Afghanistan Economic Outlook

April 2024

Afghanistan Economic Outlook, is a creative initiative of the Afghanistan Economic and Legal Studies Organization (AELSO) which reflects most important & the latest economic events that happened during a month in Afghanistan.

By reading this economic newsletter, that has designed in three languages (Pashto, Dari & English), you can get a wider overview of Afghanistan’s economic situation.

IOM Makes Efforts for Women's Economic Empowerment in Afghanistan

The International Organization of Migration (IOM) reported that in less than four months, it has created over 2,200 job opportunities in Afghanistan, including 1,103 specifically for women.

Several businesswomen call on aid organizations to support female entrepreneurs and businesswomen in the country.

Zahra Sadat Hossaini, who was previously employed at a government agency, has been unemployed since the re-establishment of the Islamic Emirate in the country.

She says that over the past two years, she has created an agency to support women, directly and indirectly providing jobs and training opportunities for about 700 women in the handicraft sector.

Some businesswomen say that financial support for them positively impacts the economic growth of their families.

Nadia Nayab, a businesswoman, said: “Women have turned limitations into opportunities and work in various fields in Afghanistan, which itself is a good opportunity for progress.”

Anisa Ahmadi, another businesswoman, said: “I work in the bridal gown production sector, which is a very good area, but there must be enough income and expense to be able to produce; the costs in the bridal gown sector are very high.”

Previously, a United Nations Development Programme (UNDP) report stated that the agency, in collaboration with its partners, has supported 75,000 small businesses led by women in Afghanistan and created job opportunities for 900,000 individuals in total.

Afghanistan Sees 20% Increase in Dried Fruit Exports in 1402

The Ministry of Industry and Commerce reported a 20% increase in the export of dried fruits in the year 1402 (solar year).

According to the Commerce and Industry spokesman, last year dried fruits worth $466 million dollars were exported to India, China, Pakistan, Saudi Arabia, United Arab Emirates, Germany, and Turkey.

The Afghanistan Chamber of Commerce and Investment (ACCI) considered the increase in flights through the country’s air corridors as important in boosting the export of dried fruits.

A number of traders in the country mentioned banking restrictions, existing challenges in obtaining business visas, and transit and trade challenges at the country’s passageways as the main challenges to the export of dried fruits in 1402 (solar year).

According to the statistics of the Ministry of Industry and Commerce, in 1402 (solar year), exports worth $1.8 billion dollars were conducted outside the country.

Afghanistan Exports 67 Tons of Saffron, Worth $49M: Ministry

The Ministry of Industry and Commerce reports that 67 tons of saffron, valued at $49 million, were exported last year.

The spokesperson for the ministry, said that the saffron was exported to India, the United Arab Emirates, Spain, Saudi Arabia, the USA, Indonesia, Turkey, and the UK.

Saffron, a major export commodity for Afghanistan, is predominantly cultivated in the provinces of Herat, Balkh, Kandahar, Sar-e Pol, Daikundi, and Uruzgan. Notably, saffron from Herat is renowned for its superior quality and robust presence in the global market.

The National Saffron Workers Union (NSWU) stated that the cost of transporting saffron abroad is high and that attention must be paid to reducing prices.

The Ministry of Agriculture, Irrigation, and Livestock reports that in the solar year 1402, over 23,000 metric tons of saffron were harvested across 26 provinces of the country.

The Chamber of Commerce and Investment also emphasizes support for saffron products and the creation of exhibitions to further market them.

Previously, the National Saffron Workers Union (NSWU) had reported that in the solar year 1402, saffron harvests in Herat had doubled, with an expected harvest of nearly 40 tons of saffron that year.

Women Entrepreneurs in Afghanistan; Obtaining Loans Their Key Challenge

The United Nations Development Programme (UNDP), in a report, said that women entrepreneurs have less job opportunities and that these women [the entrepreneurs] face serious challenges.

The report states that obtaining loans from banks is among the key problems for these women.

The report which have been prepared based on a survey of 3,100 women entrepreneurs during the years 2022, 2023, and 2024, shows that 41 percent of these women have taken loans for their businesses, and only 5 percent of them have received loans from banks and microfinance institutions, with the rest having to borrow from family members and friends to advance their work and trade.

Stephen Rodriques, the country director of the UN Development Programme in Afghanistan, stated: “Women have been the driving force behind family welfare in Afghanistan for a long time and play an important role in preserving the local economy. The ripple effects of investment and their courage and resilience against challenges tell a compelling story of strength and hope.”

“The UNDP development program highlights that 73 percent of mobility restrictions on women who cannot even travel to local markets without the accompaniment of a male family member intensify their challenges. However, this report notes that women are finding ways to overcome these challenges and 80 percent of companies led by women rely on their business incomes as their primary source of revenue,” said Stephane Dujarric, the spokesperson for the UN Secretary-General.

The UNDP report also states that women’s participation in economic activities is very important for the economic growth of families and social development, and the UN Development Programme has supported over 75,000 small businesses led by women in Afghanistan and has created employment opportunities for 900,000 individuals.

“When women have the opportunity to fully participate in economic activities, everybody wins. The 2024 report on Afghan women’s economic empowerment, by the UN Development Program makes a very important point. By investing in Afghan woke women’s economic empowerment, we are not only just unlocking their potential, we are also unlocking the potential of entire Afghan community,” said Raffaella Iodice, the EU Chargée d’Affaires to Afghanistan.

Momtaz Yusufzai, an entrepreneur speaking to TOLOnews, said: “All the factories that we currently have in Afghanistan, approximately 85 percent of their employees are women. and most of them are doing well but they lack sufficient capital. If they had the capital, they themselves would establish factories to provide job opportunities for others.”

Meanwhile, the Chamber of Commerce and Investment believes that the activities of women entrepreneurs are important for the country’s economic growth. The chamber emphasizes that currently, women are engaged in sectors such as carpet weaving, handicrafts, dried fruit processing, and others; however, their activities need to be supported for further development.

Khanjan Alokozay, a member of the board of directors of the Chamber of Commerce and Investment, stated: “Ground has been paved for women to a certain extent, they participate in exhibitions, engage in the initial production of carpets, embroidery, fresh and dried fruits, pickling production, tailoring, and work in hotels.”

Statistics from the Chamber of Commerce and Industries also show that currently, more than 9,000 women across Afghanistan are active in doing business.

Afghan-Kazakh exhibition opens in Kabul

The “Afghan-Kazakh” exhibition, a joint event between Afghanistan and Kazakhstan, was inaugurated in Kabul on Thursday, attended by Taliban and Kazakh officials.

According to the Taliban’s Ministry of Industry and Commerce, the exhibition showcased domestic products from both Afghanistan and Kazakhstan.

Taliban officials at the opening ceremony claimed to have ensured security and stability, and invited other countries to invest in Afghanistan.

Abdul Ghani Baradar, the Taliban’s deputy economic leader, said the exhibition would enhance trade levels between the Taliban and other nations.

Noorulddin Azizi, the Taliban’s minister of industry and commerce, also claimed that trade volume as well as banking and private sector relations between Afghanistan and Kazakhstan have increased.

Afghanistan-Kazakhstan chamber of commerce opens in Herat

The Ministry of Interior said the governor of Herat province Islam Jar met with Alim Khan Yasin Gildaye, Ambassador of Kazakhstan to Afghanistan, to discuss various issues around trade.

According to the ministry, the two sides discussed the expansion of trade facilities, increasing the volume of trade exchanges between traders of the two countries, reducing customs tariffs, solving the challenges of traders and issuing visas to them.

The Afghanistan-Kazakhstan Chamber of Commerce has been opened in Herat in order to facilitate and increase trade between the two countries.

Afghanistan reaches self-sufficiency in production of 133 items: MoIC

The Ministry of Industry and Commerce (MoIC) says Afghanistan has reached self-sufficiency in 45 sectors and the production of 133 items, and that the ministry is striving to change Afghanistan from an importing country to an exporting one.

The ministry officials said that for this purpose, supporting domestic products and attracting investment is essential.

The ministry’s spokesman emphasized increasing the use of domestic goods and products in government and national projects and added that efforts have also begun to find a market for domestic products inside and outside the country.

Meanwhile, the Chamber of Industries and Mines (ACIM) says over the past two and a half years, more attention has been paid to the development of domestic production and it is also expanding.

The chamber officials stressed expanding the culture of using domestic products in government projects.

Economic experts also said that if the use of domestic products in government projects increases, Afghanistan will quickly move towards economic independence.

Turkey’s 77 keen to start up cement plant in Jawzjan

Turkish construction company 77 officials have met with the acting minister of mines and petroleum, Shahabuddin Delawar, about investing in a cement factory in Yatim Taq area of Jawzjan province.

The minister, Shahabuddin Dalawar, has said the ministry will cooperate with the company but first needs a proposal, including details around how they plan to implement the project as well as social development plans.

Turkey’s 77 company has been working on electricity generation projects in Afghanistan for several years.

A number of industrialists say that if more investment is made in the cement production sector, not only will domestic demand be met, but the country’s cement will also be exported.

At the moment, cement is being produced by private companies in the provinces of Kandahar, Parwan and Herat.

Afghanistan exports 67 tons of Saffron, all domestically produced

The Ministry of Industry and Commerce states that Afghanistan, with its high-quality saffron, does not need to rely on the saffron of other nations to compete in global markets, as Afghan saffron ranks first in the world.

According to the ministry’s spokesperson, Afghanistan exported 67 tons of saffron to various countries around the world last year. This comes as Iranian media reported yesterday that Afghanistan annually exports about 70 tons of saffron, with less than 20 tons being domestic production and the rest being Iranian saffron.

Iranian media quoted Ali Hosseini, a member of Iran’s Saffron Council, on Tuesday as saying that Afghanistan produces less than 20 tons of saffron but exports about 70 tons, indicating that Iranian saffron is sent there, packaged, and then exported from Afghanistan.

The spokesperson for the Ministry of Industry and Commerce in Afghanistan, responded to the remarks of an Iranian Saffron Council member in an interview with Khaama Press on Wednesday, April 17^th, saying, “Afghanistan exported 67 tons of saffron worth about $49 million to various countries in last solar year -1402. All of this saffron was produced in Afghanistan.”

The spokesperson for the Ministry of Industry and Commerce further stated that all 67 tons of saffron exported by Afghanistan were domestically produced, and no other country’s saffron was mixed with it.

It is worth mentioning that Iranian media cited a member of the Iranian Saffron Council yesterday expressing concerns about losing global markets. This member of the Iranian Saffron Council had stated, “We handed over export markets that we had worked hard to prepare for years due to mismanagement in production, harvesting, and dual exports to Afghanistan and some other countries.”

Turkish Airlines to resume operations in Afghanistan soon: Official

The Taliban’s Ministry of Transport and Aviation states that Turkish Airlines intends to resume its flights to Afghanistan soon.

The spokesperson for this ministry wrote on its social media platform X, that there are no technical or airport-related issues for the company to begin its flights.

Imamuddin Ahmadi stated that all facilities for foreign airlines are available at all Afghanistan airports.

Following the Taliban’s resurgence in Afghanistan, many foreign airlines, including Turkish Airlines, suspended their flights to the country.

However, in January last year, Emirates Airlines resumed its flights to Afghanistan. Still, due to passenger shortages and existing issues in Afghanistan, the flights of these companies show a considerable reduction.

It is said that difficulties in obtaining visas for Afghans, especially traders, are one of the reasons for the decrease in air travel.

During the early days of the Taliban’s rule in Afghanistan, the Taliban’s Civil Aviation Authority announced that 60 to 70 aircraft were passing through Afghanistan airspace every 24 hours.

This is while before the collapse of the previous government, according to official statistics, over 250 flights were operated daily from Afghanistan airspace.