KABUL (Kubha News) – The United Nations Development Program (UNDP) conducted a survey on women entrepreneurs in Afghanistan to assess their challenges and work conditions.
Out of the 3,100 entrepreneurs Afghan women surveyed, 41% reported taking loans to carry out their businesses, as revealed by UNDP officials.
However, a mere 5% of these women navigated the stringent requirements of banks and financial institutions to secure loans, with 95% resorting to borrowing from friends and family to sustain and grow their businesses.
Stephen Rodriques, UNDP’s Afghanistan Resident Representative says: “Women have long been the driving force behind the welfare of households in Afghanistan and play a crucial role in sustaining local economies.They need international support … the future of Afghanistan depends on them.”
Although the Taliban government imposed restrictions on women’s participation in governmental and most NGOs in 2023, it has yet to formally limit women’s involvement in trade and investment.
However, 70% of respondents noted Taliban-imposed barriers, such as restricted access to local markets and limitations on travel without male accompaniment, hindering their business growth within Afghanistan.
Zarqa Muhebi, leading the Sadaf Tailoring workshop in Balkh province, shared her experience of building her business with a $34,000 loan from a financial institution.
Mrs. Muhebi told to Kubha News: “I established the tailoring workshop in 2017 and paid off its loan by 2022. It was doing well in the first five years because we had both domestic sales and merchants exporting our products abroad. However, now there is no domestic market. Although there is still foreign demand, the influx of many female workers and tailoring workshops has reduced our revenues.”
Despite repaying the loan, Mahbubi faces challenges in paying her employees’ salaries due to declining sales, especially with reduced local demand and increased competition in the tailoring industry.
Similarly, Zarmina Khpelwak, the owner of Gandi Afghani Tailoring workshop in Kabul, expressed frustration over the absence of loan opportunities. Khpalwak mentioned her desire to expand her business globally, including representation in Germany and the United States, but has been unable to secure funding.
Ms. Khpelwak told to Kubha News: “There is no market inside Afghanistan; traders give us the runaround, and our production is shipped to the United States, Australia, and Europe. I wanted to establish branches for Afghan Gand in Germany and the USA myself, but no one provided me with a loan.”
We asked Afghanistan Central Bank regarding women entrepreneurs’ loan issues remained unanswered by Haseebullah Noori, the bank’s spokesperson.
Previously, the Taliban government’s Ministry of Economy had expressed support for women’s investment and business endeavors, calling on international donors to continue supporting women’s economic empowerment initiatives.