Ministry of Commerce and Industry
Implementing Afghanistan’s SME
Development Policy: The Women’s
SME Action Plan
April 2014 – March 2017
Table of Contents
Table of Contents ............................................................................................................... i
List of Acronyms ............................................................................................................... iv
Executive Summary ........................................................................................................... 1
Action plan objectives…………………………………………………………………………………………..1
Recent development and current status……………………………………………………………….2
Priority problems and constraints…………………………………………………………………………3
Growth prospects and emerging opportunities…………………………………………………….4
Keys to success..……………………….………………………………………….……………………………..…… 5
Increasing SME opportunities for women in Afghanistan's principal industry sectors ………..6
Agribusiness…………………………………………………………………………………………………….…….9
Carpets……………………………………………………………………………………………….…..……….……10
Construction………………………………………………………………………………………………….………10
Jewelry and Gemstones………………………………………………………………………………….……..11
Marble…………………………………………………………………………………………………………….……..12
Emerging Opportunities…………………………………………………………………………………………12
Cross- Sectoral WSMEs SWOT Analysis…………………………………………………………………..14
Strategy and Priorities for Improving Competitiveness ..................................................... 15
Specific development priorities and actions needed………………………………………………..15
Stakeholder roles in implementing the action plan and sources of assistance…………16
Recommendations for action plan implementation.......................................................... 18
Summary of Priority Problems and Actions ...................................................................... 21
Annex 1: Overview and Current Status of Programs for Women in SMEs
Annex 2: Action Plan Process Graph
Annex 3: Sample – Implementing the Action Plans – Working Group and Task Force Roles
Annex 4: Sample – Task Force Activities List
ii
This action plan was prepared with the support of the American people through the United States
Agency for International Development (USAID). The contents of this action plan do not
necessarily reflect the views of USAID or the United States Government.
iii
List of Acronyms
(To be updated!)
AAIP
Afghanistan Agricultural Input Project
ABADE Assistance in Building Afghanistan by
Developing Enterprises
ACCI Afghanistan Chamber of Commerce
and Industry
ACE
Agricultural Credit Enhancement
Program
ADF
Agricultural Development Fund
AESP Afghanistan Engineering Support
Program
AISA Afghanistan Investment Support
Agency
ANSA Afghanistan National Standards
Authority
ASMED Afghanistan Small and Medium
Enterprise Development
CSO
Central Statistics Office
EPAA Export Promotion Agency of
Afghanistan
FACT Federation of Afghanistan Craftsmen
and Traders
FAIDA Financial Access for Investing in
Development of Afghanistan
GoIRA Government of Islamic Republic of
Afghanistan
I-ANDS Interim Afghanistan National
Development Strategy
ICT
iv
Internet Communication Technology
LEAD Leading Entrepreneurs for
Afghanistan Development
MAIL Ministry of Agriculture, Irrigation and
Livestock
MOCI Ministry of Commerce and Industry
MOF
Ministry of Finance
MOU Memorandum of Understanding
MRRD Ministry of Rural Rehabilitation and
Development
NAPWA National Action Plan for Women in
Afghanistan
OPIC Overseas Private Investment
Corporation
PPA
Public Private Alliance
TIFA Trade and Investment Framework
Agreement
USAID United States Agency for International
Development
WBA
Women Business Associations
WBO
Women Business Owner
WIB
Women in Business
WSME Women in Small and Medium-sized
Enterprises
Executive Summary
The advancement of women has always been central to Afghanistan’s pursuit of national peace and
reconstruction. From the Bonn Agreement to the Constitution, Afghanistan Compact and Interim
Afghanistan National Development Strategy (I-ANDS), gender equality and the empowerment of women
has been highlighted in all spheres of life. As articulated in the I-ANDS, it is the goal of Government to
eliminate discrimination against women, develop their human capital, and promote their leadership
in order to guarantee their full and equal participation in all aspects of life.
In furtherance of that goal, the Ministry of Commerce and Industry (MoCI) Small and Medium
Enterprise (SME) Directorate is developing this first Women SME (WSME) Action Plan, which
identifies opportunities and constraints as well as resources and implementation
recommendations. Expanding women’s economic activities is a pillar of the National Action Plan for
the Women of Afghanistan (NAPWA), which aims to create an enabling environment that is
conducive to the fulfillment of women’s economic potential. Afghan women’s entrepreneurship will
be a driver to the success of NAPWA and the success of Afghanistan. WSME’s ability to start
businesses, scale up production, access financing, create revenue and employment in the SME
sector is a rich, untapped national economic potential. WSMEs can produce both wealth and wellbeing for their families, communities and country. Globally, it has been recognized that investing in
women-owned SMEs is one of the quickest ways to change the trajectory of a country’s economy.1
The WSME Action Plan, herewith, is influenced by a diverse group of ministerial and community
stakeholders interviewed individually, through focus groups as well as by their attendance and
input during the first working group meeting convened on February 26, 2014. The SME Directorate
sees this Action Plan as a living document that will grow and change with stakeholders’
engagements, actions and involvement in the Working Group and on the Task Forces.
Action Plan Objectives
This action plan is intended to provide a roadmap to facilitate the development of women
entrepreneurs through implementation of a key set of recommended actions. These actions
leverage current economic development programs that may spur women’s small and medium
enterprises (WSME) to greater growth. It aims to leverage and mobilize available sources of
support from donor-funded projects, NGO initiatives, and GIRoA agencies, and to provide a
systematic, coordinated approach to promoting WSMEs across a variety of sectors that are
important for the development of the Afghan Economy.
1
Source: http://www.quantumleapsinc.org/resources/index.html. Quantum Leaps has a list of resources for
women entrepreneurs, additional resources can also be found at Womenable (http://www.womenable.com/.
1
The action plan lists the principal priorities and activities that stakeholders feel are needed to
stimulate the development of this segment of the business sector. It also includes information on
resources that can be mobilized to address these problems, secure stakeholder support to
undertake systematic efforts to remove constraints, and provide the basis for developing detailed
implementation plans and procedures for achieving the objectives contained in this plan.
The action plan also provides a means of coordinating the efforts and resources of WSME
stakeholders – including GIRoA ministries, donor-funded programs, business associations, and
companies -- to implement projects and development initiatives to further advance WSMEs growth
in key sectors and emerging opportunities.
The WSME Action Plan differs from previous MOCI action plans as it takes a cross-sectoral view of
priority problems and constraints that continue to hinder women’s full contribution to the
economy. The Action Plan examines unresolved constraints, and more importantly offers
recommendations and solutions for dealing with problems faced by WSMEs in certain key sectors.
Recent development and current status
The efforts by the GoIRA and international donors to promote economic growth have over the past
decade have yielded uneven results. Although there has been modest growth in the industrial and
service sectors, growth in the largest sector in the Afghan economy, agriculture, has been stagnant.
Fortunately in the priority sectors highlighted in MOCI’s SME policy -- agriculture, carpets,
cashmere, construction, gemstones, and marble -- women-owned business are demonstrating
growth. On February 26, 2014, at the first meeting of the Women’s SME (WSME) Working Group
meeting, Deputy Minister for Private Sector Development Mutasil Kumaki commented, “the
government and donors are committed to women, so opportunities for women SMEs will improve”.
He pointed out that there are three areas that the WSME Working Group and the Ministry plan to
work on together, including local product improvement, decreasing imports, and supporting
exports.
Investing in women-owned small and medium-sized enterprises (SMEs) is recognized globally as
one of the best avenues for improving the growth trajectory of a country’s economy.2 In focus
groups with Afghan women entrepreneurs, participants were both optimistic about growth
opportunities for women-owned businesses, as well as frustrated by a number of factors. The core
of Kabul WSME discussions centered on lack of both regulatory and business literacy information
and how and from whom to obtain it. In particular they noted the need for information about legal
and regulatory requirements for starting and managing businesses, business registration and
2
Quantum Leaps: http://www.quantumleapsinc.org/resources/index.html. Womenable:
http://www.womenable.com. Accessed February 2013.
2
licensing requirements, contracting procedures, plus other aspects of commercial law -- customs
regulations, standards, certifications, etc.3 Other major problem areas included: production
problems (meeting market demand for product design, packaging, quality, etc.); market access
(developing effective sales channels in both domestic and international markets); improving access
to finance; and training and skills development – moving beyond general business skills training to
practical, on the job training in specific problem areas such as product design, marketing and sales,
and financial management.
Shifting Attitudes: The reality of the Afghan job market is that paid employment is scarce for both
women and men. Entrepreneurship affords women a market entry point for economic activity.
During the focus group interviews, women owners of small and medium sized business expressed
less concern for the daily obstacles they face and were optimistic and confident about their ability
to find solutions to current problems, to discover ways to succeed in business, and to see hopeful
future prospects for women’s involvement in the mainstream economy through their own
businesses.
Increased Government Support for Women-owned Businesses: The government is increasingly
recognizing the importance of supporting the development of WSMEs. Such support from the
government is critical, since WSMEs have a harder time than their male counterparts in dealing with
government requirements in areas such as registering their businesses, paying taxes, or accessing
government contracts.
MOCI is actively promoting an approach to stimulate and support WSMEs, as is the Export
Promotion Agency of Afghanistan (EPAA). Established approximately two years ago, MOCI’s SME
Directorate aims to improve Afghanistan’s business enabling and regulatory environment by
increasing competitiveness and trade while ensuring that the private sector operates in a fair,
equitable manner. As noted on the SME Directorate’s website, MOCI plans to give female-intensive
industries special emphasis. The SME Directorate occupies a crucial role in supporting a dynamic
ecosystem for firms. They set specific policy and clarify the rules and rights that establish good
guidelines that are intended to be evenly enforced.
EPAA’s mandate is the promotion of exports by assisting exporters and producers of export goods
to overcome bottlenecks in order to achieve higher levels of export performance and foreign
exchange earnings thereby enhancing economic growth. EPAA has set a 30% target for involving
women in international trade.
The Afghan Chamber of Commerce and Industry (ACCI) also demonstrated specific support for
WSMEs by hiring a gender officer eight months ago and holding seven-business capacity building
3
Focus group discussion for women business owners in Kabul, January 29, 2013.
3
workshops during that period. This increased focus on WSMEs by MOCI, business associations, and
donors creates a positive environment that could lead to increased national production, revenue
generation and employment.
Supporting women’s empowerment and entrepreneurship by expanding U.S.-Afghan trade and
investment: The U.S. Trade Representative (USTR) and the Ministry of Commerce and Industry
(MOCI) signed a Memorandum of Understanding (MOU) in June 2013, creating the United StatesAfghanistan Council on Trade and Investment, known as the TIFA Council”. The MOU’s goal is to
enable the economic empowerment of women and to promote women’s entrepreneurship. The
MOU outlines support in the following key areas:
KEY PRINCIPLES FROM THE MOU TO SUPPORT WSMEs
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Ensure strong interagency and inter-ministerial support and coordination of
policies and programs
Provide WSMEs with access to information about laws, regulations, policies and
information specific to international trade rules, requirements and preference
programs
Address and remove government impediments
Address and remove market barriers
Solicit input from WSMEs
Promote increased dialogue and exchanges on best practices
This important MOU is the basis for resolving constraints that hinder WSMEs, while creating
initiatives to help women start, run, and grow their own businesses. Both governments are
committed to providing strong support to policies and programs aimed at affording women with
access to markets, as well as information about laws and regulations for running a business,
including international trade rules, requirements, and preference programs. Both governments
intend to solicit input from women entrepreneurs and women’s business associations on specific
problems they encounter and on how the governments can best work together to find solutions.
Priority problems and constraints
In discussions with the women business owners, the following constraints were highlighted.
Enabling Environment:


4
Women business owners find it difficult to attain information regarding registration
requirements for different types of businesses – where to go, what types of information
they need to provide, and how much it costs to register.
Once a business is established through registration with Afghan Investment Support Agency
(AISA), women entrepreneurs may face problems renewing their licenses due to a lack of
understanding or the taxation issues or other renewal requirements. In addition, due to
poor financial literacy, women often face difficulties understanding tax and finance issues,
which impede their ability to grow their businesses.
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

Lack of access to government officials. Most business-related policies, activities, and actions
must be approved by multiple layers of government officials, which often require personal
contacts, relationships, or dealings that are not culturally acceptable for women to engage
in.
Lack of a national database of updated and/or up-to-date authentic active SMEs
disaggregated by gender and sector.
Lack of comprehensive statistics on WSMEs.
Women face particular safety constraints traveling within Afghanistan.
Women lack of safe, comfortable venues to operate within Afghanistan.
Deficient network of professional women in business development services to answer
questions and concerns for WSMEs.
Limited number of male supporters of economic change who encourage women business
owners.
Access to Markets








Lack of ability to meet market demands by producing adequate quality and quantity of
goods and services.
Limited opportunities for women to market their products, both locally and internationally
Lack of access to physical and virtual markets. Many of the women’s products are sold to
Pakistan, which are exported under the Pakistani brand due to limited options for export
sales under the Afghan brand.
Lack of contacts with international buyers and showroom space for women to market their
products for international export.
Lack of venue for women-owned shops. Established women’s gardens are not providing a
satisfactory venue for women business owners for a number of reasons. These include the
lack of proper infrastructure for the majority of businesses and customers, the lack of a
market structure similar to the rest of the market where you have clusters of similar-kind of
shops and the inability for men to shop there, since in many cases, men have the access and
control over the family finances.
Limited local technical expertise to address poor quality packaging.
Difficulty bidding for, winning, and understanding formal contract procedures.
Heavy reliance on “middle men” to sell women’s products in both domestic and export
markets. (Lack of direct sales channels)
Access to Finance:



Lack of access to credit for loans due to limited access to collateral, inheritance, and use of
family resources.
High interest rates and short repayment schedules make it difficult to pay back loans on
time.
Lack of financial literacy and business skills needed to apply for loans and donor grants.
Access to Appropriate Training with Practical Link to Markets
5
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Lack of clear links between business skills training and market needs.
Lack of quality, long-term, customized training programs that respond to both the needs of
women and their access to resources (inputs, finance, physical space, technology).
Lack of access to higher education, vocational, and technical training.
Growth prospects and emerging opportunities for women-owned SMEs
The focus groups and individual interviews reflected a robust environment for emerging business
opportunities for women, particularly in the services arena. New firms in areas such as information
and communication technologies (ICT), are entering the Afghan market and are creating new jobs
and developing innovative products in a number of areas such as product design, software
development, social media, electronic newspapers, website creation, and related ICT activities.
Growth opportunities also exist for women-owned SMEs in most of Afghanistan’s major industry
sectors, providing the business development problems outlined above can be solved. Through the
SME Directorate and as outlined in the SME strategy, MOCI aims to add $3 billion to the Afghan
economy by 2018, specifically by supporting women in agriculture, carpet weaving and other
female-intensive industries through improved marketing and better access to both domestic and
international markets.
Keys to Success
Successful implementation of this Action Plan will require:

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


Effective leadership – Identifying and engaging champions (key organizations and
individuals), empowering them to implement the action plan
Stakeholder buy-in – securing commitments from key stakeholders – government ministries,
donor organizations, private sector enterprises and organizations, NGOs, and universities;
providing incentives for active participation in working groups and task forces
Establishing realistic goals and time tables for actions undertaken by working groups and
task forces
Leveraging resources – securing financial and technical support from organizations that are
currently sponsoring or planning to sponsor programs to support women in business (see
Annex 1)
Maintaining effective communications – sharing the plan and actions to achieve goals and
objectives, reporting on progress, publicizing results
Examples of how the Working Groups and Task Forces will be structured and operate are provided
in Annexes 3 and 4.
6
Increasing opportunities for women in
Afghanistan’s principal industry sectors
Overview
Entrepreneurship flourishes in clusters as is evidenced in the sector specific Action Plans (agribusiness, carpets, cashmere, construction, gemstones, and marble) of the national plan. Assistance
to women-owned enterprises requires coordination by MOCI’s SME Directorate through six
strategic levels: policy, industry sectors, community stakeholders, donors, enterprises, and religious
leaders and other male supporters of women’s economic change.
The SME Development Directorate has already adopted Action Plans targeting several sectors that
have potential for economic expansion and export creation. Focus groups brought forth the
importance of women’s activities in agribusiness, carpets, jewelry and gemstones, construction,
marble (marginally) and emerging market opportunities.
The SME Directorate4 is responsible for promoting the growth of enterprises that comply with
MOCI’s definition for small and medium-sized enterprises, which classifies small businesses as firms
with 5-19 employees and investments in plant and machinery ranging from AFN 2.5 -5 million and
medium businesses as firms with 20-99 employees with investments in plant and machinery of
between 5-10 million AFN. This includes overseeing the implementation of the SME Strategy and
developing and implementing programs that will provide incentives to encourage firms to formalize
their operations.
The SME Directorate leaders have stressed their support to WSMEs at every opportunity, including
on their updated website, within high-level meetings, as well as at the first Working Group meeting
on February 26, 2014. The SME Directorate has emphasized that women have already played a
major role in agriculture, carpet weaving, embroidery, and handicrafts, and going forward will
contribute even more to the national economy. To that end, the SME Directorate is committed to
creating an enabling environment for both men and women to grow in and benefit from the
national economy.
The Export Promotion Agency of Afghanistan (EPAA) provides additional support to women SMEs by
encouraging women’s participation in the priority sectors and helping them develop their capacities
to undertake successful export marketing activities. For this purpose, EPAA initially focused on two
sectors: carpets and agriculture (namely, fruits). For example, EPAA trains women in carpet
4
7
Source: http://moci.gov.af/en/page/6024
designing and involves them in marketing activities for this sector. Additionally, EPAA is committed
to expanding women’s agribusiness representation In EXPO 2015 Afghanistan.
The World Bank outlined in their May 2012 update that Afghanistan’s economic growth has slowed
but remains at satisfactory levels to generate rising average standards of living, which is a good
indicator for increasing business development services. In 2014, Afghanistan ranked 164 of 189.
The services sector in 2013 continued to account for about half of economic growth, fueled by the
growth in the telecommunications sector.5
World Bank Doing Business Ranking for Afghanistan 2011 - 2014
World Bank Doing Business Catagories
Afghanistan's ranking in Doing Business:
Overall (183 countries surveyed)
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering Property
Getting Credit
Protecting Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Closing a Business
2011
2012
Change
2012
2013
Change
2013
2014
Change
154
160
-6
160
170
-10
170
164
6
24
160
132
170
130
183
58
179
161
107
30
162
104
172
150
183
63
179
161
105
-6
-2
28
-2
-20
0
-5
0
0
2
30
162
104
172
150
183
63
179
161
105
31
170
111
176
154
189
95
181
170
118
-1
-8
-7
-4
-4
-6
-32
-2
-9
-13
31
170
111
176
154
189
95
181
170
118
24
167
104
175
130
189
98
184
168
115
7
3
7
1
24
0
-3
-3
2
3
According to World Bank’s Doing Business report for 2014, two of Afghanistan’s reforms are making
it easier to start and operate SMEs:
1. Starting a business has been made easier by reducing the time and cost to obtain a business
license and by eliminating the inspection of the premises of newly registered companies, and
2. Getting credit was strengthened by its secured transactions system by implementing a unified
collateral registry.
Although these improvements are positive strides for business owners, WSMEs are less likely to
benefit from the improvements, as they continue to face difficulties accessing the registration
facility and are less likely to have access to credit.
The Afghanistan Investment Support Agency (AISA) manages a one-stop shop to serve the interests
and needs of investors. AISA is charged with facilitating business registration, licensing and
promotion of all investments in Afghanistan. Data received in March 2014 reflects an upward trend
in Kabul of women businesses6 registered to date with AISA. The same data needs to be collected
5
Source: http://www.doingbusiness.org/data/exploreeconomies/afghanistan/.
6
As registered at AISA and reported by Central Statistics Office, there is some question as to the veracity of the
WBOs and whether or not they are bona fide women-owned and operated entities or possible fronts.
8
from the provinces. The following table provides current totals for WBOs in different sectors
registered with AISA.
Sector
Women Businesses
Agri-business
Food processing and dairy products
Cattle, Silk, Chicken Farms and Agriculture products
Dry fruit processing
Handicrafts
Clothing and garments
Wood, carpentry and furnishings
Carpets and rug production
Jewelry, Gemstones, stones cutting production
Sculpture and home products
Construction Companies
Plastic products, pharmaceuticals, cleaning materials
Handicrafts
Wood
Carpets
Jewelry and Gemstones
Marble
Construction
Other manufacturing
products
Emerging Market
Opportunities
Total
Accommodation and food service activities
Administrative and support service activities
Arts, entertainment and recreation
Education
Electricity, gas, steam and air conditioning supply
Financial and insurance activities
Human health and social work activities
Information and communication
Mining and quarrying
Other service activities
Professional, scientific and technical activities
Transportation and storage
Water supply; sewerage, waste management and
remediation activities
WBOs registered at
AISA
36
17
4
80
28
6
7
4
0
352
33
16
16
7
40
3
5
18
51
5
12
162
225
3
1130
As noted above currently 118 women’s businesses are registered in handicrafts and textiles.
Handicrafts are managed by non-governmental organizations (NGOs) as livelihood projects, and
although not in the national strategy, they are considered to be an important industry by the SME
Directorate. Behind agriculture, artisanal activity is the second largest employer, albeit primarily
informal. For many women, their livelihood depends entirely on income earned from artisanal
activities. Handcrafters, such as Kandahar embroiderers as well as carpet weavers across
Afghanistan, generate income, create jobs, foster economic communities, sustain ancient
techniques, and preserve culture. Afghanistan can take the lessons of scale from other countries
Trustworthiness needs to be integrated into the registration processes and strong data collection, gender
disaggregated, must be applied and reflected not only within in AISA, but also CSO and ANSA, as well as MOCI.
9
that have been able to help handicraft industries soar such as Thai silk, Mexican Oaxacan painted
animals and Taxco silver, or African kente cloth, to name a very few examples.
Agribusiness
Agriculture is the backbone of Afghanistan’s national economy sustaining livelihoods for 80 percent
of the population (directly or indirectly). In addition, agriculture represents a 26.74 percent
contribution to the GDP. Downstream, agriculture provides raw material for numerous industries
and it is a significant export.7 Encouraging women in the agricultural value chain was a common
theme in the focus groups. While women in rural areas are responsible for post-harvest and
marginal value-added inputs, women in metropolitan areas such as Kabul focus on downstream
consumer processing, packaging, and marketing.
WSMEs have a great desire to increase their return on investment with new and improved
products. From the February 2014 interviews and focus groups, WSMEs outlined assistance needed
with identifying emerging niche markets domestically as well as markets with export potential,
perhaps, but not limited specifically to women, needs are in areas such as:


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Fresh vegetables for daily consumer use
Dried fruits (berries, apricots, raisins), nuts (pistachios, almonds), saffron
Fresh fruits, including: figs (note: $40 million in exports 2010/2011), pomegranates,
apricots, plums, etc.
Specialty products such as pickles, jams, etc.
Inputs from WSMEs engaged in
Registered with AISA, a businesswoman in Kandahar
agribusiness describe industry problems
operates a jam/jelly business with 60 full-time
employees. She noticed that in her province the
and constraints similar to those
women were scattered and faced difficulties in
highlighted in the Agribusiness Action
reaching markets. With energy and creativity she
Plan. Issues of particular note are:
decided to form a union of agri-business value-added
frustration with marketing, packaging,
producers and now has 50 small businesses
design, transportation, produce freshness,
registered with her union. As a union, they conduct
standardization, certification, low quality
training on business plans, food safety, and related
production capacity, lack of permanent
topics. They also sell collectively in the local market,
thus diversifying consumer products and helping one
market or exhibition facilities, a better
another market all products of the union.
service delivery model (highlighted was
the woman-to-woman model of producers
to wholesalers, processors and exporters) and land titling, which inhibits collateralizing loans.
7
http://www.aisa.org.af/
10
Carpets
The government places a high priority on the development of the carpet sector, particularly
because of its importance as a source of income for the rural population, including the involvement
of over 80,000 women in this important sector.
With regard to carpets, Afghan WSMEs say that they should look to international markets to sell
their goods, since the domestic market for hand-made carpets has declined significantly due to
competition from machine-made carpets imported from neighboring countries. Export sales will
make businesses more profitable; however, women are not clear on what they need to do to bring
Afghan goods up to international standards, especially as related to sizing, design and overall
quality. Nevertheless there are some programs that provide good examples of what needs to be
done. Arzu in Bamayan offers one good model. They have improved wool quality through
livelihood technical advice, instrumented quality control into the weaving process, upgraded
designs to international tastes and standards, opened cross-border markets, and wove a social
contract into each employee’s work contract.
In Kabul, one businesswoman was quick to express her appreciation to USAID for helping both her
business and her carpet association to grow; however she noted that there is still a missing link.
The training sessions she attended helped her streamline her business process, but the bridge to
international buyers is still missing. This missing link has limited her prospects for moving forward
with her business making it donor-project dependent. A permanent staff of five and up to 120
women stand ready to work so she added a new product line of household textiles such as pot
holders, lid covers and pillow covers. Most of her orders come from Pakistan, but she doesn’t have
a direct contact, uses a middle man who finds a buyer, and then the middle man takes her products
to Pakistan and sells them under the Pakistan brand. She still operates in an informal manner
without signing legal contracts, which she says is a problem with the entire carpet industry.
Feedback from focus groups sessions and individual interviews with women entrepreneurs involved
in the carpet sector confirmed the importance of the industry problems and constraints described
the Carpet Action Plan. Their particular frustrations center on issues related to marketing (lack of
direct contacts with international buyers and reliance on local traders/middlemen), understanding
and meeting buyer requirements for product designs, colors, carpet sizes, quality standards, volume
requirements, prices, and delivery schedules, entering into legal contracts, and difficulties
promoting the Afghan Made brand.
Construction
Construction is one of the priority sectors outlined in the National SME Policy; however that plan
places a heavy focus on infrastructure and quarrying and processing construction materials, such as
cement. Women are present in the construction sector as business owners, and the number of
female engineering students enrolling in public and private universities is growing each year.
Seeing the potential, both the USAID-AESP and the Society of Afghan Women in Engineering &
11
Construction (SAWEC) project, an NGO, provide technical assistance and on the job experience for
female construction and engineering students. AISA reported that there are 352 women owned
construction companies, which is a higher number than in any other sector. Although there are
many women involved in the engineering, architecture, and design fields it is unlikely that all of
these construction companies are operated by women, except in name only. Standardized
verification requirements for women-owned businesses are necessary to ensure the businesses are
active and owned by women.
The International Center for Afghan Women's Economic Development (ICAWED) at the American
University of Afghanistan (AUAF) is one example of women successfully participating in the bidding
and contracting of a high profile construction project. Five prominent women-owned construction
companies were contracted by Technologists, Inc., an Afghan construction company to participate
in the building of ICAWED.
The major constraint for women in the engineering, construction, and design field is limited access
and ability to bid on government contracts. Improving the transparency of the bidding process by
changing policies and procedures at the ministry level will make it easier for women-owned firms to
respond to requests for proposals (RFPs). In addition, setting aside government contracts for
women business owners to bid on exclusively will broaden the playing field for women to
participate in construction and design projects.
Jewelry and Gemstones
One of the most exciting aspects about Afghanistan’s jewelry and gemstones sector is that
conspicuous natural resources are amply distributed throughout the country -- from the Panjshir
Valley (emeralds), to Jegdalek (rubies and sapphires), to Nuristan (emeralds, rubies, aquamarine,
tourmaline, kunzite, and sopdumene), to Helmand (Flourite), to Herat (aquamarine and tourmaline)
and on to Badaskhan (sphene, peridot, aquamarine, ruby, spinel, lazurite and lapis lazuli).8
Gems, semi-precious stones and polished stones are not only for jewelry and fashion accessories,
but also for home decorative products and architectural features, and consequently offer plentiful
WSME opportunities. USAID estimates that, with reforms, the gemstone industry in Afghanistan
could generate as many as 30,000 to 50,000 direct and indirect jobs.
In addition to learning new technical methods in cutting and polishing, including operating modern
equipment, WSMEs cite certification as a primary concern. A well-known and popular Kabul jeweler
explained that her business in the beginning was very small grossing about $2,000 annually. Later
on she became certified gemologist by attending training courses hosted in Dubai by International
8
Ministry of Commerce and Industry and Ministry of Mines. Implementing the SME Strategy: An action plan for
developing Afghanistan’s gemstone industry, May 2011-April 2013
12
Gemology Institute (IGI). IGI is the largest organization of its kind and offers a variety of courses
designed for professionals. As the world's largest independent gem certification and appraisal
institute for diamonds, colored gemstones and jewelry, IGI is a standard of excellence for industry
professionals and consumers around the globe. Within a three-year period after becoming certified
in Dubai, she built her business into a $200,000 operation employing five people.
WSMEs tend to be engaged mostly in the downstream processes of designing, creating, trading,
processing, selling and sometimes exporting jewelry. Business is obstructed by limited cutting,
polishing and marketing skills, which, once addressed, opens up opportunities to keep the 80-95%
of Afghan raw gem production in country instead of sending it to Pakistan. Reform in the export
regime and skills development for gem-cutters, jewelers, stone-carvers, gemologists and traders, as
well as development of national and international market linkages will open more business vistas
for WSMEs.
Marble
Although Afghanistan is home to 60 known deposits with as many as 35 varieties of marble in 40
different colors9, it has not yet proved to be a successful sector for WSMEs. Marble products, not
just quarried finished slab marble and tiles, but particularly ancillary products such as marble
carvings and even dust for pharmaceuticals, paint, and other home products, could provide entry
points into the marble products value chain for women entrepreneurs.
Yet, in discussions with well over 100 women business owners in February 2014, only one business
in Herat integrated women into its marble production processes. However, one innovative womanowned company in Herat registered with AISA uses discarded or blemished marble pieces to create
sculptures using provincial female talent. In November 2013, as requested by the U.S. Department
of Commerce and sponsored by Herat University, the company trained 38 female art students in
the handling and safety of sculpting tools and machinery. From the 38 women trained, the
company hired 5 as new employees, and explained how the others could start their own small art
businesses. Some of the sculptures are sold in Herat, some via the Internet, and most all of the
large scale sculptures are shipped and sold in Dubai, where the WSME plans to open a new gallery.
Given the artistic talent and handicraft skills that women possess in many local communities,
market potential exists to recycle marble wastage from the quarries. The marble sector is an
untested, unexplored industry with potential for women business owners at various levels, most
likely, in the downstream, handicraft segment, of the value chain.
9
Implementing the SME Strategy: An updated action plan for developing Afghanistan’s marble sector. October
2013-September 2016. Kabul: Ministry of Commerce and Industries and Ministry of Mines and Petroleum.
13
Emerging Opportunities for WSMEs
The potential for women SMEs is not limited to a few priority sectors. Innovative new business are
springing up daily, particularly in the business development services industry, including: accounting,
ICT, engineering, law, insurance agencies, consultancy, logistics, travel, printing, graphics, design,
gyms, beauty salons and services, as well as the health sector (as evidenced by the 20 new private
health clinics operated by women).
One powerful key to economic development on the community level lies in nurturing local creativity
and entrepreneurship. Many SMEs are providing quality products and services and are growing
sufficiently to hire non-family employees. Also, family-owned and operated businesses are an ideal,
resilient and a vibrant model for the 21st century. They add value on several levels, including:
longer-term thinking, a broader perspective, quicker and more flexible decision-making, an
entrepreneurial mind-set, a greater commitment to jobs and the community, and a more personal
approach to business based on trust.10
At the American University Women’s Economic Forum a panelist suggested that participation and
leadership in family businesses is a particularly good fit for women. The family business structure
allows women greater social acceptability and safety if their commercial activity is conducted with a
male member of the family. The panelist bases her opinion on the two businesses (one
manufacturing and one retail) that she operates with her own family.
Across all of the primary industry sectors in Afghanistan, women entrepreneurs face similar
problems related to transportation, access to business facilities, strict social/cultural/traditional
dynamics, family opposition, lack of strong networks, informal market participation, low tech (in the
case of women not engaged in ICT), difficulties and/or discrimination registering their businesses,
limited access and ability to bid on government contracts, and poor security conditions11.
MOCI’s SME Directorate helps SMEs access business
development services that enable them to grow
their businesses and produce new jobs. This
includes cooperating with international donors,
business associations, and other private sector
stakeholders to maintain a directory of BDS
providers, schedules for technical assistance and
training events, and information about sources of
10
PwC Family Business Survey 2012. Source: www.pwc.com/fambizsurvey.
Hurdles related to creating a business environment enabling for women-owned businesses in the country are
well defined in the Simmons-Benton, et al, Economic Empowerment Strategies for Afghan Women. The findings
are triangulated by findings in alignment with the MOCI-SME Directorate pre-WSME working group meeting and
ACCI’s most recent report on women business members.
11
14
However, these problems are not
financial assistance for accessing different types of
business development services.
insurmountable. A variety of solutions are
available to enable women overcome these
problems, including establishing business support centers (that provide a one-stop-shop for access
to information, legal services, and business development assistance), implementing capacity
building programs (especially for contracting, accounting, financial skills and computer literacy),
and, of course, providing practical marketing assistance that promotes ties between producers and
buyers. An important key to success lies in mobilizing stakeholders to not only identify problems
women entrepreneurs face in developing their businesses but also to actively work together to
discover and implement solutions to these problems. In all of the industry sectors discussed above,
women entrepreneurs can play a vital role in identifying new business opportunities, identifying
constraints, and working together to create new futures for themselves and their families.
Cross- Sectoral WSMEs SWOT Analysis
Strengths





Optimism for a strong economic future
Demonstrable WSME success models
Ability to scale production, revenue
and employment
Added innovation to priority sectors
and emerging markets
MOCI leadership and political will to
support, encourage and grow WSMEs
Weaknesses






Opportunities




15
Formalize business venues for WSMEs
with PPPs
Develop marketing, packaging and
design approaches, includings
strengthening the “Afghan Made”
brand
Sourcing new buyers – provincial,
regional & international
MOCI and MOWA pull provincial
WSMEs into network and processes
Inconsistent quality of products
High costs of raw products
Lack of marketing, poor packaging and
design
Lack of sales relationships with
wholesale buyers and retail consumers
Lack of mainstream banking products
for women
No MOCI/SME provincial budget or
personnel
Threats



Failure to fulfil international quality
certification standards and
requirements, can jeopardize WSME
development
Failure to map, streamline and simplify
regulatory processes will impede
national economic growth
Failure to gender dis-aggregate date
fails to capture contributions of women
to the economy
Strategy and Priorities for Improving
Competitiveness
“Value chain development has in the past not always incorporated a gendered approach, and it's
important to change that,” says Anne Simmons-Benton, global practice leader on trade, regulatory
reform, gender at DAI.12 In Afghanistan, the MOCI-SME Directorate is taking the initiative to change
this dynamic by creating this WSME Action Plan, the Working Group (the main policy advocacy
body), and the Task Forces.
Specific development priorities and actions needed
Although a number of key problems and constraints are apparent for businesses in Afghanistan, the
following four solutions were identified in the National SME Action Plan as priorities to be
addressed expediently. These following four problem areas to be addressed within a three-year
timeframe were identified by multiple stakeholders during individual and focus group discussions.
The activities that follow are illustrative, as each task force will be responsible for developing their
priorities, activities, and measuring the progress of their action items.
Improving the enabling environment:
a. Legal and regulatory reform - GIRoA ministries need to analyze business registration,
renewal, and closure processes to identify and remove impediments that women face
complying with government regulations in these areas. These processes need to be
mapped and all economic policies related to women in business should be available on
easily searchable government websites.
b. Development of national database – A national database is necessary to identify current,
verified, active gender-disaggregated businesses.
c. Community support for women owned businesses – part of the enabling environment is
recognizing the validity and importance of women owned businesses and engaging the
support of male supporters and leaders of economic change.
Market Access:
a. Improving domestic and international marketing – GIRoA ministries and women’s business
associations need to work together increase visibility through exhibition spaces and safe,
utilized shopping areas where both men and women can purchase products from womenowned shopkeepers. Training on how to prepare for international trade fairs, along with
12
http://www.theguardian.com/global-development-professionals-network/dai-partner-zone/europeandevelopment-days/print. Accessed November 29, 2013.
16
services to help establish and manage relationships with international buyers, will increase
the number of exports and product orders.
b. Access to government contracts – A minimum of 30% of government contracts should be
set aside for qualified, verified women owned businesses so they can increase their visibility
and capacity and grow their businesses.
Access to finance:
a. Improving access to credit, capital, resources and
investment opportunities – Identify opportunities
for new financial products that are adapted to
meet women business owners’ needs. Women
often lack collateral and are unable to afford the
high interest rates currently offered by financial
institutions.
b. Government funding – financial institutions are
further motivated to lend to women if the
government or international donors can help
establish loan guarantee programs.
Lack of quality training programs that help participants
develop practical business management and marketing
skills:
Zahra financial product:
The Agricultural Credit Enhancement
(ACE) Program provides loans to
commercial farmers through the
Agricultural Development Fund (ADF).
They have recently launched an
innovative Islamic finance product that
caters specifically to women
agribusiness entrepreneurs called
Zahra. The line of credit is $10,000 to
$20,000 USD. The collateral required
is 100% of the loan provided by male
family members, and there is strict
monitoring to ensure that women are
not used as “fronts” for men to access
the loans. Women also have access
to financial literacy education and
training as part of the loan agreement.
a. Training opportunities - Work with Universities and training institutes to develop
meaningful, effective, culturally sensitive training programs for women business owners.
b. Practical application - Create opportunities for internships and on-the-job training for
women within the government ministries and in the private sector.
c. University, vocational, and technical education – Women’s presence needs to be increased
across all fields within different levels of higher education. The linkages that connect
graduation to the labor market need to be strengthened for women in business.
In order for these objectives to be attained, the MOCI-SME Directorate needs to focus on obtaining
stakeholder buy-in and active participation in identifying problems and solutions. The stakeholders
will identify their priorities and resources by developing a detailed work plan outlining monitoring
and evaluation measures.
Stakeholder roles in implementing the action plan and sources of assistance
Stakeholder participation is crucial for the working group and task forces to be successful within the
outlined time frame. Sustained stakeholder participation, commitment, and accountability will be
17
necessary to accomplish the benchmarks established by the task forces. The following table shows
the key stakeholders and possible roles and inputs in achieving the task force deliverables.
Stakeholder
Ministry of Commerce and Industry (MOCI)
Ministry of Women Affairs (MOWA)
Afghanistan (AISA)
EPPA
Individual Business Women
Women’s Business Associations and other
NGOs
Universities and technical institutes
18
Stakeholder Roles
- Improve policy and regulatory environment for
SMEs / Develop information guides for SMEs to
help them comply with government registration,
tax, and other regulatory requirements,
- Cooperate with other ministries and
governmental agencies
- Implement USTR MOU in conjunction with
EEPA
- Work closely with the private sector to identify
constraints and solutions
- Provincial outreach
- Strengthen women’s gardens
- Awareness building
- WSME investment incentives
- Improve, update, and maintain database for
WSMEs
- Implement USTR MOU in conjunction with
MoCI
- Change policy to include more women
exporters
- Task force leaders
- Advocacy
- Lobbying and encouraging government to fulfill
promises
- Identifying possibilities for business to business
networking and training
- Task force leaders
- Advocacy
- Setting up meetings
- Engaging in dialog with government officials
and encouraging them to fulfill promises
- Identifying possibilities for business to business
networking and training
- Recruitment of additional stakeholders
- Funding opportunities for permanent
exhibition space (rent, logistics)
- Provide training opportunities
- Provide scholarships to women business
owners
Stakeholder
Business Incubators
International development donor agencies
and project implementers
Religious leaders
Stakeholder Roles
- Increase admission of women in higher
education
- Increase opportunities for practical application
- Financial and business management
development
- Business forums
- Identify resources
- Secure funding
- Coordination in implementing action plan
priorities
- Collaborate with ministries and other
governmental agencies on projects
- Raise awareness surrounding the importance of
women contributing to the economy
- Encourage acceptance of women business
owners
In anticipation of WBO’s commitment to the MOCI WSME working group and task forces, all
stakeholders were asked how their participation would benefit them. The stakeholders noted a
variety of possible benefits when asked what would motivate them to participate in working group
and task force activities.
The motivating benefits included:








Establishing trust between WSMEs and the government
Networking with other women (including regions/provinces) and sharing achievements
Using the task forces as a platform to solve existing issues
Having a voice in issues that affect the growth of WMSEs
Gaining access to government officials
Changing mindsets about WSMEs
Using social media and technology to raise awareness of WSMEs
Expanding trading and business activities in all sectors
Recommendations for action plan implementation
19
Implementing the activities included in this WSME Action Plan will require active participation and
support from the full range of stakeholders in a cross-sectoral approach, including individuals,
companies, business associations, NGOs, international
WSMEs Require Practical Solutions:
development agencies and project implementers and
A focus group participant in Kabul
GoIRA ministries and agencies.
declared, “I am sick and tired of
talking about the problems, hardly
Because women are dynamically involved in most all
anyone talks about solutions. I feel
sectors of the Afghan economy, but most lightly in
excited to be working toward a
marble, different groups of stakeholders will need to
solution.”
work out methods for undertaking cooperative
initiatives to tackle and solve the priority problems
highlighted in this action plan. Responsibilities will
entail:












Building on the excitement of the 26 Feb 2014 first working group meeting;
Selecting influential leaders who can motivate and lead the task forces;
Organizing task force groups that include participants willing to take an active role in
creating solutions to challenges outlined in this action plan;
Creating a social and cultural environment within the task forces that not just accepts,
but also welcomes women in SMEs,
Conducting facilitation workshops to prepare the task forces leader to collect results,
manage activities, set and met deadlines and effectively report to the working group,
Creating support networks in every task force group to access data and information to
solve the constraints.
Collaborating actively to develop explicit, well-timed implementation work plans,
systems and timetables to solve the constraints and problems outlined here;
Assigning specific responsibilities with agreed upon achievable results to different
persons and groups and establishing benchmarks, schedules and deadlines to carrying
out various task that move toward the determined solution with 3 Month, 6 Month,
Year 1, Year 2, and Year 3 objectives;
Creating a work plan to ensure monitoring and evaluation is conducted and
performance targets are met;
Meeting the action plan, working group and task force objectives and deadlines;
Mobilizing support from key stakeholders to sustain working group and task forces
activities; and
Enjoying the process and people involved.
With men and women working together, the SME Directorate can ensure that what stakeholders
accomplish through the working group and the task forces is not just talk, but action – real and
sustaining action that building Afghanistan’s national economy. This will entail unleashing women’s
talent as entrepreneurs, forging new partnerships, and cementing alliances to create jobs and ease
access to markets, technology and trade opportunities to enable women to take their SMEs to a
20
higher level. The strengthening of private sector input by infusing women’s perspectives into
governmental and political processes will contribute to the success of families, communities and
future generations. Through the leadership of the SME Directorate, the fertilization of new and
enduring economic and government opportunities for women will ultimately result in a better life
for everyone.
With more productive collaboration between the government and private sector and with men and
women working together there is tremendous potential for a hopeful future for Afghanistan’s
women.
21
Summary of Priority Problems and Proposed Actions
Main problems
Main priorities
Tasks / Activities
Deliverable
Possible Sources of
support
Benchmarks
1. Enabling Environment: Policy related to regulatory reform and stimulating positive change
Registration,
renewal, and
business
closure
22
Create a safe
environment
for women to
access
registration
facilities
- Create a separate queue for
women at AISA and other
locations where women business
owners get registered
- Separate queue
created
MOCI-SME
Directorate,
AISA
MAIL
MRRD
MOE
MOJ
MOPH
WBAs
AISA
MOCI
WBAs
Inter-agency working
group or task force
ACCI
3 Months
Mapping and
improving the
registration,
regulatory, and
tax processes
and locations
- Develop policy mapping - define
why and where business are
registered or licensed
- Process maps
uploaded on MOCI
website
- Collect and identify all economic
policies related to women in
business
- Hard and soft
repository of policies
- Extend business registration for
two year intervals
- 2 year renewals
offered
Year 3
- Automate registration process
- Process automated
Year 3
6 months
Year 2
Awareness
raising on how
to register
businesses
Lack of access
to information
23
Lack of Data
collection and
National Data
base for
women owned
businesses
- Create business centers/advisory
group
- Advisory group
established
- Establish women-only open
“office hours” for women to get
their registration questions
answered in a safe space
- Special office hours
set
- Hire women service providers
hired and trained
- 10% of women
service providers are
women
Year 1
- 20% of women
service providers are
women
Year 2
- 30% of women
service providers are
women
- National database
created to reflect
current, verified,
active WSMEs
Year 3
- Create National database of
verified, active women owned
businesses.
AISA
MOCI-BDS
Department GIZ
WBAs
CSO
MOWA
MOCI-Private sector
development
department
EPAA
ACCI
AISA
NGOs
ANSA
Year 1
6 months
Year 3
Lack of
community
support for
women
business
owners
Limited
number of
male
supporters
- Identify male supporters of
economic change
- Identify local religious leaders to
encourage women business
ownership
- Support marketing campaigns
that support women in business
- Male stakeholder /
champions list
generated
WBAs
WBOs
3 months
- Script for male
religious leaders and
evidence it is being
used
Asia Foundation
3 months
- Radio ads, posters,
and social media exist
MOCI-SME Directorate
MOWA
Years 1-3,
with a social
media
campaign in
first 3
months
2. Market Access: Limited ability to meet market demands both domestically and internationally
Domestic
Market Access
24
Create
permanent
exhibition
spaces using
government
lands or
buildings
- Identify retail/exhibition spaces
accessible by both men and
women
- Identify production facilities for
women
- Retail/exhibition
spaces created
- Production facilities
created
MOCI-SME Directorate
MOWA
WBAs
6 months
Change the
model of
MOWA/DOWA
women’s
gardens
- Reconfigure/redesign
MOWA/DOWA women’s gardens
to allow access for men and
women in the retail shop area
- Women’s gardens
redesigned and
advertising campaign
launched and visible
- Maintain a separate space for
women to socialize
- Increased sales
measured
MOCI-SME Directorate
MOWA/DOWA
WBAs
telecommunication
companies
ICT
WBOs
6 months
MOCI-SME Directorate
LEAD
Lawyers Association
AISA
MOWA
Year 1
- Launch advertising campaign on
television, radio, and social media
to generate support for WSMEs
Lobby for 30%
of government
contracts to be
allocated to
women owned
businesses
International
Market Access
25
Promote
business
relationships
with importers,
wholesalers,
and
manufacturer
representative
s that maintain
showrooms in
- Implement policy for WSME 30%
set aside of government contracts
- Offer training on how to bid and
contract for the government.
- Identify importers, wholesalers,
manufacturer representatives,
and sales agents in major market
centers that are interested in
selling Afghan products
- Provide training to local
producers on how to develop and
maintain relationships with
overseas buyers and sales agents
- WSME government
contracts increased
by 10%
- WSME government
contracts increased
by 20%
- WSME government
contracts increased
by 30%
- Increased visibility
for Afghan products
in international
market centers
- Sales of Afghan
products are being
promoted through
normal market
channels
Year 2
Year 3
MOCI-SME Directorate
WBAs
EPAA
ACCI
USDOC
TFBSO
ATAR
Other donor-funded
programs
6 months
international
market centers
- Help local producers develop
representation and sales
agreements with international
buyers/agents
- Facilitate attendance of WSMEs
and business associations in
international marketing events
and trade shows.
Increase
exports
- Conduct training on how to
prepare for international trade
fairs
- Conduct training on Emarketing, ITC for better
customer engagement
- International buyers
providing feedback to
producers on product
designs, market
trends, and buyer
requirements
- Women exporters
increased 10%
- Women exporters
increased 20%
- Women exporters
increased 30%
3. Access to Finance: including credit, capital, investment, and other resources
Lack of Finance
options
Develop
financial
products that
women can
access
- Development and replication of
financial products designed for
WSMEs
- Zahra product
replicated to other
MFIs and banks
- Engage financial institutions to
reach out to women business
owners and offer loans by
offering a safe and comfortable
venue for women only access
- Separate venue
exists within bank for
women to access loan
female financial
officers safely and
comfortably
4. Access to appropriate training with practical link to market access
26
MOCI-BDS
Department
EEPA
ABDADE-BDS
ATAR
sector trade
associations
Year 1
MOCI-SME Directorate
OXUS
Afghan National Bank
Maiwand Bank
ACE/ADF
FIADA
ARFC
OPIC
Year 2
Year 2
Year 3
Year 1
Lack of Quality
Training
programs
Work with
Universities,
training
institutes, and
donor
community to
develop
meaningful,
effective
trainings for
WBOs
Create
opportunities
for practical
application
- Develop business to business
training courses for women
business owners to learn business
skills from each other
- # of business to
business training
courses taught (to be
determined by task
force)
- Establish online business forums, - # of women’s
which include success stories and business forums
networking opportunities
established (to be
determined by task
force)
- Set up internship programs for
- # internships/on the
on the job training in the
job training created
ministries and in the private
(to be determined by
sector
task force)
Universities and
vocational institutes
WBAs
ABADE
AUAF
Year 1 – 3,
ongoing
activities
MOCI-SME Directorate
WBAs
Business incubators
Year 1
Ministry of Higher
Education
NGOs
Government
Ministries
Year 1 – 3,
ongoing
activities
Ministry of Higher
Education
Universities and
vocational institutes
Year 3
- Stress the bridge between
training and link to market by
focus on practical steps
Increase
number of
women in
higher
education
- Provide opportunities for female
students to enter higher
education by increasing
awareness of degree programs,
ensuring safe environments for
study, and increasing scholarship
opportunities
Overarching: Success of WSME Action Plan
27
- Female graduates
are equal to 30% of
total graduates
Sustainability
of working
group and task
forces
Maintain
progress of
WSME Action
Plan
- Obtain stakeholders buy-in to
the process with a detailed work
plan outlining monitoring and
evaluation measures
- 3 year work plan
MOCI-SME Directorate
ABADE
key stakeholders
3 months
Annex 1:
Overview and Current Status of Programs for Women in SMEs
Agency
Programs
Particular Focus on Women Business Issues
Overview and Current Status of Afghanistan Ministerial and Quasi-Governmental Programs for Women in Business
Ministry of Commerce and
Industry (MOCI)
Policy Making
Ministry of Women Affairs
(MOWA)
Policy Making and Oversight
Draft action plan for supporting women in private sector
Initiated the first Working Group for Women SMEs and coordinates
taskforce activities
Making policies to improve women economic situation
Monitor women related programs throughout government/donor
agencies
Attract donors to support women activities
Afghanistan Investment
Support Agency (AISA)
28
Enabling environment for
trade and investment
None
Export Promotion Agency of
Afghanistan (EPAA)
Capacity Building and enabling
environment for trade and
exports
Increasing the number of women participants in national/international
exhibition by 30% in 2014
Supporting women in improving their production quality by providing
trainings
Publishing awareness brochure and booklets
Afghanistan Chamber of
Commerce and Industry (ACCI)
Capacity Building and Enabling
Environment
Providing business skills trainings to female registered members
Overview and Current Status of International Government Programs for Women in Business
Asia Foundation
Ministry of Women's Affairs
Organizational Restructuring
and Empowerment Project
(MORE)
Policy and strategy at MOWA
Australian Agency for
International Development
(AusAid)
HealthNet
Potential to support privately owned, female owned medical clinics
Canadian International
Development Agency (CIDA)
Economic Officer
Policy development and research
Danida, Denmark’s
development cooperation,
which is an area of activity
under the Ministry of Foreign
Affairs of Denmark
Financing support of ADF
Opportunity to lobby to earmark funds specific for WSMEs
A-2
Department for International
Development (DfiD)
Adam Smith International
Gesellschaft für Internationale
Zusammenarbeit (GiZ)
New Market Development
Not specific to women, but should be approached
Norwegian Agency for
Development Cooperation
(NORAD) and Swedish
International Development
Cooperation Agency (SIDA)
Gender Reviews
Joint policy research related to gender dynamics
UN Women
Ministerial Gender Support
Currently deciding which 3 ministries to support in 2014 reword. MOCI is
a potential selection.
U.S. Agency for International
Development (USAID)
Agricultural Credit
Enhancement (ACE)
Zahra financial product delivered by OXUS
U.S. Agency for International
Development (USAID)
Afghanistan Engineering
Support Program (AESP)
Engineering internship program for women and on-the-job experience
U.S. Agency for International
Development (USAID)
Assistance in Building
Afghanistan by Developing
Enterprises (ABADE)
PPAs WSME action plan
U.S. Agency for International
Development (USAID)
Financial Access for Investing
in the Development of
Afghanistan (FAIDA)
Working of expanding access to credit for women
U.S. Agency for International
Development (USAID)
Land Reform in Afghanistan
(LARA)
Awareness programs on women land and property rights
A-3
Regulatory policy
U.S. Agency for International
Development (USAID)
Afghanistan Trade and
Revenue Project (ATAR)
Developing a WG with MoPH, 20% participants are women
U.S. Department of Commerce
Commercial Law Development
Program (CLDP)
Commercial law strengthening and mainstreaming of women into law
practice and courts system
U.S. Department of State
Public Affairs Grants
Zardozi/Gangina, Atremis
U.S. Department of
International Narcotics and
Law (INL)
Global Rights
RoL / Police women trg / courts / Internships / Fellowships
Overview and Current Status of Afghan Private Sector Programs by Women’s Business Associations and NGOs
Afghan Businesswomen
Association (ABA)
Business skills training
Young WBA just finding its way and voice
Afghanistan Independent Bar
Association (AIBA)
Professional lawyers
association
Special forums and networking opportunities for female lawyers
Afghan Women Business
Federation (AWBF)
Technical Assistance
Provide support from production to the marketing
Creating a bridge between WSMEs and Micro-Finance Institutions
Providing training on legal issues
Federation of Afghanistan
Craftsmen and Traders (FACT)
Business Development Services Specialized training for women entering the trades
for the Trades
FLAG International, LLC
Training
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Herat Marble Training (sculpting with machines) with female art students
at Herat University
Harakat
Toolkits
Preparing handicrafts toolkit to help women producers improve product
quality and design for international markets. Export awareness raising
and opportunities
Leading Entrepreneurs for
Afghanistan Development
(LEAD)
Technical Assistance
Solving non-productive business licenses issues for all WBOs through
advocacy
Provide trainings on trade policies, procedures and laws
Overview and Current Status of Afghan University Programs for Women in Business (percentage of female students)
American University of
Afghanistan (AUAF) (22%)
International Center for
Afghan Women’s Economic
Development (ICAWED)
Arranging economic forums for private sector development for
stakeholders to share experiences with WBOs, provide networking
opportunities, and publishing informative policy booklets
Innovation Hub
Balkh (25.6%)
Standard academic curricula
Not known
Dunya Institute of Higher
Education (% not known)
Standard academic and
research curricula
Transportation and kindergarten facility
Gawharshad (33%)
Standard academic curricula
New Women’s Learning Center provides teacher trainings, basic health
education and new professional programs in Nursing and Health
Education.
Herat University (43%)
Standard academic curricula
Heavy focus on female recruitment
Jalalabad (3.7%)
Standard academic curricula
Increasing female students to 20% in 5 years, exam incentives,
encouraged to engage in campus activities, provides transportation and
dormitories, emphasis on ICT
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Kabul University (16.4%)
New commercial law program
Recruiting women to study commercial law and extremely active female
law professors
Kardan University (over 20%)
Capacity Building
Provide different trainings on business management
Kateb (32%)
Standard academic curricula
Encourage female students to participate in sports
Given the growing enrolment (percentages noted above) of female students, all universities have the potential to provide female interns to
both the government and the private sector.
Annex 2: Action Plan Process Graph
MOCI-SME DIRECTORATE
WOMEN SME ACTION PLAN
WOMEN SME WORKING GROUP
TASK FORCE:
MARKET ACCESS
A-6
TASK FORCE:
ENABLING ENVIRONMENT
TASK FORCE:
SUPPORTERS OF ECONOMIC CHANGE
TASK FORCE:
ACCESS TO FINANCE
TASK FORCE:
REGULATORY AND LEGAL REFORM
TASK FORCE:
TRAINING TO MARKET
Annex 3: Sample – Implementing the Action Plans –
Working Group and Task Force Roles
Note: The Terms of Reference below was developed for the SME Directorate Carpet Sector Action
Plan that is currently underway. As one of the first activities along with developing the WSME Work
Plan, the WSME Working Group and/or ad hoc Task Force should revise this Terms of Reference to
reflect specificity to WSMEs objectives.
Action Plans: To promote development in the industry sectors targeted in Afghanistan’s SME
Development Strategy, MOCI has been working with industry stakeholders to develop Action Plans
that propose activities that need to be carried out to remove growth constraints and enable SMEs
to take advantage of new growth opportunities in these sectors. The ABADE program has agreed to
help the SME Directorate of MOCI to develop or update six action plans, including plans for:






Carpet sector
Agribusiness
Marble
Gemstones
Women in Business
One additional area – possible construction materials, wood products, or other emerging
industries
Working Groups: For each of the priority industry sectors targeted in the SME Development
Strategy, the SME Directorate will bring together a wide range of industry stakeholders – including
participants from government, the private sector, NGOs, and international donors – to participate
in Industry Working Groups that will help develop and implement Action Plans for their particular
industry sector.
These Working Groups will be comprised of both permanent members and ad hoc members. The
head of the SME Directorate of MOCI will serve as the Chairman of these Working Groups.
Normally they will meet at least six times per year to:




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Review developments in their industry
Monitor the status of efforts to implement the Action Plans
Identify specific problems and priorities that need to be addressed
Identify possible sources of financial and technical support

Promote cooperation among industry stakeholders and help coordinate business
development and policy reform activities
 Help plan or provide advice on steps that need to be taken to implement the Action Plan
for their industry.
Task Forces: As a key part of Action Plan implementation, MOCI and the members of the Working
Groups will identify industry leaders that are willing to participate in specialized Task Forces that
will spearhead efforts to solve the most pressing problems highlighted in the industry Action Plans.
For example, for the carpet sector, Task Forces will be needed to deal with serious problems related
to market access, transportation, and input supply. For the agribusiness sector Task Forces initially
will be needed initially to address constraints in the areas of food processing, packaging,
transportation, and access to finance. Other Task Forces will be organized as needed.
Task Forces will be organized by MOCI, in consultation with members of the Industry Working
Groups. They will play a lead role implementing the priority activities included in the industry
action plans
Purpose of Task Forces:

Help analyze specific problems that are affecting the growth of their industry -- such as
transportation, market access, input supply, legal and regulatory constraints, access to
finance, etc.
 Formulate solutions to the problems identified in the action plans and develop specific
plans for solving these problems
 Identify resources that are available to help solve industry problems, mobilize
stakeholders, and coordinate efforts to solve particular problems
 Take a lead role in carrying out specific activities or tasks that are needed to solve
particular problems that are constraining SME development and economic growth in their
industry.
 Monitor progress and report on results that are being achieved in solving the priority
problems included in the Action Plans.
Task Force Organization and Management



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Leadership: Two Task Force Leaders will be selected to head up each Task Force,
including at least one person from the private sector and one person from MOCI or
another relevant government ministry.
Duties and Responsibilities of Task Force Leaders: The Task Force Leaders will be
responsible for directing the activities of the Task Force, recruiting Task Force members,
working with members to develop plans for dealing with specific problems, making
assignments to work on specific tasks, coordinating stakeholder support, and reporting on
progress that the Task Force has achieved.
Member Roles and Responsibilities: Each Task Force will be comprised of 6-10
members. Task Force members will include industry stakeholders who are willing to
volunteer their time to actively work on developing solutions to the most urgent problems
identified in the Action Plans.
o Task Force members will be expected to meet together regularly, ideally at least
two times per month, to discuss the actions or tasks that need to be carried out to
solve the problems their Task Force is working on.
o Individual members will be given specific assignments or tasks they are expected
to carry out and will be expected to report on what they have found out or
accomplished during the next Task Force meeting.
o Task force members will be expected to collaborate with each other, as well as
with other SME owners and industry stakeholders, to identify solutions to
problems and carry out the specific actions needed to help solve these problems.
Examples of Priority Actions and Tasks for the Carpet Sector
The Carpet Sector Working Group: The Carpet Sector Working Group includes representatives from
various public sector, private sector, and international organizations (stakeholders) that have an
interest in the development of the carpet sector.
The lead agency on the government side is the Ministry of Commerce and Industry, with the
Director or the SME Directorate serving as Chairman of the Working Group. Representatives from
other government ministries that support carpet sector development (such as the Ministry of Rural
Development and Rehabilitation, the Export Promotion Agency of Afghanistan (EPAA), the
Afghanistan Investment Promotion Agency (AISA), and others) also participate as permanent
members of the Working Group.
Private sector representatives would be nominated from business associations and companies, such
as:
 The Afghan Carpet Exporters Guild
 The Afghan Carpet Manufacturers Association
 The Association of Carpet Weavers), ACCI, and leading private sector companies
 ACCI
 KCCI
 Leading carpet industry firms (TBD)
Participants from Non-Governmental Organizations (NGOs) that would be invited to serve as
members of the Working Group would be nominated from organizations such as:
 Good Weave
Participants from international organizations and donor-funded programs that would be recruited
to serve as members of the Working Group could be drawn from organizations such as:




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TFBSO
US DOC (Sheep to Shop Program)
ABADE
FAIDA
Carpet Sector Task Forces:
In meetings with carpet sector stakeholders that were conducted as part of the effort to develop
the Carpet Sector Action Plan, including the recent Carpet Sector Conference, problems in the
following areas were selected as being the most urgent ones requiring immediate action:
1. Improving access to markets – particularly in international markets
2. Reducing transportation costs
3. Improving input supply – for carpet washing chemicals and wool/yarn supply
Organizing Task Forces to address these priority problems:
The SME Directorate should consult with members of the Carpet Sector Working Group to identify
individuals who are willing and able to serve as Task Force Leaders and members. After contacting
these candidates, MOCI should extend formal invitations to those individuals who have indicated
that they are willing to serve on one of the three initial Task Forces that would be formed to help
solve the priority problems identified in the Carpet Sector Action Plan.
These initial Task Forces would include:



The Market Access Task Force
The Transportation Task Force
The Input Supply Task Force
Prior to the next Working Group Meeting, the Task Force leaders should conduct initial Task Force
meetings to develop initial work plans for dealing with one or more of the highest priority problems
in their areas of responsibility.
Following is a list of possible activities and tasks that might be undertaken by the Carpet Sector
Market Access Task Force,
Carpet Sector Market Access Task Force -- Possible Activities and Tasks –
Activity 1: develop an export marketing strategy for the carpet sector
Tasks:



A-3
Meet with leading exporters to review their current export marketing strategies and
methods
Conduct interviews with companies that have recently participated for the first time in
international trade shows to determine what they did, what they expected, what results
they achieved, what lessons they learned.
Organize a meeting with different stakeholders, EPAA, ACCI, Carpet Guild and donor
agencies and perhaps the Department of State of the United States to see what sources of


support are available to assist Afghan carpet dealers develop and implement more
effective marketing strategies
Prepare draft of written marketing strategy based on results of company interviews
Organize training program on successful export marketing strategies
Who:
Timeline: First Report to Working group should be provided on March 15, 2014.
Expected results: Carpet dealers have a better idea of what they need to do to succeed in their
international marketing efforts.
Activity 2: Develop new web portal for Afghan Carpets:
Tasks:




Conduct a survey of carpet dealers to determine how many carpet dealers currently have
websites and how effective they are in generating orders for their carpets
Meet with Afghan Carpet Guild to develop plan for creating a web portal for Afghan
carpet exporters
Investigate sources of funding to identify organizations or programs that could provide
cost-sharing support to develop and maintain the web portal
Talk to local web developers to determine how much it would cost for professional
services to develop and maintain a web portal for carpet dealers
Who: The taskforce should work closely with NMD and MOCI because this activity falls within the
scope of the NMD program. Mr. Shuaib the carpet specialist at MOCI and Saleem Sadat from ABADE
will also be closely involved in this activity.
Timeline: Provide report to the working group on March 15, 2014.
Expected Results:
Activity 3: Conduct Training Program on e-marketing for carpet exporters.





A-4
Conduct interviews with companies to determine how many companies are currently
using e-marketing tools, what they are doing, and what results they are achieving
Have the Carpet Guild contact its members to identify companies that would be
interested in participating in an e-marketing training program that would help companies
learn how to use e-e-marketing tools to identify and communicate with international
buyers.
Conduct a series of meetings with MOCI and Guild to identify the right participants
(exporters) for the training who have some knowledge of business.
Prepare TOR for training program
Identify funding source for training


Contract with training provider
Plan and conduct training program
Who: Task force members assisted by Saleem Sadat from ABADE and Shuaib the carpet specialist at
MOCI. ABADE C2 and NMD should work on this.
Time Line: The meetings will begin second week of February with MOCI and Guild and NMD. The
training should be delivered on 20th March.
Activity 4: Provide BDS services to help exporters develop websites

Meet with the NMD Program, Department of State and ABADE C2 to arrange for BDS
support to develop websites and provide technical support to help exporters develop web
content for listings on other e-commerce portals (Alibaba and others).
Who: Task force members TBD
Timeline: Begin Last week of March and continue working on it and provide report to Working
Group during the First Week of May.
Activity 5: Increase Participation in International Trade Shows and Improve Results




Develop schedule of trade shows for carpets and home products for the next 12 months in
target markets.
Identify sources of cost-sharing support that would enable carpet exporters to participate
on a regular basis in key trade fairs such as Domotex in Germany, the world’s premier
flooring trade show, and trade fair in other target markets (Dubai, Istanbul, U.S., South
Africa, others.)
Arrange for BDS support or training programs on managing participation in trade shows
to increase sales
In this activity we will have to involve the Guild and other Carpet Associations to work
together with us to arrange meetings with DOD, OXUS and NMD. Also need to arrange
meetings with MOCI, AISA, EPAA and ACCI.
Who: Task force members TBD
Time line: TBD
Possible Activities and Tasks for other Task Forces:
A-5
The leaders and members of the task forces for transportation and input supply should hold an
initial planning meeting to develop an initial list of activities and tasks that they plan to focus on
over the next three months.
The focus should be on activities that can be carried out immediately and are likely to produce
results in the near term.
Examples: Transportation Task Force
Activity 1: Conduct an assessment of current transportation arrangements and problems



A-6
Hold meetings and conduct interviews to collect information from companies, freight
forwarders, and shipping companies to collect accurate information on current shipping
procedures, regulations, costs (formal and unofficial), routes, and transit times for
different types of transport arrangements for carpets and agribusiness products
Assess current problems encountered when shipping to domestic and international
customers
Determine priority actions that are needed to develop more efficient, competitive
shipping and logistic channels.
Annex 4: Sample – Task Force Activities List
Note: The Task Force Activities List outlined below was developed for the SME Directorate Carpet
Sector Action Plan that is currently underway. As one of the first activities along with developing
the WSME Work Plan, the WSME Working Group and/or ad hoc Task Force should revise this Terms
of Reference to reflect specificity to WSMEs objectives.
Task
force #
Task
Force
one
Task
Force
Two
A-7
Activity #
by the
Taskforce
Activity 1
Actions
Task force
members
Start
Date
End Date
Deliverables
Develop a marketing
strategy for carpet
industry
Carpet
Guild,
NMD
Project,
ABADE
First
Week of
February
Marketing
Strategy
Activity 2
Develop new web
portal for Afghan
Carpets
NMD,
MOCI and
DOD
First
Week of
February
First Report
to Working
group on
March 15,
2014 and
Continue
First Report
to Working
group on
March 15,
2014 and
Continue
Activity 1
Conduct Training
Program on emarketing for carpet
exporters
ABADE,
GIZ
First
Week of
February
Third week
of March
Training
delivered on
20th March.
Activity 2
Provide BDS services
to help exporters
develop websites
and provide
technical support to
help exporters
develop web content
for listings on other
e-commerce portals
(Alibaba and others
(write
Last
names of week of
responsibl March
e
organizati
ons)
Report to
Working
Group First
Week of
May and
continue till
October
Websites
and web
contents
Developed
New web
portal
developed
Activity 3
Develop schedule of
trade shows for
carpets and home
products for the next
12 months in target
markets;
(write
First
names of week of
responsibl April
e
organizati
ons)
2nd Week of
May
A
comprehensi
ve Schedule
of Trade
Shows
provided to
the Guild
and
Associations
Activity 4
Develop cost-sharing
arrangements to
ensure regular
participation by
Afghan exporters at
key trade fairs such
as Domotex in
Germany, the
world’s premier
flooring trade show,
and trade fair in
other target markets
(Dubai, Istanbul,
U.S., South Africa,
others.
Work on improving
input supply.
Commence first
week of February
DODOxus,
NMD
First
week of
May
Continue till
the last
week of
October
Carpet
Exporters
participated
at least in
couple of
trade shows
as a result of
this action.
ABADE
Begin
first
week of
February
Continue till
October
Access to Finance
MOCI
Begin
First
week of
February
Continue till
the loan is
provided
1 yarn
spinning and
2 chemicals
company
supported.
Loan
Secured
Task
Force
Three
Activity 1
Task
Force
Four
Activity 1
END ACTION PLAN
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