Afghanistan - Market OpportunitiesAfghanistan - Market Opportunities
- Business opportunities are largely driven by Afghanistan's need to renovate its infrastructure, which was weakened by years of war and neglect. Substantial opportunities for U.S. firms have typically been linked to military organizations and donor and international finance institutions (IFIs), including the World Bank and Asian Development Bank, that fund reconstruction efforts. Companies are advised to monitor donor and IFI programs for current potential opportunities.
- As U.S. forces draw down and donor nation funding of infrastructure projects diminishes, business opportunities will be found within the Afghan private sector and through Afghan government funded projects.
- The security economy generates significant demand for goods and services, equipment and operations and maintenance of the national army and police forces.
- Agriculture remains a strong market driver with significant opportunities in agribusiness, agriculture distribution, and infrastructure. However, Afghanistan’s export of fresh produce accounts for only 6 percent of total trade due to Afghanistan’s limited agriculture and food processing infrastructure, including a lack of cold and dry storage facilities.
- In the past 5 years, services have contributed about half of GDP output. The most dynamic services subsectors include: information and communications; technology, finance, and insurance; and transport and construction. Although growth in the extractive industries sector was minimal, recent estimates of mineral deposits and natural resources ensure this sector will play a prominent role in Afghanistan’s economic growth over the medium to long term. Afghanistan has been granted an extension to achieve compliance status with the Extractives Industries Transparency Initiative (EITI). The Afghan government will send a strong, positive signal to potential mining investors if it reaches EITI compliance standards by the new deadline of December 20, 2015.
Afghanistan Trade Development and Promotion