The construction sector in Afghanistan has been one of the main
beneficiaries of the huge investment made on civilian and military
projects in the last decade by the international community. During this
period, many military bases were constructed, thousands of kilometres of
roads have been constructed and rehabilitated, numbers of schools and
health facilities have increased significantly and improvements have
been made to all other infrastructures such water, power, irrigation
schemes etc. The GDP of the country has quadrupled since 2002.
Currently, Afghanistan is in transition. Presence of foreign troops and
international NGOs is decreasing. The decrease in foreign military
presence and the transfer of responsibility for the security of the
country to the Government is creating significant uncertainties in all
sectors of the Afghan economy. This is true in the construction sector
which is facing serious problems as demand decreases resulting in
significant layoffs and a downward decline of unit rates.
To mitigate the situation, the construction sector has to shift from
donor financed projects to more sustainable market based initiatives.
The purpose of this paper is to identify and propose market based
sustainable schemes to lessen the impact of reduced demand for the
sector. The proposed actions should also enable broad based and
inclusive participation of the different parts of the society and
creation of significant job opportunities.
This report has been produced for Evidence on Demand with the assistance
of the UK Department for International Development (DFID) contracted
through the Climate, Environment, Infrastructure and Livelihoods
Professional Evidence and Applied Knowledge Services (CEIL PEAKS)
programme, jointly managed by DAI (which incorporates HTSPE Limited) and
IMC Worldwide Limited.
Ghiorghis, T.G. A rapid desk study: Afghanistan &#8211; current status and future prospects for the construction sector. Evidence on Demand, UK (2014) iii + 21 pp. [DOI: 10.12774/eod_hd.december2014.ghiorghistg]