Afghanistan has great potential for small and medium-sized business growth. Economic development is driven by these smaller enterprises, making them a vital part of the country’s continued stability. Afghanistan’s potential for growth in this sector of the economy was demonstrated by the success of a recent program led by DAI, a private, U.S.-based development company. Over a period from 2006 to 2012, the program instituted 50 Global Development Alliances, which represented an investment of $100 million from private partners. Overall, the DAI program largely exceeded its goals by creating significantly more local small business partnerships than expected.
The DAI project created 95,000 jobs and allowed for a greater participation in international trade fairs among Afghan companies. These fairs produced $45 million in sales for the participating small and medium-sized businesses. New business associations, many of them focused on supporting women entrepreneurs, provided forums for budding business leaders to learn as well. Looking forward to the future, the project also facilitated internship experiences for 2,000 students, about 500 of whom were women. Students also had the opportunity to participate in a Young Professional Mentorship Program.
To encourage the development of small businesses, DAI offered technical training, as well as support for technology and on-the-ground assistance. The company targeted some of the industries that will prove most important to Afghanistan’s continued economic development, including the agribusiness, gemstones, carpets, marble, and business services industries. In the program’s final year, DAI identified key districts throughout the country for business growth and facilitated working relationships between developing businesses there.
The success of the DAI program points to Afghanistan’s great potential for the future and the strong foundation that the country already possesses for continued growth. The alliances and partnerships built by the program will continue to benefit the country for years to come.