its Traditional Economy

In Balkh province, the mud-built village of Siahgerd, home to 12,000 residents, has an economy deeply tied to the land. For generations, farming—especially cotton, sesame, and wheat—has been sustained by the Nahr-i-Shahi canal, the village’s lifeline. However, this traditional economy faced significant challenges. Farmers had to travel up to 2 hours across desert terrain to reach the nearest market, where they sold their raw produce for minimal profit. This cycle kept them locked in a low-profit, subsistence economy.

Project Intervention: A Spark for Economic Transformation

With the support of the European Union and the United Nations Development Programme (UNDP), HARAKAT established over 800 Rotating Savings and Credit Associations (ROSCAs) in Balkh and Faryab provinces, creating a new opportunity for more than 13,000 people. These groups allowed community members to save collectively and lend to one another without interest.

Imamuddin’s father, who serves as the village leader (Qaryadar), was well aware of the problems caused by interest-based loans. He says, “In the past, loans came with profit and interest. We completely banned usury in our area.” Seeing the project’s interest-free loan model, his son, Imamuddin Shamsi, seized the opportunity. Imamuddin adds, “The HARAKAT team was the main reason. I had no plans before; they encouraged us to start new enterprises.”

Results: The Step-by-Step Growth of a Business

Imamuddin joined the 16-member “Jawidan” savings group and was soon elected as its president. His first entrepreneurial test was a small but clever investment.

With his first loan of 8,000 AFN, he bought a goat. This small investment was highly successful; the goat gave birth to two kids, and today their total value has reached 20,000 AFN.

This initial success gave him the confidence to take bigger steps. With his second loan, he purchased a small sesame oil extraction machine for 19,000 AFN. The high quality of his oil, which is purified naturally without harmful additives, quickly attracted many customers. “Our oil doesn’t even make it to the market; everyone comes here to buy it. Friends call me asking to bring them pure oil.”

Demand grew so rapidly that Imamuddin, with a third loan of 20,000 AFN from the group, reinvested profits, and received help from his father to buy a larger machine for 90,000 AFN. This new machine, which can process one Mazar seer (14 kilograms) of sesame in just 20 minutes, increased his output tenfold.

Impact: Creating an Economic Hub and Shared Profit

Imamuddin’s success did not remain his alone. He now sells his oil and uses the by-product (kunjarā), worth 1,400 AFN per 50 kg bag, to feed his own livestock. Furthermore, he processes sesame for other farmers for a fee of 10 AFN per kilogram. “I am never idle. Whatever I can produce now, I can sell, because the demand is very high.”

This success was also a result of the project’s training. He says, “We received training from HARAKAT on lending procedures, accounting, and bookkeeping.” Imamuddin’s business has turned Siahgerd into a small but important agribusiness hub, and the profits have benefited his family. “The profit covers our household expenses. I have five children; the oldest is 9 years old.”

Future Outlook: A Shared Dream of Father and Son

Imamuddin now has big dreams for expanding his business. He plans to use his smaller machine to start producing almond and black seed oil, and within the next year, he hopes to add cottonseed and flaxseed oil to his production line. He also has a clear plan to reach larger markets; his brother has a shop in the Mazar-e-Sharif market, and Imamuddin intends to sell his high-quality oils through his brother’s shop, directly connecting the village’s produce to city customers.

But the larger vision is a dream tied to his father’s experience as a community leader. His father says: “I have a plan for a cooperative. We want to become formally registered, purchase machinery and agricultural fertilizer, and allow other village groups to join this cooperative.” This shared dream shows how the innovation of one generation, combined with the wisdom and experience of the previous one, can transform not just a single business, but the economic future of an entire community.