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Press Release
29 June 2008
Britain gives £30 million to project supporting Afghan businesses
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courtesy of Teun Voeten/Panos Pictures
Development Secretary Douglas Alexander was today (Sun June 29th) visiting Afghanistan, to see for himself development projects backed by Britain to support Afghanistan’s future prosperity.
At a meeting with business leaders and Government officials, Mr Alexander announced a partnership for the Afghanistan Investment Climate Facility (AICF) that will aim to raise $100 million to fast track changes in business rules and regulations to make it attractive for businesses to invest in Afghanistan.
Britain, through the Department for International Development, is providing £30 million ($60 million) to launch the initiative.
It brings together business leaders of Afghan corporations on a Management Board and empowers them to take the lead in improving the climate for investing and doing business in Afghanistan.
The United Kingdom will be working with companies such as Roshan (Afghanistan’s largest mobile phone company), independent broadcaster Tolo TV, the Aga Khan Development Network, plus the United States and Afghan Governments and future partners, to implement plans to reform and improve the way people do business in the country.
Mr Alexander said:
“To demonstrate our commitment to fostering economic progress in Afghanistan, I can announce to you today that the United Kingdom will provide £30 million to support the AICF to raise a total of $100 million in partnership with others.
“The long term future of Afghanistan – as for all countries – lies in the establishment of a successful, sustainable economy.
“We have already seen significant economic progress since 2001: average incomes have more than doubled, the economy has grown on average by 15% a year since 2002 and private sector investment reached $1 billion per year in 2006.
“Development of the private sector is the only way to provide jobs and income for the 65% of the Afghan population who are under 25 years old.”
The AICF will:
- Fund and support practical interventions to remove constraints to doing business in Afghanistan;
- Help the Afghan government establish business friendly policies, legislation and regulations;
- Improve the quality and capacity of institutions to administer the rules of the game;
- Facilitate improvements in infrastructure, for example in the energy sector, through Public Private Partnerships and improved regulation;
- Focus on access to finance, land and other priorities set by its Board.
Notes to editors:
- The AICF is a unique new independent legal entity funded by both the private and public sectors that will make Afghanistan a better place to do business
- In December last year the British Prime Minister Gordon Brown announced the initiative and pledged £30 million. He said: “When I was in Afghanistan and met local business leaders, President Karzai and I agreed a comprehensive plan - to be taken forward jointly by the Afghan and British governments and the Aga Khan Development Network - to attract private sector investment into the country and stimulate new businesses. A new Growth Fund, starting with an initial £30 million pounds from Britain, will kick-start the development of a basic legal and regulatory framework, build government capacity to involve the private sector in providing public services, and pilot business training programmes.”
- The AICF will fund and support activities that are owned and implemented by others rather than acting as the implementing agency.
- For further inquiries please contact DFID head of news James Hardy: +44 7834 845635 (accompanying the Secretary of State), or Gemma Blackburn in Kabul: +93 7994 83555, or the DFID duty press officer: 0207 023 0600
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