The European Union, in close collaboration with the International Finance Corporation (IFC)—the private sector arm of the World Bank Group—has launched a new €5 million program aimed at stabilizing Afghanistan’s private sector and creating sustainable job opportunities.
Kabul 24: Under the recently signed agreement, the funding will support the Afghanistan Private Sector Stabilisation Programme, which focuses on strengthening small and medium-sized enterprises (SMEs), promoting entrepreneurship, and improving access to financial services.
This initiative is part of broader EU-World Bank Group cooperation to foster inclusive, private sector-led economic recovery in Afghanistan.
It places special emphasis on the economic participation of women, youth, returnees, and internally displaced persons—groups hardest hit by the ongoing crisis.eeas.europa.eu
The European Union launches with IFC a €5 million program to support the Afghan private sector
The program is set to begin next month and will run for 42 months (three and a half years). Its primary focus areas include:Strengthening coordination and advocacy for the private sector;
Building capacity for SMEs and startups, particularly those led by women, returnees, and displaced individuals;
Enhancing financial inclusion and access to banking services;
Mobilizing private investment to create jobs in key sectors;
Boosting women’s economic participation through increased private sector involvement.
Veronika Boskovic Pohar, Chargé d’Affaires of the EU Delegation to Afghanistan, stated: “This initiative demonstrates the European Union’s comprehensive support for the people of Afghanistan—from immediate humanitarian aid to long-term economic recovery.”undp.org
Khawaja Aftab Ahmed, IFC Regional Director for the Middle East, Pakistan, and Afghanistan, emphasized: “This agreement reflects our shared commitment to supporting Afghan entrepreneurs.
Strengthening businesses, even in today’s challenging environment, is a practical way to protect livelihoods and rebuild the economy with dignity.”Amid Afghanistan’s severe economic crisis, widespread unemployment, and limited financial access, the EU hopes this investment will reduce reliance on humanitarian aid and promote sustainable growth.
