Reconstruction Aid - Sustainable Economic Development
Since 2002 Germany has provided more than 300 million Euro to improve the business environment and income generation in Afghanistan. Financial institutions such as the First Micro Finance Bank were established to facilitate access to credit, particularly for small and medium enterprises. Since 2002, over 600 kilometers of roads and numerous bridges have been built in Northern Afghanistan; 700 km of all-weather roads will be added in the coming years. In order to enhance regional and international trade, Germany and the United Arab Emirates fund the construction of a new civilian airport in Mazar-e Sharif, including Afghanistan’s first cargo terminal. Together with Australia, Germany also supports the Afghan civil aviation sector by setting up a country-wide air surveillance system. In addition to this, the recently established Regional Infrastructure Development Fund (RIDF) provides flexible funding for critical infrastructure projects in Northern Afghanistan.
Germany supports Afghan public and private economic governance institutions in developing their management and technical capacities. At the national level, German experts advise the Ministry of Commerce and Industry, they support the Export Promotion Agency of Afghanistan (EPAA) and assist the Afghan Chamber of Commerce and Industry (ACCI). In northern Afghanistan, Germany provides small and medium enterprises (SMEs) with business development services in order to improve local value chains. The New Baghlan Sugar Company has also been rehabilitated with German assistance.
The overarching objective of all these measures is to improve the conditions for private sector development in Afghanistan, to enhance the chances of Afghans in the labor market and to open up additional opportunities for legal income generation.