Outlook

The private sector of the economy in Afghanistan has been newly invigorated after decades of neglect, dormancy and regression. New ventures are being established in trading, industry, agriculture and mining. Moreover, chambers of commerce and industry as well as trade associations are being organized. Whereas the former contribute towards enhancing an economy’s productive capacity the private sector chambers and associations give a common voice and direction to the sector and represent the private sector in various forums including local, regional and international. 

Significant growth has been witnessed in the sectors of road building, construction, housing, electricity, telecommunications, transportation, aviation, water supply, banking, media, hotels and guest houses, education, health, rural development, agriculture, agro-based businesses irrigation, and some other sectors. Sectors like insurance, leasing, development banking, accounting and auditing, legal services, leasing, marketing, advertising and consultancy, large-scale industries and small and medium enterprises, (SMEs), are still in infancy thus characterizing the low base from which the Afghan economy is expanding. Despite this low base, the economy’s fast pace of growth affords significant investment opportunities to local and foreign businessmen as well as the more dynamic and business oriented members of the worldwide Afghan Diaspora

Over the last few years the Afghan economy has been growing very rapidly. The country’s GDP has been increasing at a rate of 15—20% per annum from January 2002 to December 2005. An improved security situation and generous assistance from the international community have been instrumental in making these achievements possible. 2006 is expected to be another fruitful year for the Afghan economy as many large economic and infrastructural projects, initiated in past years, will either be completed or will be approaching completion. Many foreign organizations are already working in the country and others are also interested in having a presence here.

This increased level of interest in Afghanistan promises further years of brisk economic activity and rapid growth. Kabul Group is positioning itself to offer pertinent and timely advise on macro and micro economic matters and business issues. Being a local organization we can draw on our local knowledge and personnel to help organizations understand the country better so that they are able to operate efficiently and profitably in this rapidly evolving economic environment.