OVERVIEW

Assistance in Building Afghanistan by Developing Enterprises (ABADE) worked with the private sector to strengthen its productivity and help enterprises sustain growth and create jobs. ABADE’s objectives were to increase domestic and foreign investment, stimulate employment, and improve sales of Afghan products.

ABADE’s public-private alliances with Small and Medium-sized Enterprises (SMEs) helped reduce the risks of business expansion. The project coordinated with other USAID programs to improve the business-enabling environment, develop a skilled workforce, and facilitate access to finance.

ACTIVITIES

• Small and Medium Enterprise Public-Private Alliances: Provided capital to existing SMEs or business alliances through a competitive application process. Afghan business partners were required to invest at least twice USAID’s contribution in various manufacturing sectors.
• Innovation Public-Private Alliances (PPA): USAID aimed to stimulate innovation by providing capital for new business ideas through a competitive application process. Afghan business partners were required to invest an amount at least equal to the USAID contribution.
• Technical Assistance and Business Advisory Services: ABADE provided technical assistance and business advice to SMEs, sub-award recipients, and other key stakeholders. The focus was accounting, marketing, access to finance, achieving quality standards, and using specialized production machinery. The activity specifically targeted female entrepreneurs and ABADE’s PPA partners.
• Business Enabling Environment: ABADE worked with the Ministry of Commerce and Industries to improve Afghanistan’s business climate by addressing regulatory and procedural barriers that affect private enterprise’s ability to compete. The program worked with businesses and the Afghan government to create industry-specific action plans for agribusiness, marble, gemstones and jewelry production, construction materials, carpets, and women-owned small and medium enterprises. ABADE also assisted stakeholders with implementation of priority initiatives identified in their action plans.

ACCOMPLISHMENTS

• Nearly $300 million in total investments generated — the private sector provided 86 percent of the money
• Near 300 public-private alliances formed, 29 of which were Innovation Public-Private Alliances.
• About 106 percent average increase in sales attained by PPA-SMEs
• Supported 520 SMEs; over improved management practices and over 280 invested in improved technologies with ABADE’s assistance
• Created approximately 18,000 full-time jobs
• Provided alternative workplace models for over 60 women initiatives, which involved working from home, providing off-site services, and working in all-female facilities
• Trained more than 270 women in high-demand skills in information and communication technology, business systems, marketing and advertising
• Identified and addressed six business constraints in sectoral action plans