Afghanistan - Competition from State-Owned EnterprisesAfghanistan - Competition
The Government of Afghanistan operates over 30 active state-owned enterprises (SOEs), almost all of which are wholly-owned. About 11000 people are employed, in sectors including public security, construction, transport, agriculture, and extractives. Net income for all the SOEs is around USD 13M; only a few are profitable. All SOEs are overseen and regulated by the Ministry of Finance and directly operated by specific ministries depending on the nature of the operations. The Law on State Owned Enterprises includes specific targets for R&D investment, social development measures, and employee profit sharing, but compliance is negligible.
The Afghan government is also a stakeholder in 13 state-owned corporations (SOCs), entities that have independent boards and are not operated or directly supervised by the government. SOEs and SOCs make up a small share of overall economic activity, although a few SOCs have significant market share in their sectors, including Afghan Telecom (Aftel), Ariana Afghan Airlines, and the electrical utility DABS (Da Afghanistan Breshna Sherkat).
The Afghan government continues to modify existing legislation and draft new laws to meet its commitments as it prepares to accede to the World Trade Organization (WTO). Government officials have expressed interest in reform of government procurement laws.
OECD Guidelines on Corporate Governance of SOEs
Afghanistan does not have a centralized ownership entity for SOEs.
Sovereign Wealth Funds
Afghanistan Economic Development and Investment