This scoping study was undertaken to examine the key challenges,
opportunities and effectiveness in funding small and medium enterprises
(SMEs) and providing advisory support and business skills development in
Afghanistan. This included an assessment of peer-reviewed and grey
literature, including the official documents prepared by the Government
of the Islamic Republic of Afghanistan (GIRoA) and the donors,
conducting in-country research, and organising stakeholder meetings and
interviews to identify gaps and potential opportunities in key
agriculture and non-agriculture sectors.
Following the introduction, section 2 details the methodology for
undertaking desk-based and in-country research, as well as the risk
management approach. Section 3 reviews the findings from the literature
review and desk research; and then in-country field research involving
stakeholder engagements and informant interviews. Section 4 focuses on
opportunities for donor-sponsored interventions. It discusses the
criteria used when selecting options, provides a menu of options, and
describes these options. The final section provides an overall
conclusion to the study, based on the core findings and makes
recommendations to DFID regarding the options it should consider for the
The five options recommended for further consideration are:
- Capacity building to existing or new Afghan institutions providing
private sector development (PSD), financial sector development and
business enabling environment support.
- Capacity support to Da Afghanistan Bank, with a focus on supervision
and regulation of financial sector
- Support donor-managed and/or mutual guarantee schemes.
- Afghanistan Business Innovation Fund (ABIF) 2.
- Stocktaking exercise to understand needs of microenterprises and
Coffey International Development. Final Report. Scoping the Need for Improved Access to Funding, Advisory Support and Business Skills Development for SMEs in Afghanistan. Coffey International Development, London, UK (2014) 131 pp.
Final Report. Scoping the Need for Improved Access to Funding, Advisory Support and Business Skills Development for SMEs in Afghanistan