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Agro-business Investment Opportunities in Afghanistan

agro-business-investment-opportunities-in-afghanistanWith a strong aptitude in agriculture and its geo-economical location, Afghanistan is becoming famous for being a good fit for cultivation.

According to reliable statistics, Afghanistan has 7.8 million hectares of agricultural land and only fifty percent of which is used.  Afghanistan has a further 1.9 million hectares of natural forests and 30 million natural grazing lands.

Furthermore, Afghanistan is a mountainous country and is very rich in water reserves—a critical necessity of agriculture.  There are over 200 rivers flowing from the vast chain mountains all over the country adding up to 75 billion cubic meters of potable water.  Among these rivers, three of them—the Kabul, Helmand, and Amu rivers—provide 17 billion cubic meters of water flow within a year.

Statistics indicate that the most important of the Afghan exports sent to the United States, Tajikistan, Pakistan, India and other countries are its agricultural products.  Afghan agricultural products constitutes the second biggest source of income with the first being the precious stones exports.  Among these agricultural products, the most are medical plants that bring in 20-22 million U.S. dollars.  The industry is still open for huge investment opportunities.

It has to be said that Afghanistan’s agriculture sector is still unexplored but it has a high potential for investment.  There has not been remarkable investment in this sector but the high potential of investments remains. For instance, the agro-farms built in Kabul or the stocks built in Herat and other provinces cannot accommodate the vast demand in this sector, thus indicating the need for more business and investment in agro-business.

Nowadays, almost every type of fruits, grains, vegetables and other agricultural products are produced in Afghanistan, but the country still lacks the ability to standardize producing these products and also produce more of its unique agro-products that are specialties to this country, such as seedless pomegranate, 64 types of grapes, and pine nuts.

In recent times an increasing number of domestic and foreign investors have indicated interest in investing in different sectors of investment in Afghanistan. The government of Afghanistan has now sped up its efforts to encourage investment in the agricultural sector.  These efforts were strengthened ever more when Afghanistan became a member of the WTO, and the Agriculture development project was commenced by the USAID with a budget of 100 million U.S. dollars.

 

About the author

Khalid Massoudi

Attorney at law and partner of Masnad Legal Consultancy - a Law Firm incorporated and provides legal services in Afghanistan, he is practicing law since 2011, and have expertise in Corporate Law, Intellectual Property Law and Tax Law of Afghanistan, he represents and provides legal advice to international corporations, entities and individuals within jurisdiction of Afghanistan."


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