Afghanistan Economic Development, Investment, and Trade Opportunities
Email: kabulUSAIDinformation@usaid.gov Website: http://afghanistan.usaid.gov
Agenda Afghanistan Growth Finance (AFG) Financial Access for the Investing in the Development of Afghanistan (FAIDA) Assistance in Building Afghanistan by Developing Enterprises (ABADE) Afghanistan Trade and Revenue (ATAR)
Afghanistan Growth Finance (AGF) “Helps local entrepreneurs and change-driven companies utilize financial inputs and add value through innovation and use of new technologies.” Program emphasis Program Accomplishments Agribusiness >$40 million in total investments Processed agro-industry >$300 million in development Light manufacturing impact to stakeholders Alternative energy Access to long-term growth capital to Afghan companies Transport and distribution Technology/communications Retail consumer products and services
Financial Access for the Investing in the Development of Afghanistan (FAIDA) “…to build a sustainable, diverse and inclusive financial sector that can generate and sustain quality employment to meet the needs of micro, small and medium enterprises throughout the country, with a focus on the agricultural sector and the southern and eastern regions.”
Financial Access for the Investing in the Development of Afghanistan (FAIDA) Program Components Enterprises: Links lenders to businesses in need of financing Financial Institutions: Provides assistance to financial institutions to enhance capacity to lend and profitability Banking Capacity: Supports capacity development of the financial sector to build human and organizational capacity Regulatory: Facilitates an enabling lending environment that reduces risk and increases certainty Mobile Money and Branchless Banking: Provides technical assistance to expand the use of mobile money Gender Mainstreaming : Ensures that women are integrated in financial sector and are provided access to financing and opportunities for economic and professional growth
Financial Access for the Investing in the Development of Afghanistan (FAIDA) Accomplishments Over 17,000 families directly benefited from financial assistance ~$26 million private sector loans facilitated ~$18 million in loan applications in the pipeline. Over 2,100 employees of the financial sector (bank) participated in 200 financial sector training sessions. Over 900 businesswomen from 34 provinces participated in 17 business and gender workshops $1.86 million private sector loans facilitated to 575 businesswomen. Developed two insurance products: Islamic (Takaful) and Agricultural Insurance. Technical assistant to develop the Insurance Association of Afghanistan
Assistance in Building Afghanistan by Developing Enterprises (ABADE) “…working principally with the private sector to strengthen the productivity of enterprises for sustained growth and job creation.” Objectives Increase domestic and foreign investment Stimulate employment and improve sales of products Complement other USAID programs focused on improving the business enabling environment, workforce development, and access to finance.
Assistance in Building Afghanistan by Developing Enterprises (ABADE) Program Components Small and Medium Enterprises and Public-Private Innovation Alliances - 1:2 and 1:1 matching funds Technical Assistance and Business Advisory Services Business Enabling Environment
Assistance in Building Afghanistan by Developing Enterprises (ABADE) Results On track to create $180 million in private sector investment 365 public-private alliances to be formed 41 Innovation public-private alliances to be formed 46,000 full-time equivalent jobs to be created 20% average increase in sales by public-private alliance SMEs 6 Action Plans accepted by Ministry of Commerce and Industry
Afghanistan Trade & Revenue (ATAR) “Creating an enabling trade environment” Program Emphasis/ Components WTO accession and implementation of associated laws, regulations, and agreements Regional trade integration: harmonization of tariffs and crossborder procedures; private sector linkages Revenue generation for the government: continued customs reform and implementation of a value-added tax
Afghanistan Trade & Revenue (ATAR) Accession to the WTO in 2014 Implementation and administration of legal and regulatory reforms required for WTO conformity Signed and implemented trade and transit agreements with neighbors and trading partners Increased exports to neighboring countries Expedited cross-border transit Customs collections increased and costs reduced Afghan Customs Academy established as primary training facility Implementation of a VAT Increased government revenue from VAT and Customs Increased public and private sector awareness of trade opportunities
Published on Feb 6, 2014
Mr. Thomas Waters, PMP, Deputy for Programs and Project Management, Middle East District, US Army Corps of Engineers (USACE), Winchester, VA...