EU, IFC launch €5m programme to support Afghan private sector

KABUL (Pajhwok): The European Union has signed a new €5 million administration agreement with the International Finance Corporation (IFC), a member of the World Bank Group (WBG), to implement Afghanistan’s Private Sector Stabilisation Programme.

The programme represents the latest example of EU–WBG collaboration in Afghanistan, aimed at stabilising the economy and creating livelihoods through private sector-led inclusive economic recovery, the EU said in a statement.

It said the 42-month initiative will focus on improving the business environment, supporting small and medium-sized enterprises, and generating sustainable employment.

The statement added that the programme will prioritise expanding economic opportunities for women, young people, returnees and internally displaced persons (IDPs), who have been most affected by Afghanistan’s economic crisis.

According to the EU, the initiative will work closely with private sector actors to encourage entrepreneurship, attract private investment, and strengthen key value chains across the economy.

Veronika Boskovic Pohar, EU Chargé d’Affaires to Afghanistan, said: “This initiative is part of the European Union’s comprehensive support for the Afghan population, from immediate humanitarian response to a long-term approach to strengthening the Afghan private sector. This programme is important as it promotes job creation and entrepreneurship in strategic value chains, particularly for Afghan women, youth, and returnees.”

kk/ma