MIDAS
Mining Investment and Development for Afghan Sustainability
SMEs Assessment Results
Presenter: Mohammad Ajmal Ahmadzai and Abdul Hakeem Montazir
MIDAS
The objective of the MIDAS project is to support and facilitate
the development of the mining sector in Afghanistan
Three components:
1. Component I: Legal and Policy Framework
2. Component II: Capacity Building of the MoMP Employees
3. Component III: Private Sector Development
Component III
Focuses on the private sector development requirements
which include fostering a strong enabling environment
for SMEs to support the extractives sector. Under
Component III a SME survey/assessment was
administered to identify the existence and capacity of
SMEs that are typically necessary to support the mining
sector.
SME Survey Key Focus Areas
SMEs included:
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Business Consulting/ Support Services
Construction
Geo-sciences
Transportation
Mining operations and community support services
The interviewees were asked about their views on new opportunities
and employment expansion related to the mining sector
SME Survey Additional Areas of Focus
Also included:
– Gender assessment which identified the role of women in various
SME functions
– SME accessibility to financing evaluated
– Inquired on SME supporting mechanisms such as the availability of
business institutions such as Chambers of Commerce and typical
business regulatory processes (such as if the business is registered)
This information was gathered to provide a project baseline and to identify strategic
interventions that Component III will design and implement to support a strong and
robust Afghan mining sector
Survey Structure
Locations:
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Bamiyan – Hajigak – Iron Ore
Badakhshan – Ragh – Faizabad & Baharak Gold
Sar-i-Pul – Balkhab – Copper
Parwan Valley - Silver
Ghazni – Zarakhshan – Copper and Gold
Baghlan – Qara-Zaghan – Gold
Herat – Shaida – Copper
Helmand – Chaigi Hills – Gold and Copper
Takhar – Samti – Gold
Panjshir Valley – Silver
Survey Administration Details
– 9 Teams of 4 people of which 1
was a women
– On average there were 30
surveys in each location
– 270 survey in total analyzed
– Teams trained in Kabul and in
the field
Key Findings Are….
• Construction – The construction area is well
developed with people having experience in large
scale construction initiatives, access to good
equipment, and know-how. We saw that there
were few applications to the mining area, however,
with some training, companies could adjust to
mining needs.
• Transportation - The transportation area is fairly
well developed but there are many SMEs but the
scale is smaller than that of the construction subsector.
Key Findings with respect to Business are…
• The construction and transportation sub-sectors would
benefit from accounting and business training, training to
adapt to the mining sector, occupational health and
safety training, training for improving of skills
(certifications for western investment) to ensure quality
standards.
• The business consulting services skill set does exist but
primarily in places like Kabul. They are willing to work in
the regions and will do so on demand. These are more
sophisticated skills and could develop over time in the
regions when there is enough local demand. Support for
large center or Kabul based companies to train regional
employees or set up branch offices would be useful.
Key Findings Regarding Community Services
Are…
• Mining operations and community support services do
exist, but their level of service and quality is lacking.
These SMEs will require equipment, perhaps through a
grants under contract program (GuC), technical
assistance, training, and linkages to markets or
demand to really develop and prosper.
Recommendations
Increased stakeholder awareness and engagement by
training the following:
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What is mining?
What are the stages of mining?
What are community needs? How to determine these?
Understanding the role of government
Understanding your rights
How to negotiate with mining companies?
How to promote your region?
Recommendations
Access to Finance:
• Building the capacity of banks to provide
products to meet the needs of SMEs in
mining
• Dedicate funds for SME development
• Train SMEs to understand their business
and apply for local forms of financing
through business planning and other
training
Recommendations
Access to Technology:
• Introduce new technology such as
machinery, equipment, and tools to
increase the efficiency, profitability and
safety of mining work and mining support
services.
Recommendations
Training:
• Improve the capacity of training providers to sustainably develop
SMEs now and into the future to support the growing mining sector of
Afghanistan.
• Provide on the job training to SMEs to improve their use of
technology and business know-how to increase their effectiveness,
efficiencies, and profitability.
Recommendations
Business Support Services:
• MIDAS will help SMEs to create business plans to better understand
their business and to be able to apply for local financing
• MIDAS will promoting an enabling mining environment through good
policies that support the development of the private sector and SMEs
to contribute to the mining sector
• MIDAS will support SME creation and expansion through the
provision of improved business support services, access to finance
and technology, and training
THANK YOU!
Questions?