Post-conflict environments are extremely complex. In modern Afghanistan, the need for development is closely linked to a call for security. Without greater security, investors will not risk driving development. The future of the Afghan economy depends on pursuing safety and development simultaneously and creating the conditions needed for self-reliance.
The Afghan people must begin working at a young age to support their families. Despite high illiteracy rates and limited access to education, the Afghan workforce is energetic and industrious. However, this workforce must have access to opportunities for skill development and investment capital to create and grow businesses. This situation has created ideal conditions for impact investing.
The Afghan Ministry of Commerce and Industries and the Delhi Investment Summit on Afghanistan created a list of Investment Opportunities in Afghanistan in 2012. This document, which is continually updated and made available online, lists 25 markets available for investment in several different sectors, including energy, small industry, agribusiness, and transport. In each of these major sectors, a few domestic and foreign investors have made initial moves, but virtually every market remains underinvested.
The biggest hurdles to more direct investing remain insecurity and weak governance, but the Afghan government has partnered with many international communities to address these issues quickly and effectively. The nation has adopted a progressive constitution and built significant military and civilian institutions. One initiative, the Afghanistan Investment Support Agency (AISA), works directly with foreign and domestic investors to help them create and maintain a business. Laws about partnerships, arbitration, competition, consumer protections, and company formation have addressed many of the problems that formerly discouraged investment.
Geographically, Afghanistan stands as a major hub between Central Asian and the Middle East, two regions of the world with rapidly growing economies. Afghanistan now boasts one of the most investor-friendly economies in the region with little competition and great potential for new trade networks. These investment opportunities are the key to rebuilding Afghanistan and reestablishing it as a major economic force.