This information is derived from the State Department's Office of Investment Affairs' Investment Climate Statement. Any questions on the ICS can be directed to
Last Published: 11/2/2016

Afghanistan is still working to accede to the World Trade Organization and does not adhere to the agreement on Trade-Related Investment Measures.

Investment Incentives
Afghanistan has no active incentive program.

Two sectors that require local employment are mineral extraction and electrical power. There are no existing government-imposed conditions on investment, beyond the procedures required for establishing or acquiring a business. There are no discriminatory export or import policies affecting foreign investors

Language in the Public Procurement Law of 2005 on government procurement favors domestic producers. That law specifies that procuring entities are obliged to procure goods, works, or services produced/furnished domestically, provided that the price of domestic procurement is not higher than imported procurement by a percentage set between five and 10 percent. CLDP and others are continuing to work with Afghan counterparts on how to improve the procurement law; the Public Procurement Law of 2015 has been passed by the Afghan Lower House and is still awaiting approval by the Upper House. Current drafts still retain a preference for national sources and domestic products.

Businesses report that they find it very difficult and time consuming to obtain visas for tourist passport holders coming to Afghanistan for business reasons. Before it will issue a visa, the Afghan government requires proof that the company the applicant represents is licensed in Afghanistan and that non-Afghans working for the company have work permits. In order for employees to obtain a work permit, they must have a valid Afghan visa.

Foreign firms have also reported difficulty renewing visas for third-country nationals working in Afghanistan.

Data Storage
The Afghan government does not require the use of domestic content in goods or technology related to data storage. There are no requirements for foreign IT providers to turn over source code and/or provide access for surveillance purposes. The Ministry of Communications and Information Technology does not have domestic data storage requirements.

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Afghanistan Economic Development and Investment Law