Insecurity, lack of infrastructure and electricity cause business decline in Afghanistan

KABUL (TCA) — A survey by the Afghanistan Chamber of Commerce and Industry (ACCI) shows that problems facing Afghan businesses continue and optimism for investments in the country has declined, TOLOnews agency reports.

According to the survey for the past three months of this year, agriculture is the only sector that has experienced growth in Afghanistan, the ACCI said.

In the past three months, the level of recruitment of workers in the sectors of commerce, industry, building and services has decreased and many companies are dismissing their employees because of the drop in the market demand for their products.

“The Government over the past two years has not distributed even one meter of land to factory owners. Due to problems in the mines ministry, currently over 100 factories processing marble stone are slumping,” said ACCI CEO Atiqullah Nusrat.

According to the survey, growing insecurity and the lack of infrastructure and electricity are the main reasons for the business decline in the country.

“Corruption exists and although the business license distribution process became easier, numerous problems still exist,” ACCI Deputy Head Khan Jan Alokozay said.

Afghan manufacturers say that power shortages are a major challenge in this sector.

“The power supply is not stable and we cannot use the electricity because we are afraid that our machines may burn out,” said Mohammad Zahir, a worker at one of the factories.

The ACCI said that the lack of bilateral and multilateral transit and trade agreements with a number of countries in the region has slowed down Afghanistan’s trade with these countries.

Sergey Kwan


Sergey Kwan has worked for The Times of Central Asia as a journalist, translator and editor since its foundation in March 1999. Prior to this, from 1996-1997, he worked as a translator at The Kyrgyzstan Chronicle, and from 1997-1999, as a translator at The Central Asian Post.
Kwan studied at the Bishkek Polytechnic Institute from 1990-1994, before completing his training in print journalism in Denmark.

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