Afghanistan: Advancing trade (Phase II)

Summary

International trade is an important driver of growth and a means to facilitate Afghanistan's path away from aid dependency. As such, the Government of Afghanistan has prioritized trade, regional cooperation and private sector development as critical elements for its economic development strategy.

The Action, therefore, aims to unlock Afghanistan's trade potential by improving quality and standards- setting, strengthening export/investment promotion capacities, facilitating cross border trade including through removing regulatory and procedural barriers, supporting specific value chains and women’s participation in international business and trade.

In doing so, the Action is supporting the implementation of priority needs embedded in the Government of Afghanistan’s road map for export competitiveness: the National Export Strategy (NES). The NES, endorsed by the Government and officially launched in June 2018, was the flagship document of Phase I of the AAT project (2016-2019). As such, the Action is a follow-up intervention aimed at materializing the NES strategic vision to support trade competitiveness within the region.

The project's general objective (impact) is to foster a more inclusive and exports-led economic growth.

The specific objectives (outcomes) of the project are: 

• Specific objective 1:Strengthened business/investment environment to support regional economic integration and connectivity;
• Specific objective 2: Improved competitiveness and economic, social and environmental responsibility in agri-business and manufactured products value chains;
• Specific objective 3: Increased engagement of Afghan women in international/regional trade.

By delivering on the above specific objectives, the action will increase participation of Afghan MSMEs in international/regional trade in selected agri-business and manufacturing sector value chains.

By delivering on the above specific objectives, the Action will increase participation of Afghan MSMEs in international/regional trade in selected agri-business and manufacturing product value chains. Preliminary analysis and consultations have identified the following possible value chains for examination during the inception phase (but not limited to): 1) agribusiness (saffron, dried fruits and nuts, fresh fruits and vegetables, and 2) manufactured products (jewels and precious stones).

The Action will build on the results achieved within the project's Phase I.