News / Asia

Afghanistan Is Fertile Ground for Investment

With security improving after decades of armed conflict, opportunities abound in one of world's fastest-growing economies

Raymond Thibodeaux

The war in Afghanistan has not kept a growing number of multinational firms from investing there.  Of the 800 foreign companies licensed to do business in Afghanistan, only about 10 percent are from the United States, leading some Afghans say there are a lot of American boots on the ground there but not enough American wing-tips, a common style of shoe worn by businesspeople.

In this street market, many shops sell hand-woven carpets, lapis and sky-blue burqas - the billowy head-to-toe covering worn by many Afghan women.  From the time before Alexander the Great conquered this region, Herat has been a hub of commerce, linking the Middle East, Central and South Asia.

But three decades of armed conflict have resulted in many local businesses shutting down and investors being scared off. That is according to Shafiq Ahmadi, a director for the Afghan Investment Support Agency - the country's business-licensing body.

He says the main security problem was the kidnapping of investors and rich people in Afghanistan, specifically in Herat.

Ahmadi says the Taliban and criminal gangs flourished in the foothills and farms around the city - that is until U.S.-led coalition troops started making inroads here more than a year ago.


View Larger Map He says that, with security getting better, we can see some of the effects.  He says the industrial parks, where 50 percent of the companies closed, are now starting to reopen.

That is a start, but Ahmadi says many of Herat's wealthiest entrepreneurs have not come back from cities as far flung as Dubai, London and San Francisco, where they fled the fighting.

That has created opportunities for people like Andre Mann, who operates The Great Game trekking company, one of only two in the country. He says it is rare to meet other expats with business start-ups, especially Americans.

"You run across these people once in a while, but there [are] not many Americans doing that," Mann said. Do you think many Americans want to come and do business in a war-torn country?"

An avid hiker and mountain climber, Mann says the country's natural beauty compelled him to move here and start his trekking company. But he says there are hazards to doing business in a conflict-prone country.

"Afghanistan is frankly a tough place to do business.  And, there are other places that are a lot easier to invest in, where you don't have war risk, for one, and you don't have the corruption issue like you do here," Mann said.

Corruption was one of the big issues President Obama addressed during his recent visit to Afghanistan.  But many here say corruption is entrenched in Afghanistan's economy, which, at about 15 percent a year, is one of the world's fastest-growing, according to World Bank estimates.

A growth rate like that is bound to attract entrepreneurs.  In Herat, small-scale businesses are starting to crop up:  a Belgian café on the city's main street; a couple of Indian restaurants; a German machine repair shop. And there are many shops selling burgers, pizzas and fried chicken - often owned by Afghans returning from abroad, known here as Half-Ghans.

On a larger scale, a US-based company launched a cellular phone service here.  Coca-Cola opened a $25 million bottling plant near Kabul. Nearby, a Chinese firm plunked down $3 billion for a copper mine, one of the world's largest.  German traders are sending about $200 million in goods to Afghanistan, up from about $21 million in 2000.

Brad Hansan, the U.S. senior civilian representative in Western Afghanistan, says the security improved in this western province and that the United States is helping revive the business community.

"There are efforts under way to try to have foreign businesspeople come to Herat and see for themselves the opportunities here and the openness of many Afghan entrepreneurs for partnerships with foreign businesspeople to help expand their businesses," Hansan said.

He says many businesses - especially in the farming sector - are hampered by the country's lack of infrastructure.

"It has a fairly well-educated, literate population. It has a long history of trade and entrepreneurship going back centuries. And, it has water and electricity most of the time," Hansan said.

On those terms, he says Herat is better prepared for business than other parts of the country.

Rahim Walizada - a carpet and handicrafts dealer in Kabul - exports many of his products to U.S. retailers such as ABC Carpet & Home. Still, he says he rarely sees American buyers in Kabul.

"I see many Europeans and a lot of Indians, but not many American companies here.  We are surprised they are not coming here."

He says many Afghan entrepreneurs bristle when foreign retailers buy Afghan-made products from neighboring Pakistan, seen as a safer place for markets. He wants foreign retailers, especially American ones, to buy directly from Afghan suppliers.

"They should come. Kabul is a beautiful city, I would say. Afghans have great hospitality. And they [American businesspeople] should come, we're ready to do business with them," Walizada said.

Afghan officials say they need to raise at least $15 billion in the next decade to rebuild the country.  Hansan says the benefits of investing in Afghanistan are not only profits, but providing jobs and, with them, a chance at stability and peace for the country.

You May Like

Photogallery Pistorius Sentenced, Taken to Prison

Pistorius, convicted of culpable homicide in shooting death of girlfriend Reeva Steenkamp, will likely serve about 10 months of five-year sentence, before completing it under house arrest More

UN to Aid Central Africa in Polio Vaccinations

Synchronized vaccinations will be conducted after Cameroon reports a fifth case of the wild polio virus in its territory More

WHO: Ebola Vaccine May Be in Use by Jan.

WHO assistant director Dr. Marie Paule Kieny says clinical trials of Ebola vaccines are underway or planned in Europe, US and Africa More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid