EU Allocates €196 Million to Support Afghanistan’s Small and Medium Enterprises
The European Union has announced the implementation of projects totaling €196 million to support small and medium-sized enterprises (SMEs) in Afghanistan. These programs aim to create job opportunities and strengthen the country’s private sector.
Veronika Boskovic Pohar, the EU Chargé d’Affaires in Kabul, told Ariana News that these initiatives provide employment opportunities for skilled workers, women, youth, and returnees. According to her, €156 million of this budget is dedicated to projects focused on sustainable livelihoods, job creation, and women’s economic empowerment. Additionally, a separate €40 million program will soon be launched to provide special support to returnees.
She added that the EU is gradually shifting its approach from emergency humanitarian aid towards sustainable, long-term solutions, particularly for internally displaced persons and those returning to the country after years of migration.
However, EU officials emphasized that alongside international support, the Taliban administration bears responsibility to create suitable conditions for economic growth and free operation of the private sector. With ongoing restrictions on women’s work and other administrative challenges, economic activists warn that without a favorable and predictable environment, fully utilizing these funds will be difficult.
Coinciding with the International Small and Medium Enterprises Day, the United Nations has stated that SMEs account for over 90% of the world’s businesses and play a crucial role in job creation and economic growth. Stéphane Dujarric, the UN spokesperson, emphasized the necessity of stronger investment, innovation, and sustainable industrial development to address economic challenges and build resilient economies.
Afghan private sector representatives and economic analysts also believe that expanding support for SMEs can accelerate job creation, ease economic pressures, and provide a foundation for sustainable long-term development in the country.
