UN Says Lack of Finance Is Major Barrier for Businesses in Afghanistan
The United Nations Development Programme has said that difficulty accessing finance is a major obstacle to the operation and growth of businesses in Afghanistan, a barrier that has particularly affected small and medium-sized enterprises and women-led businesses.
The agency said in a report released today, Thursday, 12 Sonbula, that to address this problem it has launched a programme called “Credit Guarantee” to help provide funding for small businesses, especially women’s enterprises.
According to the UN Development Programme, the scheme began in 2024 and has helped lenders, particularly banks, extend loans to more than 23,700 small and medium-sized businesses. The agency added that, as a result of the programme, jobs have been created for more than 47,000 people.
The report said the “Credit Guarantee” programme has so far mobilised more than $71 million in private capital. Ibrahim Tombi, project manager at the UN Development Programme, said the programme is based on “risk sharing.”
He explained that, under criteria set by the United Nations Development Fund, the private sector and banks are assured that they can support young people who have a business idea and motivation but do not have seed capital. According to him, the goal is for banks to lend more to businesses with growth potential.
The UN Development Programme also said that the bulk of the businesses supported by the agency are small and medium-sized enterprises led by women. It added that for millions of women in Afghanistan, starting a business has become one of the few ways to earn an income, and UN support programmes are trying to create the conditions for this.
According to the agency, from 2021 to 2025 the United Nations supported a total of 89,000 formal and informal businesses. Based on these figures, 91 percent of these businesses, nearly 81,000, are led by women.
