Afghanistan Economic Outlook

August 2023

Afghan women at a textile factory in Kabul
Source: Wikipedia.org

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.

Afghan company exports products to France and Turkey

Zabihullah Mujahid, spokesman of the Islamic Emirate of Afghanistan (IEA) said on X, formerly Twitter, on Monday, that Pamir Cola group of companies has started exporting its drinks to France and Turkey.

Mujahid said the first consignment consisted of different fruit juices, soft drinks, and other products were dispatched on Sunday.

This latest development is in line with the IEA’s quest to grow the export sector in order to boost the economy.

China interested in investing in Afghanistan car manufacturing Sector

The Afghanistan Industrialists Association (AIA) says that a number of Chinese investors have expressed interest in investing in the car manufacturing sector and making electric car batteries in Afghanistan.

AIA officials said this after participating in an international exhibition in China.

According to the officials of the association, Chinese investors have stated that if the banking problems between Afghanistan and China are resolved, they will invest in the manufacturing of cars and batteries for electric cars in Afghanistan.

“The officials of the automobile company said that if the banking problems between China and Afghanistan are resolved, they will soon open their representative office in Afghanistan and start their production and sales in this country,” Abdul Jabbar Safi, the head of AIA, said.

Meanwhile, the Ministry of Industry and Commerce said that investment opportunities in Afghanistan are favorable more than ever and foreign investors can invest.

“We have created facilities for all domestic and foreign investors in the investment sector, and we are trying to expand this process for the development of investment and economic activities,” Abdulsalam Javad Akhundazda, the spokesman of the Ministry of Industry and Commerce, said.

UN praises Afghan women entrepreneurs’ economic activities

Marking World Entrepreneurs Day, the UN said Monday that it supports Afghan women entrepreneurs across Afghanistan and hailed their initiative to create jobs and contribute to economic growth.

“On World Entrepreneurs Day, we praise the amazing Afghan women entrepreneurs we work with across the country. We are proudly supporting them and their drive to innovate, create jobs, participate and contribute to economic growth against all odds,” said UN Women Afghanistan on its X (formerly Twitter) page.

However, Afghan women entrepreneurs expressed concern, saying that the UN does not support them.

“The United Nations only has luxury offices, which costs a huge amount per month, but unfortunately, it does not support women in the slightest, and in such a situation, I personally, as an entrepreneur, expect the United Nations to cooperate with Afghan women entrepreneurs,” said Nafisa Danesh, a member of the Women’s Chamber of Commerce.

“Women’s Chamber of Commerce has 560 members. Across the country, about 8,000 Afghan women are actually active in various sectors of business, and their activities are mostly in seven sectors; handicraft sector, agriculture sector, health sector, service sector, food sector, industry sector and mining sector,” said Abdul Salam Jawad Akhundzada, a spokesman for MoIC.

“The presence of women in the investment and economic fields of the country can increase the food security of families and limit the scope of poverty in the country,” he added.

Afghanistan Exported 2,000 cartons of fresh grapes to Russia via Hairatan port

Officials from the Balkh Chamber of Commerce and Investment said Saturday 2,000 cartons of fresh grapes has been exported to Russia via the Hairatan border crossing in the norther province of Afghanistan.

Asadullah Asadi, head of the chamber in Balkh said the grapes were sent overland on Saturday.

Asadi welcomed the increase in Afghanistan’s exports to neighboring countries and expressed his satisfaction with the opportunities provided for economic growth of the country.

He said traders will start exporting other fruits, through the same land port, in the near future including pomegranates and apples among other fruits.

The Hairatan dry port and border checkpoint sits along the Amu River which forms the border with neighboring Uzbekistan. The two countries are connected by the Afghanistan–Uzbekistan Friendship Bridge, which is fast becoming a key trade route between Afghanistan and countries to the north.

Grape, Honey and Fig Festival held in Herat

Farmers in Herat province this week showcased their grapes, honey and figs at a local expo which was organized by the local chamber of agriculture and livestock.

Herat’s department of agriculture and livestock said this year grapes and figs harvested were 40% and 80% less respectively due to the severe winter and the ongoing drought.

Farmers said that they hope to increase export opportunities but need cold storage facilities. They say currently they sell only to the domestic market, at very low prices.

This was the 7th annual grape, honey and fig festival in the province. The produce was displayed at 40 stalls.

Grape farmers said they expect to collectively harvest about 100,000 tons this year, despite the volume being substantially less than in the past.

Customs Tax on Coal Exports Dropped to $30 From $45 Per Ton: MoMP

The Ministry of Mines and Petroleum wrote in a statement that in accordance with the decree of the leadership of the Islamic Emirate, the ministry has reduced the export customs duty of one ton of coal from 45 to 30 dollars.

According to the spokesman for the MoMP, Homayoun Afghan, the “royalty tariff” of each ton of coal exported has also been reduced from 2,500 Afs to 2,200 Afs.

“Considering the international prices of the coal, and to bring facilities for the traders and to encourage them, the leadership of the Islamic Emirate had reduced the royalty of coal from 2,500 Afs to 2,200 Afs,” he said.

Meanwhile, the Afghanistan Chamber of Commerce and Investment (ACCI) said that due to an increase in tariffs, the exports of Afghanistan to Pakistan have significantly increased.

“The reduction in taxes will bring changes in the export of coal. Currently, Pakistan imports coal from African countries, this move will boost the market of Afghanistan’s coal. This can also help with the transit of coal, and we can export coal to other countries as well,” said Mohammad Younus Momand, deputy head of ACCI.

The Ministry of Industry and Commerce (MoIC) said that nearly 500,000 tons of coal have been exported abroad within the first four months of the current solar year.

“Within the first four months of the year, 497,000 tons of coal worth $5 million have been exported,” said Akhundzada Abdul Salam Javad, a spokesman for the MoMP.

Intl Cultural, Transit Exhibition in Rah-Abrisham Closes

The Afghanistan Traders and Investors Union, said that the Rah-Abrisham International Public Cultural and Transit Exhibition, which closed today (Thursday), attracted more over 7,000 visitors per day.

The executive director of the organization, Hizbullah Ulfat, said that throughout the three days participants were able to sign contracts with a number of companies.

Ulfat added that 30% of the participants in this exhibition were women.

“Our visitors were over six to seven thousand daily, including national and international businessmen, and families who visit the exhibition,” Ulfat told TOLOnews.

The participants asked the Islamic Emirate to improve the opportunity for organizing national and international exhibits since they were pleased with their sales at the expo.

“The three days of the exhibition were good, it was good for the people, and the sales were good. We made a deal with several companies,” said Parwana, a participant.

“The expo is also a part of marketing. Many traders who import from other countries get to know domestic products,” said Ahmad Javid, another participant.

Visitors said holding such exhibitions to advertise domestic products is beneficial.

“We are aware of the level of our industry, for instance, which items are produced at home, for instance in the provinces of Herat, Kandahar, Paktia, or Mazar,” said Nematullah, a visitor.

The three-day Rah-Abrisham International Public Cultural and Transit Exhibition was held in the Loya Jirga tent in Kabul, where traders displayed their products in 400 booths.

Kazakh-Afghan Business Forum opens in Astana

Kazakh-Afghan Business Forum opened in the Kazakh capital Astana on Wednesday bringing together trade officials and members of the private sector.

The Afghan Ministry of Industry and Commerce said that the forum is being attended by representatives of the banking sector, transport, communications, manufacturers of carpets, beverages, medicines and precious stones.

The forum also includes representatives from agriculture, fuel, logistics, services, industries and construction sectors.

The forum is aimed at increasing the volume of trade between Afghanistan and Kazakhstan, addressing problems and increasing coordination between private sectors of the two countries.

Simultaneously, a three-day expo showcasing Afghan and Kazakh products has opened in Astana.

At least 350 Afghan companies have products on display at 70 booths. This includes agricultural, industrial and mineral products.

Nooruddin Azizi, Acting Minister of Industry and Commerce, said that the expansion of trade relations between Afghanistan and Kazakhstan could lead to the improvement of the economic situation of both countries.

“Today, a good opportunity has been created for companies from different industries to discuss various issues such as exchanging goods and services, presenting business proposals, sharing experiences and knowledge, and even signing cooperation and commercial contracts,” Azizi said.

According to statistics, currently the trade exchange between Afghanistan and Kazakhstan totals $2 billion per year.

Afghans participating at the expo have expressed hope that they can draw the attention of foreign investors to Afghanistan.