The Private Sector in Afghanistan Thomas Muenzberg Deputy Commercial Officer U. S. Embassy, Kabul Afghanistan
Topics Transition
impacting the private sector Current state of business in Afghanistan How we can help mobilize your efforts
The American Chamber of Commerce, Afghanistan—April 2013
• After 30 years of conflict, a vibrant private sector is emerging in Afghanistan. • The signing of the strategic partnership agreement in May of 2012 greatly improved the business environment. • Though December 2014 is the stated completion date, the draw down of Coalition forces is well under way. GDP growth…FY 2012 12%, with positive GDP growth forecast for 2013, 2014. • The national elections in 2014 will be critical—the business community is participating. They express cautious optimism. • Afghan Security Forces in lead for 100% of the country. • The definition of the coalition “foot print” will be an critical milestone.
We are seeing significant and positive business trends‌ International Brands are taking hold Wireless Communications include 3G and Beyond
Modern Shopping Centers are Becoming more commonplace
Airlines are expanding to serve growing domestic and international needs
Commercial Centers are increasingly sophisticated and busy
New Industries are Being Established to fill Local Demand
Agribusiness—Ice Cream Factory in Herat Logistics Value Chain--cold food storage facility--Kabul
Consumer Products—Shoe Construction Materials— factory in Plastics Plant in Kabul Kabul Construction Materials—Steel plant in Herat
$220 Million Pepsi Plant
Major Construction is on the Rise
The New Kabul City project is a major move forward •
Public Private Partnership project to develop a massive planned unit development in phases over 15 years.
• Project will address an estimated doubling of the population of Kabul by 2025. • The project will include industrial and agriculture zones. • First phase signed on 4 September 2013…13,000
We Also See Significant Challenges Infrastructure…roads and utilities are underdeveloped. Personnel….great shortages of trained, qualified and vetted personnel in the trades and professional ranks. Government…the government is still has insufficient capacity in many critical functions. Corruption…is an ongoing problem. Security…a necessary cost of doing business
U. S. Department of Commerce Mission in Afghanistan Expansion
Imports/Exports Support for Direct Investment
Capacity
of Trade and Investment
Building
Human Capital Institutions
We are here to help you become a part of the Afghan story Networking with local businesses—match making Vetting potential partners Assistance in the local business licensing process Market information Trade events Your partner in Kabul muenzbergtm@state.gov, koenigew@state.gov