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Annual Report 2008

From the President's Desk

It is my pleasure to present you the Annual Report of Afghanistan Investment Support Agency (AISA) which details our achievements during 2008.

In the report you will find a significant increase in the number of new registered investment enterprises, employment resulting from the investments, progress made by our Industrial Parks Development unit, and AISA's active participation in a number of domestic and international investments promotion events. In order to improve the quality of information disseminated by AISA, we have introduced measures to create a new data base system, and a national survey to determine the number of officially registered and unofficial enterprises operating in Afghanistan. I am grateful for the tireless efforts of the entire AISA team in their overall contribution and particularly to our Research and Policy Department for the preparation of this report.

Noorullah Delawari CEO of AISA

Annual Report 2008

1. Organizational Details
1.1 Structure

Afghanistan Investment Support Agency was created under the aegis of High Commission on Investment in September, 2003. In the post conflict environment a strong need was felt both by the Government of Afghanistan as well as the international community engaged in the re construction of Afghanistan for a well organized and efficient Agency for providing investment support services both to the domestic and the foreign investors in Afghanistan. Mr. Noorullah Delawari is the founding CEO of AISA and prior to his second innings with AISA he had served for a three years term as the Governor of the Central Bank of Afghanistan (Da Afghanistan Bank). CEO, AISA is assisted by Vice President (Investment) and Vice President (Administration). The organizational chart of AISA is at Annexure 1.
1.2 Functions

AISA deriving its mandate from High Commission on Investment has been entrusted with the responsibility of providing single window clearance for the investors seeking registration and investment related services in Afghanistan. The organization is geared up to the task of taking pro- active measures to attract investments both domestic as well as from abroad. The pre investment delivery of investment support by AISA is reflected year after year in the Doing Business indicator complied and published by World Bank annually. Though in line with other least developing countries Afghanistan ranks at 162 position in the year 2009, however, in the Starting a business ranking it is at 22nd position. This is way ahead compared to its neighboring countries like china (151 rank), India (122 rank) and Pakistan (77 rank). AISA as the pre investment facilitator of business can be credited for this achievement.
2.2 Departments

To attract facilitate and promote investment AISA has been structured in four Departments. The details of these Departments along with its function have been provided in the succeeding paragraphs.
Licensing Department

Annual Report 2008

Investment Promotion Department The Investment promotion Department disseminates information through conferences, exhibition and media campaign both with in as well as out side the country on various aspects of Afghan economy, sector policies and regulations. It also performs the task of match making between the companies and the investors. Research & Policy Department

The Research and Policy Department with respect to the investors provides them with sector specific investment opportunities after conducting studies in those sectors. On the other hand as a think tank and reform initiator it analyzes sector issues both of the real sector as well as the financial, monetary and trade sector. This it does to bring in time bound reforms which in turn would further private sector development in general and promote investments in particular.
Investor's Support Department

Investor's Support Department provides hand holding services to the individual investors through the entire pre and post investment phase. It provides initial advice and information to the domestic as well the foreign investors on the market situation, legal framework, custom duties and procedures, other taxes, availability of inputs and other support. In addition the Department during the course of establishment of any unit by the investors provides post investment support in matters like double taxation, visa and other specific issues.
Industrial (IPDD) Parks Development Department

In recognition of the efficient, effective and business oriented approach, the donor community mainly USAID and the World Bank have entrusted AISA with the task of developing modern and state of art Industrial Parks in the country. In order to accomplish this task an Industrial Parks Development Department ( IPDD ) was created in AISA in 2003. The Department is currently responsible for three USAID funded Industrial Parks in Kabul, Mazar and Kandahar. In addition with the support of World Bank the Department is developing Industrial Parks one each at Hissar-e- Shahi in Ningarhar and Kamari in Kabul. In discussion 2

Annual Report 2008

Major Activities

2. Major Activities Conducted During 2008

2.1 Road Seminars Shows and

As part of its investment promotion mandate, AISA during 2008 held eight international events/ road shows and organized several international and national conferences within the country. The road shows were attended by about 6060 foreign and around 187 local investors. In these road shows about 40 business match making meetings and 55 business to business meetings were held. These events were broadcasted by about 28 local and several foreign television channels. A brief detail on the important international events organized by AISA is given in the succeeding paragraphs.
2.1.1 Iran (12th-17 January, 2008)

Main objective of this road show was to create business to business relation between Afghan and Iran businesses, visit to manufacturing units and making Iranian investors aware of existing investment climate in Afghanistan. The president and CEO of AISA invited Iran's potential investors to invest in Afghanistan. The Afghan delegation was accompanied by different industry sector representatives including from private sector, Chamber of Commerce & industry and mines. A Memorandum of Understanding between Iran Chambers of Commerce & Industries and their Afghanistan counterpart on promotion of trade and investment was signed during this event.
2.1.2 Kuwait (4th-7 January, 2008)

The objective of the road show was to show case investment opportunities in Afghanistan to businessmen from Kuwait. The Afghan delegation was accompanied by about 17 representatives of private sector. This road show was a follow up to President of Afghanistan, H E Hamid Karzai's State visit to Kuwait during December, 2007. The Afghan delegation visited 3

Annual Report 2008

Major Activities

2.1.3 Ghana (18th- 21 April, 2008)


A delegation headed by Dr. Omar Zakhilwal participated in the World Investment Forum (WIF) International Conference in Accra, Ghana from 18-21 April 2008.The conference was organized by WAIPA and UNCTAD. Delegates from about 192 countries which included business leaders, representatives of chambers of commerce and economic consulates participated in the conference. AISA was awarded the second best activity award at the WIF event.
2.1.4 France & Netherlands (3 -19 June, 2008)
rd th

The investment promotion road show to France and Netherlands was held from 3-19 June within the framework of Paris Donors Conference and Paris Business Conference. The Afghan delegation was led by the President of Republic of Afghanistan H E Hamid Karzai along with about 35 representatives of private sector. Dr. Omar Zakhilwal the President of AISA also accompanied the President of Afghanistan. The Investment promotion Department of AISA provided the opportunities for meeting of business societies of Afghanistan with investors and chambers of commerce and other officials from Holland and France. The main purpose of Paris Business Conference was to make the investors aware in France and Netherlands about the existing investment potential in Afghanistan in different sectors such as agribusiness, construction, mineral resources, banking & financial services and trade. The conference highlighted the business environment and major challenges in doing business and investing in Afghanistan and how some of these challenges such as inadequate power supply and low access to credit can be converted into investment opportunities for the private investors. The investment promotion road show to Europe was aimed at attracting the Dutch and French investors and their business societies interested to investing in Afghanistan. The delegates from about 80 countries par ticipated in this c o n f e r e n c e . I n t e r n a t i o n a l d o n o r community pledged about 20 million US dollar for development projects in the next five year in Afghanistan.

Annual Report 2008

Major Activities

2.1.5 Kabul (20th-23rd August, 2008)

AISA actively participated as partner in the Kabul International Agro Fair. AISA had a pavilion in the exhibition. A large number of domestic and international business delegates participated in the Agro Fair.
2.1.6 Kabul 2008) (12th October,

AISA arranged conference in the Ministry of foreign affairs on 12th October, 2008. In this conference 17 executive delegates from UAE including the ambassador of Afghanistan in UAE were invited. This business delegation met President of AISA and other representative from Ministry of mines, water & energy, agriculture & livestock and discussed and explored possibilities of funding projects. The basic aim of the conference was to study the investment opportunities in these sectors. UAE promised investment to the tune of 250 million dollars in construction, power, agriculture, mines, transport and banking & insurance.
2.1.7 Turkey 2008) (23rd-26th October,

Turkey hosted an international exhibition of business and industry in Istanbul. The delegation from Afghanistan included about ten representatives from the private sector. The private sector participants represented companies doing business in the area of machinery & machine tools, computer, automation, spare parts, electrical devices, leather, carpets, construction, construction materials, furniture, food, and services sectors.
2.1.8 China 2008)



The 12 international exhibition of business and investment was organized in Sheyamin, China. The Afghan delegation besides one representative from AISA comprised of 5 representatives from the private sector. H

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Annual Report 2008

Major Activities

The products of more than 100 countries were displayed in the exhibition. AISA during the exhibition and the business meetings widely disseminated information relating to investment opportunities existing in Afghanistan.
2.1.9 India 2008)



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The 28 India International Trade Fair was held between 14 to 24 November in New Delhi, India. The Afghan delegation was accompanied by representatives of about 30 companies from different sectors of Afghan economy which included dried fruit, carpet, handicrafts, embroidery, precious and semi precious stones, saffron and olive oil. Saffron from Afghanistan attracted lot of business interest from Indian traders. National and international media in India welcomed the Afghan products especially Afghani carpets, dried fruits and saffron. Representatives of private and public sector of 32 countries participated in the exhibition. Afghanistan's stall covered about 270 M square and was adjusted the second best stall in the exhibition. AISA received the award from the Minister of commerce and Industries, Government of India.

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Annual Report 2008

Major Activities

2.2 Investor Activities

During 2008, AISA offered individual client services for investors in the pre & post investment phases. The services also include mediations and advice for the investors in different fields' i.e. legal framework, taxation and investment incentives. The main support activities provided by AISA during the year 2008 have been as under: mediation for companies registered with AISA. ? Facilitating the issue of visa by the Ministry of Foreign Affairs for the foreign workers working in companies registered with AISA. ? Issuing certificates to the units which are active. This certificate enables these units to prove their functional status. ? Verifying the correct status of the companies through field visits about their activities, volume of production etc. ? Liaison with revenue and custom Departments of the Ministry of Finance to facilitate the exemption of custom duty for industrial machinery and resolving issues relating to taxes. ? Assisted in the issuing of work permits to foreign workers from Ministry of works and Social affairs for companies registered in AISA. ? Provided assistance and handholding in the establishment of poultry project in Nangarhar province. ? Organized workshops and seminars to guide and solve problems of investors in the area of income tax, corporation tax and custom duty payment. ? Introduced international construction companies to the ministry of Urban Development to take part in the construction of Deh Sabz project. ? Facilitate import of raw materials and machinery for companies by sorting out issues with custom houses across the country. ? Shared the problems and obstacles faced by the investors with the relevant authorities with a view to streamline the system
? Resolution and settlement of commercial disputes through

Annual Report 2008

Industrial Park Activities

2.3 Industrial Park Activities

The Industrial Parks Development Department (IPDD) of AISA is working to develop and offer modern, strategically located, well equipped industrial parks. IPDD has developed/ is developing Industrial Parks at Bagrami, Mazar-e- Sharif, Kandahar, Hissar-e- Shahi (Jalalabad) and Kamari (Kabul). Bagrami Industrial Park is located 7.5 km east of Kabul covering 24 hectares (52.8 acres). Kandahar industrial park is located 10 km east of city of Kandahar and covers about 400 hectare of land. Balkh Industrial Park is located 7 km north of Mazar-e-Sharif extending over an area of about 36 hectares. Hissar-e-Shahi Industrial Park is located 22 km south east of Jalalabad city. Government of Afghanistan has approved an improved process of selection of investors, allotment of plots, pricing of plots, lease tenure and management of Industrial Parks in line with international best practices. The new selection process of investors in the Industrial Parks would be based on measurable criteria with suitable weights assigned to these criteria. This process would eliminate those investor who are not credible to establish industrial units and carry out production. To ensure transparency process the investor's selection committee would be reconstituted so that it has representatives in the committee from agencies other than AISA/IPDD. With regard to ownership of plots, the allotment of long term lease extending up to fifty years will be provided based on international best practices. New ways of financing and developing Industrial Parks would be explored. In this regard, the Industrial Parks development Authority in due course would experiment with the funding of Industrial Parks development through Public Private Partnership (PPP). In a PPP venture the funding of the Industrial Park will be through partnership and cost and risk would be shared between the Government and the private sector companies.

Annual Report 2008

Developments Activities

2.4 Human Resource Development. Staff Training and Career Development

Strategic skill improvement is a key factor in ensuring the organization's success in a rapidly changing world. AISA is committed to developing and further nurturing the skills of its employees at a pace that would sustain the competitiveness of the organization. Development of appropriate skills should not just be seen from an individual perspective but in the context of its overall usefulness for the organization. Some of the key training programs attended by various officials of AISA are as under:
Vice President (Investment)

!Attended Training Program on International Investment Agreements and Dispute Settlements (Jordan)
Vice President (Administration)

Went for a study tour on Qualified Investment Zone and Special Economic Zone (Jordan) ? Attended South Asian Regional Initiative for Energy Program (Bhutan)

Director, Investment Promotion

? Went for WAIPA Study Tour Program (Japan)

Director, Research & Policy

? Attended UNITAR Fellowship Program on Organization Development

(Japan); ? Attended a conference on ECO high level expert group On privatization of ECO member countries (Pakistan).

Media Manager

? Attended a course on Web Design & Management.

Investment Support Manager

? Attended World Trade Organization training (Ministry of Commerce &

Industry) Workshop on COMFAR 111 Software (Finance) attended by about 21 senior to middle level employees. Global Distance Learning Network (GDLN) Program 9

Annual Report 2008

Developments Activities

2.5 Internship Program

HR Department of AISA is also providing opportunities to the students from various local and foreign educational institutions to work in different departments of AISA and on different issues such as investment climate, investment opportunities, investment support and promotion. The basic aim of this short term internship program is to supplement the theoretical class room knowledge with practical training. A total of 25 internees have successfully completed their internship in AISA during 2008.


Annual Report 2008

Macro Economic Environment

3. Macro Economic Environment

3.1 The Scenario Global Macro Economic

The world economic crises of past one and a half year are having a tremendous negative impact on the trade and capital flows to developing countries. The turmoil which initially started in the credit market of United States quickly snowballed into major world wide financial and economic crises. During 2009, as per the Global Development Finance Report of 2009, global output of goods and services is expected to shrink by about 2.9 percent. Unemployment which is soaring in the developed countries would get transmitted to the export dependent economies of China and other East Asian economies. GDP growth in developing countries is projected to slow sharply but would remain positive during 2009. However, if India and China are excluded, the growth rate in GDP in remaining developing countries is projected to remain in negative domain. The reversal in the capital flow during 2009, the collapse in the stock markets and deterioration in the financing conditions has brought investment growth in the developing countries to a halt. This is also reflected in the private capital FDI into Afghanistan which has come down to USD 108.6 million in 2008 compared to USD 207.4 million in 2007.
3.2 Macro Afghanistan Economic Indicators in

During 2008-09 the GDP at constant prices increased by 2.3 percent in Afghanistan compared to an increase of 16.2 percent in 2007-08. The main reason for the slump in the GDP growth rate during 2008-09 is because of 16.5 percent negative growth in agriculture production. The Industrial production increased by 7 percent in 2008-09 compared to 7.2 percent in 2007-08. Similarly services sector including others increased by 16.2 percent in 2008-09 compared to 14.8 percent increase in 2007-08. The sector wise growth figures for 2008-09 and Gross Domestic Product at constant prices( 2002-03 prices ) in 2007-08 is given below:
Source: Central Statistics Organization of Afghanistan


Annual Report 2008



Afghanistan is primarily an agriculture based economy. More than two third of the population subsides on agriculture. The share of agriculture in the gross GDP is about 31 percent, whereas of services sector was 41 percent during 2008-09. Industry with a share of about 25 percent in the GDP ranks third. Since the year 2008-09 was a drought year, the cereal production which has a weight of 27 percent in the GDP declined by more than 20 percent in 2008-09 compared to about 29 percent increase in the previous year. In spite of the drought the fruits and livestock production increased by 5 percent and 3 percent respectively in 2008-09. The current year is marked by a good harvest of cereals mainly wheat and therefore it is expected that agriculture during 2009-10 may witness a sharp recovery. With the recovery in agriculture sector the overall growth rate in GDP would rebound back to earlier levels. None the less for a consistent agriculture growth it is essential to attract investment in agriculture. Only about 8 % of the total arable area is irrigated in Afghanistan. Public investment supplemented by private investment is required in irrigation and water harvesting. The contribution of industrial sector in the GDP was about 25 percent in 2008-09. With in industrial sector the contribution of manufacturing to the GDP is 15.6 percent followed by construction at 9.2 percent. The share of food and beverages in total manufacturing is about 95 percent. This means that growth in manufacturing is totally dependent on the growth of food and beverages sector. The construction sector is considered a part of the Industry sector in Afghanistan, whereas in rest of the countries of the world it is part of the service sector. Probably the construction has been included in the industrial sector because of its linkages with the building material manufacturing including cement, steel, bricks, tiles, sand and aggregates, fixtures and fittings, paints and chemicals and construction equipment. The construction sector in Afghanistan with a weight of about 9.2 percent in the GDP has been growing at a rate of about 10 percent during 2007-08 and 2008-09. The predominance of construction is not unusual in post conflict countries like Afghanistan. Not only there is need to rebuilt infrastructure in Afghanistan but often it is directed into construction because of lack of other investment opportunities. The share of the Services sector in the GDP at 41 percent is highest compared to other sectors. However, in a classical growth pattern, any least developed economy from a preponderant agrarian economy should first become an industrial economy and finally a service sector dominated economy. One of the inherent disadvantages of service sector led growth is lack of capacity in providing high employment.

Annual Report 2008

Investment Overview

4. Investment Overview
4.1 Trend Registration In Initial Capital

AISA since its inception in 2003 has been registering businesses along with initial proposed detial on capital and employment. The initial capital registered with AISA since 2003 as furnished by the registering companies, which includes both domestic as well as foreign, is given below:
Table 4.1.1
Total Investment in (Million US$) Registered in Afghanistan(2003-2008) Sector 2003 2004 2005 2006 2007 2008 721.98 656.69 565.41 1179.45 646.7 392.12 Total Initial capital 239.03 421.88 388.49 770.21 439.34 283.54 Domestic 52.09 195.42 201.45 131.58 141.41 167.78 Construction 37.91 92.31 43.51 99.36 243.18 70.68 Services 131.76 125.04 130.52 531.16 45.39 35.89 Industry 17.26 9.1 13.01 8.1 9.34 9.18 Agriculture 482.95 234.81 176.92 409.24 207.36 108.58 Foreign Construction 188.75 112.63 74.62 86.61 33.67 54.35 Services 63.42 88.61 52.53 256.85 130.11 37.97 Industry 14.87 32.27 48.1 29.62 7.61 13.07 Agriculture 215.9 1.28 1.65 36.14 35.96 3.19 Total 4162.35 2542.49 889.73 586.95 999.76 65.986 1619.86 550.63 629.49 145.54 294.12

The total initially proposed investment in Afghanistan has followed a downward trend since 2003 except for the year 2006. In 2006 both domestic as well as foreign investment took an upward swing but again came down in 2007. The domestic investment in 2007 at USD 439.3 million though less than the level achieved in 2006 has been more compared to all the three years between 2003 to 2005. Therefore, if we put a best fit curve the level of initial domestic investment proposed by the companies would be upward sloping between the years 2003 to 2007. The foreign direct investment in Afghanistan has been falling all along except for the year 2006. It has fallen from the level of about USD 483 million achieved in 2003 to USD 108.6 million achieved in 2008. Most of the FDI which comes into Afghanistan is by those companies which are providing logistics or act as contractors of the UN, USAID, foreign NGOs or other donor agencies. Except for the year 2003 the share of domestic investment compared to foreign investment in the total investment has always been higher. Foreign investment as a percentage of total investment from 67 percent


Annual Report 2008

Investment Overview

4.3 Sector Wise Trend In Investment (2003 To 2008)

As per the available data on total initial investment (FDI and domestic) registration, construction sector attracted about USD 1.4 billion during 2003 to 2008, accounting for about 35 percent of the total investment. Services sector registered investment worth USD 1.22 billion (29% of the total). Industry with the total of USD 1.15 billion accounted for 28 percent of the total registered investment, while agriculture sector attracted only USD 360 million. The composition of the total registered investment during 2003 to 2008 is given in the pie diagram:
Composition of Total Investment By Sector 2003-2008

Agriculture, 9% Construction, 35% Industry, 28%

Services, 29%





Table 4-3.1 4.4 Sector Investment Wise Composition Of Domestic

Though overall construction sector was able to attract highest cumulative investment (domestic and foreign put together) but in the domestic investment the industrial sector at about USD one billion accounted for about 39 percent of the total domestic investment between 2003-08.This was followed by construction (35%), services (23%) and agriculture (3%). The sector wise domestic composition of investment is furnished below in the pie diagram:
Composition of Domestic Investment By Sector, End December 2008

Agriculture, 3% Industry, 39% Construction, 35%


Table 4-4.4

Annual Report 2008

Investment Overview

Percentage Share of Domestic and Foreign Investment (2003-2008) 1 0.8 0.6 0.4 0.2 0 33% 2003 2004 2005 2006 2007 2008 36% 67% 64% 69% 65% 68% 72% 31% 35% 32%


4.2 Province Investment

Initial Capital in US$

The distribution of total investment across provinces has been highly skewed in favor of Kabul. About 82% of the total private investment is concentrated in Kabul followed by Herat (4%), Kandahar (3%), Balkh (3%) and Nangarhar (2%). The concentration of new investment in Kabul is because of better infrastructure, improved electricity and better security compared to the other provinces in Afghanistan. In addition as a big consumption center, Kabul is a preferred investment destination for consumer goods producing units. Province wise distribution of registered investment since 2003 is given below:
Distribution of Total Investment By Provinces (2003-2008)








Uruzgan Zabul



Sari Pul








Year Domestic Foriegn

Table 4-1.4 Wise Distribution Of

3500 3000 2500 2000 1500 1000 500 0


Annual Report 2008

Investment Overview
Composition Of Foreign

4.5 Sector Investment


Total private foreign investment during the period during 2003 to 2008 has been USD 1.62 billion. Services accounted for (39 percent) of the FDI, followed by construction (34 percent ), agriculture (18 percent ) and industries (9 percent ) The following chart shows the composition of total FDI flow into Afghanistan between 2003-08:
Composition of Forign Investment By Sector 2003-2009

Agriculture, 18% Construction, 34% Industry, 9%

Services, 39%





Table 4-5.1 4.6. Foreign Destinations Investment By Major

Out of the total of about USD 1.62 billion registered with AISA as FDI, about 19% has emanated from Turkey followed by UAE (17%), USA (16%) and Canada (16%). The pie chart given below provides details on country wise share of FDI:
Composition of FDI By Major Countires, By End 2008

Canada, 16% China, 8%

Kenya, 3%

America, 16%

UAE, 17%

England, 2% Turkey, 19% Pakistan, 7% Iran, 9% India, 3%


Annual Report 2008

Investment Overview

Joint venture has been a preferred arrangement of bringing FDI into Afghanistan. The support of an Afghani partner under a joint venture arrangement has been seen as adding value to the business as the local partner in the joint venture brings the local knowledge which is so very essential in any successful joint venture. Out of the total FDI of USD 1.62 billion about USD 294 million has come through joint venture arrangement. Out of the total joint venture FDI about 26.2% are through Afghan- USA joint venture followed by Afghan- Iran (22.6%). The chart below provides the details on the joint venture investment into Afghanistan.
Composition of Investmetn By Major Joint Ventures, End December 2008

Canada-France, 17.0% A fghan-Germany, 7.0% A fghan-A merica, 26.2%

A fghan-Iran, 22.6% A merica-Russia, 1.9%

A fghan-Turkey, 9.9% A fghan-Tajikistan, 2.7% A fghan-P akistan, 3.6% A fghan-Syria, 5.5% A fghan-Kazakhstan, 3.8%

Afghan-America Afghan-Syria Afghan-Turkey Canada-France

Afghan-Iran Afghan-Pakistan America-Russia

Afghan-Kazakhstan Afghan-Tajikistan Afghan-Germany

4.7. Trend in Registration of Companies with AISA

Table 4-6.2

During 2003 the number of companies registered with AISA was high. During 2003 a total of 3243 companies were registered with AISA out of which 1474 were domestic and 1769 were foreign companies. The reason for such high level of registration was: i) high expectation of investors about future prospects of reconstruction and economic development in Afghanistan; ii) large number of the then existing companies (especially domestic) also applied for registration. The following table shows the number of companies registered during the past six years:
Total No. of Companies Registered in AISA (2003-2008) 2003 2004 2005 2006 2007 2008 Sector Total Companies 3,243 1,388 2,486 2,252 2,276 2,720 Total 14,562

Domestic Construction Services Industry Agriculture Foreign Construction Services Industry Agriculture

1,474 596 611 118 149 1,769 796 717 30 226

1,139 556 149 401 33 249 94 118 34 3

2,107 1299 218 543 47 379 110 171 68 30

1,748 1052 229 421 46 504 168 248 79 9

2,083 1351 375 319 38 193 72 93 23 5

2,429 1577 461 351 40 291 90 157 35 9

11,168 6,547 2,075 2,157 389 3,394 1,332 1,506 269 287

Table 4-7.1


Annual Report 2008

Investment Overview

Total number of companies being registered in AISA emerges out from the table given above. Out of 11,168 companies registered with AISA during 2003-08 about 30 percent are foreign and rests are domestic companies. Construction companies account for about 54 percent of the total registered companies followed by services (25 percent), industry (17 percent) and agriculture (4 percent).The reason for less registration of companies in 2004 may partially be attributed to war in Iraq which generated negative investment sentiments amongst the investors in this region. However as a result of London and Paris conference of donors in 2005 and 2008 respectively there has been renewed and enhanced donor pledges for their contribution towards Afghanistan. This to some extent helped in maintaining positive expectation amongst the investors and therefore helped in maintaining the registration level of companies in the range of 2250 to 2750 during 2005 to 2008.
4.8. Trend Creation On Proposed/actual Employment

As per the information provided by the investors at the time of renewal of license and grant of initial license more than 600,000 jobs have either been created or are proposed to be created by the companies registered with AISA. The initial euphoria of 2003 when companies proposed to create more than 250,000 jobs gave way to more realistic job creation numbers ranging between 47,000 to 90,000 per annum during the subsequent years. Another reason for the fall in proposed employment could be because of the companies engaged in construction sector started shifting to more capital intensive technology. Increasing use of technology to remain competitive in the short to medium term may have had adverse impact on employment creation. This to some extent explains less than proportionate increase in employment compared to the increase in investment. Sector wise employment proposed/ created by the companies registered with AISA between 2003 to 2008 is given below:
Total No. of Employees Created by Registered Companies in AISA (2003-2008) Sector 2003 2004 2005 2006 2007 2008 Total Total Employees 254,612 89,752 86,458 67,933 46,812 80,191 627,991 Domestic 83,548 55,008 71,477 42,656 38,151 43,636 336,553 Construction 32916 28611 42759 22885 20080 29359 177,665 Services 31912 8701 7175 5032 8279 4818 66,539 Industry 9695 16580 20508 13736 9003 6970 76,649 Agriculture 9025 1116 1035 1003 789 2489 15,700


Annual Report 2008

Investment Overview

5. Accelerating Domestic And Foreign Investment- The Problems And What Needs To Be Done
5.1 Strong Growth Private Sector

Entrepreneurial spirit is alive in Afghanistan. Investment opportunities are being exploited both by domestic as well as the foreign investors and jobs are being created. However, keeping in view the opportunities the performance level is still modest. World Bank in partnership with DIFID carried out an Enterprise Survey that took place from September to November 2008, covering 1066 firms across 10 Afghan cities. The key finding of the Survey is that there is a strong private sector growth in Afghanistan despite poor governance, weak factor markets and lack of innovation. The Survey while recognizing the constraints inhibiting growth points towards a strong consumer demand arising from aid flow and catch up effects of the economy moving from command to market mode. The World Bank Survey in its key findings mentions that the enterprises are showing high level of dynamism and are dominated by agribusiness, construction and trading. The latent dynamism in the private sector is well reflected in the Survey results were 77 percent of the surveyed firms have plans to expand in

6. Major Problems Confronting Private Sector: What Needs To Be Done

The investment climate Report of 2005 and the Enterprise Survey Report of World Bank points towards certain constraints which needs to be tackled to create a more conducive environment for growth and private sector development in Afghanistan. This Annual Report would elaborate on some of the major factors which impinge on private sector growth and investment.
6.1 Improved Inputs Access To

Access to the factors of production like land, finance, skilled labor and infrastructure items like power and roads are crucial to sustained investment and growth. Improved access will require an expansion in the supply of and a more transparent process of allocating them.
6.1.1 Land Access to


Annual Report 2008

Investment Overview

fact that in 2005 about 56% of the firms reported access to land as a severe constraint, however, in 2008 only 41% of the firms mentioned access to land as a major impediment. With in sectors, construction sector is relatively more constrained with respect to land access. The severity of this constraint is reported to be higher for medium and large firms than for small and micro firms. Reforms PropertyRrights in the

Land related legal reforms are complex and highly time consuming as it requires rebuilding and administration of deeds, putting in place satisfactory dispute resolution mechanism and enforcing judicial decisions. While Government is committed to establishing a land tenure system, the Industrial Parks development has partially ameliorated the land and infrastructure constraint faced by the private investors. All investors in any Industrial Park after fulfilling the conditions relating to allotment of land and paying land charges would get the transfer of land title in their favor. Therefore, in the limited context of Industrial Parks development, access to clear land title is not a major issue.
6.1.2 Access Finance to

Access to formal source of credit is not very significant despite recent advances in the financial sector. Though in the last three to four years there has been marked improvement in the access to finance as perceived by the firms. As per the Enterprise survey of World Bank about 51% firms in 2005 had put access to finance as a major constraint. This figure has come down in 2008 and only about 40% of the respondent firm perceived access to finance a severe constraint. There has been progress in terms of financial deepening as about 51% of the enterprises reported having a bank account in 2008 compared to only 30% in 2005. What is notable is that about 97% of the enterprises having a bank account are satisfied with the services provided by the banks. Reforms Sector in the Financial


In spite of the moderate success in access to finance it also remains a fact that only a very small percentage of the Afghan enterprises have a loan with the financial institution. This is reinforced by the findings of the World Bank's Doing 2009 report which ranks Afghanistan at 178 of 181 countries in Getting credit.

Annual Report 2008

Investment Overview

available to vast majority of firms until institutions supporting such a system are adequately developed. Thus reforms in this area must extend beyond company's law and extend to institutions underlying transparency and accountability that will give the investors the confidence to invest. Not much long term financing is available from commercial banks. Most offer a term of year or less. There is a small number of non bank financial institutions (15 micro finance institutions, one credit union and one leasing company), but these institutions meet only a very small fraction of the credit needs. There are no credit bureaus or credit rating agencies though work is underway through Da Afghanistan Bank (DAB) to initiate the process of launching a credit bureau. There are no arrangements for valuing and enforcing collaterals (and especially mortgages) and no information on the credit history of the clients. These deficiencies raise the transaction costs of the banks offering credit and other services and increase the risk of adverse selection. The currently limited access to finance and high cost of financing present a major challenge and DAB has recognized the existing weaknesses and has made efforts towards reforming the legal framework by drafting Secured Transactions and Negotiable instruments laws. The Secured Transaction (Movables) Law will address leases, sales on consignment, vendor sales with retention and bank financing. It will create a central registry to register charges and provide for enforcement in liquidating collateral. The Secured Transactions (Immovable) law will clearly define mortgage transactions and Negotiable instruments law would cover promissory notes, cheque and bills of exchange. Since practically all lending is backed by collateral, legislation to facilitate the use of collateral is particularly important.
6.1.3 Access Electricity to

Electricity is a major constraint in conducting efficient business in Afghanistan. The World Bank Survey indicates that about 66% of the surveyed enterprises in 2008 indicated power outages as major impediment to doing business compared to about 64% in 2005. Although several initiatives have been undertaken to improve the quality and quantity of electric supply yet it remains a major obstacle to growth of business operations. Reforms Issues in the Power Sector


Annual Report 2008

Investment Overview

Human development and training programs are being conducted to improve and update employees' skills to enable them work efficiently under a commercially oriented work program. The T& D losses in the power sector in Afghanistan is huge. It would be the endeavor of the commercialized company to bring down the T&D losses to acceptable limits. This would be done by making investment in the transmission and equipments. It is imperative that all power supply to the consumers is metered on top priority basis. Energy audits needs to be carried out to identify areas where there is maximum opportunity to reduce losses and thereby collect more revenues. It is critical that requisite baseline data such as category wise consumption levels, T&D losses, quality of receivables and collection efficiency is accurately assessed at regional/zonal/sub zonal levels. The reforms may also emphasis on demand side management with the objective of improving efficiency in end-use of electricity. Focus on demand side management reduces the need for additional generation capacity. Electricity saved is more beneficial than electricity generated particularly considering the benefits of avoided T&D losses and saving in fuel through positive impact on environment. DABM should take extensive consumer awareness campaigns on energy conservation measures. The key element of reform needed in the power sector is tariff rationalization to enable the sector to move towards recovering its average cost of supply. The broad guidelines in this regard may include: i) tariffs should progressively reflect the cost of supply, ii) consumers interest should be safeguarded while reducing cross subsidies, iii) competition, efficiency and economic use of resources should be encouraged. The process of reforms in the power sector cannot achieve the desired results overnight, nor the changes be brought overnight. The reforms in the power sector have been initiated with the corporatization of DABM. However, it would take about four to five years of reforms to meet the objectives of reforms process. The success of reforms in the power sector would depend on its acceptance by all stakeholders including, Government, donors, consumers, and the employees.
6.1.4 Trade Investment and

A country's trade policy is a key to effective participation in the global 22

Annual Report 2008

Investment Overview

delays and administrative delays are eliminated. It is basically with this idea that Government of Afghanistan is actively considering building up of Export Processing Zones (EPZs). Government of Afghanistan is also aware of the immense possibilities in export promotion which would be generated consequent to creation of Reconstruction Opportunity Zones (ROZs) which would cover whole of Afghanistan. All goods produced in the ROZ would have duty free access to the US markets. For export promotion the EPZs besides having well developed infrastructure would also have 100% custom duties exemption on import of raw material and machinery being used by the EPZ units. AISA in this regard has carried out a preliminary exercise and has identified some defunct SOEs which can be converted into Economic Zones/EPZs.
6.1.5 Present Tariff Structure in Afghanistan Is it Conducive to Industrial Growth

In 2004, Afghanistan passed new custom legislation in compliance with international standards and best practices and became a member of the World Customs Organization (WCO). Harmonized System (HS) of classification (HS2002) was introduced. The new tariff schedule had six tariff bands with rates varying from 2.5% to 16% with some prohibited goods. About 50% of the tariff lines had duty of 2.5% or less and about 43% with duty rates between 2.5% to 5%. The duty rates were of less cascading and, therefore, inverted in nature i.e. on several raw materials and intermediate goods the duty rates were higher than on finished goods. This anomaly to some extent has been removed in 2007 when a cascading duty structure was introduced. However, the number of tariff lines went up from 7 to 12. The details of the present tariff schedule are as under:
Afghanistan Tariff Schedule, 2007 No. of tariff lines Percent of tariff lines 43 0.83 25 0.48 1671 32.14 46 0.88 2104 40.47 27 0.52 1087 20.91 5 0.10 170 3.27 6 0.12

Tariff Rates Prohibited 0% 2.50% 3.50% 5% 8% 10% 12% 16% 20%


Annual Report 2008

Investment Overview

There is a scope of reducing the number of tariff lines and bring it in line with the tariff lines existing in other countries of this region. However, the cascading rate structure should continue. At any point of time, tariffs on inputs should be lower than (or at least equal to) the tariff on finished products. More generally, tariffs on products are vertically linked through input-output relations should have a cascading shape from high to low according to their position in the production process. The domestic producers (FDI or domestic) in Afghanistan suffer from certain inherent bottlenecks in terms of poor infrastructure, high skilled labor rates, transportation and logistics and, therefore, level playing field demands that on these products the duty rate should be such that it compensates at least partially the domestic producers against the extra cost incurred for the bottlenecks. Afghanistan Government is aware that in a vertically linked industrial structure, protecting one industry often hurts the other. Upstream protection impairs the competitiveness of downstream industries through higher cost. Unbridled protection is also against the interest of the consumers. The Government, therefore, bears in mind the tradeoff in tariff policy formulation. In this regard it would be the endeavor of Government of Afghanistan to strike a balance between two interest groups i.e. producers and the consumers, information about the industry including rough estimates of the cost and benefit of protection, are again valuable.


Annuzal Report 2008




Annual Report 2008


Total Investm ent By Provinces (FD I+D D I)

N o. of C o m panies pany 59 18 106 530 56 1 73 43 99 16 225 846 57 7,854 818 38 184 96 146 46 18 821 16 13 51 111 5 95 9 8 42 17 29 35 12,581 N o. of E m p loyees 775 264 1,578 16,330 563 4 1,565 834 2,323 151 4,711 21,194 2,243 290,077 22,402 473 5,922 1,287 3,025 859 474 23,056 385 101 892 2645 66 7339 245 77 822 212 450 593 413,937 % age Share of Investm ent 0.1% 0.1% 0.4% 2.7% 0.1% 0.0% 0.2% 0.1% 0.2% 0.0% 0.9% 3.9% 0.4% 82.5% 3.6% 0.1% 0.6% 0.1% 0.5% 0.1% 0.0% 2.3% 0.1% 0.0% 0.1% 0.2% 0.0% 0.3% 0.0% 0.0% 0.1% 0.0% 0.0% 0.1% 100% % age Share of Com 0.5% 0.1% 0.8% 4.2% 0.4% 0.0% 0.6% 0.3% 0.8% 0.1% 1.8% 6.7% 0.5% 62.4% 6.5% 0.3% 1.5% 0.8% 1.2% 0.4% 0.1% 6.5% 0.1% 0.1% 0.4% 0.9% 0.0% 0.8% 0.1% 0.1% 0.3% 0.1% 0.2% 0.3% 100%

S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34


Initial C apital 5,507,479 2,265,524 17,595,846 105,777,411 2,989,900 50,000 9,037,153 4,495,504 8,204,053 1,715,400 34,604,194 154,012,964 14,769,650 3,278,326,851 142,486,428 3,026,572 22,954,650 5,775,500 20,245,144 2,998,118 1,762,640 90,581,612 4,058,070 518,000 4,316,100 8581822 1197000 10552304 1525000 1240000 4008015 1735000 1341500 5907000 3,974,162,404

Badakhshan Badghis Baghlan Balkh Bam yan Daikondi Farah Faryab G hazni G hor Helm and Hirat Jawzjan Kabul Kandahar Kapisa Khost Kunar Kunduz Laghm an Logar Nangarhar Nim roz Nuristan Paktika Paktya Panjshir Parwan Sam angan Sari Pul T akhar Uruzgan W ardak Zabul Total Source: RP D , AIS A , K abul D ate: January 2009


Annual Report 2008

Afghan-Lebanon Afghan-Latvia Afghan-Macedonia Afghan-Nepal Afghan-Netherlands Afghan-New Zealand Afghan-Norway Afghan-Pakistan Afghan-Philippines Afghan-Poland Afghan-Russia Afghan-Slovakia Afghan-Sierra Leone Afghan-Singapore Afghan-Sweden Afghan-Switzerland Afghan-Syria Afghan-Tajikistan Afghan-Turkey Afghan-Turkmenistan Afghan-Uganda Afghan-Ukraine Afghan-Uzbekistan Afghan-Yugoslavia Albania America America-Bulgaria America-Canada America-China America-Dubai America-England America-Germany America-India America-Iran America-Israel America-Korea America-Lebanon America-Pakistan America-Russia
3,220,001 100,000 7,850 1,240,650 4,368,500 700,000 5,080,020 10,518,900 1,940,000 4,500,000 13,915,000 200,000 100,000 470,000 10,000 1,208,000 16,100,000 7,850,000 29,199,801 200,000 200,000 11,528,600 2,367,600 10,000 70,000 110,916,697 7,500 1,400,000 8,000 3,100,000 600,000 1,500,000 250,000 200,000 16,000 10,000 11,000 1,318,100 5,600,000 4 4 3 1 2 4 1 3 1 1 1 6 1 1 8 11 1 6 43 3 4 12 1 1 1 1 3 2 12 43 1 1 10 7 1 2 135 558 7 9 82 331 24 107 748 148 74 937 5,000 7 103 6 19 291 222 2,283 10 66 416 231 9 7 30,743 22 277 8 6 701 15 557 5 20 7 25 443 530

0.08% 0.00% 0.00% 0.03% 0.11% 0.02% 0.13% 0.27% 0.05% 0.12% 0.36% 0.01% 0.00% 0.01% 0.00% 0.03% 0.42% 0.20% 0.76% 0.01% 0.01% 0.30% 0.06% 0.00% 0.00% 2.89% 0.00% 0.04% 0.00% 0.08% 0.02% 0.04% 0.01% 0.01% 0.00% 0.00% 0.00% 0.03% 0.15%


Annual Report 2008

Afghanistan Investment Support Agency Research and Policy Department Total Investment By Major Province(2003-2008) Initial Capital in No. of No. of Major Province US$ Companies Employees Kabul 3,278,326,851 7,854 290,077 Hirat 154,012,964 846 21,194 Kandahar 142,486,428 818 22,402 Balkh 105,777,411 530 16,330 Nangarhar 90,581,612 821 23,056 Helmand 34,604,194 225 4,711 Khost 22,954,650 184 5,922 Kunduz 20,245,144 146 3,025 Total 3,848,989,254 11,424 386,717 Source: RPD, AISA, Kabul Date: January 2009 Afghanistan Investment Support Agency Research and Policy Department Investment By Country, End December 2008
Country Initial Capital in US$ No. of Companies No. of Employees


%age Share of Investment 82% 4% 4% 3% 2% 1% 1% 1% 97%

%age Share of Initial Capital

Afghan-America Afghan-Australia Afghan-Austria Afghan-Azerbaijan Afghan-Bulgaria Afghan-Canada Afghan-China Afghan-Croatia Afghan-Czech Republic Afghan-Dubai Afghan-Egypt Afghan-England Afghan-France Afghan-Germany Afghan-India Afghan-Indonesia Afghan-Iran Afghan-Italy Afghan-Japan Afghan-Jordon Afghan-Kazakhstan Afghan-Korea Afghan-Kyrgyzstan

77,182,541 1,575,000 2,550,000 5,500,000 1,200,000 4,108,000 14,779,400 1,030,001 80,000 320,000 80,000 4,133,001 2,509,940 20,575,901 3,014,600 20,000 66,557,739 100,000 140,000 150,000 11,100,000 650,000 500,000

96 4 2 8 1 6 11 4 1 3 2 17 16 40 24 1 82 1 2 1 9 5 1

5,602 103 42 226 300 183 713 46 20 26 38 3,397 517 1,718 448 5 2,180 203 650 18 358 525 10

2.01% 0.04% 0.07% 0.14% 0.03% 0.11% 0.39% 0.03% 0.00% 0.01% 0.00% 0.11% 0.07% 0.54% 0.08% 0.00% 1.74% 0.00% 0.00% 0.00% 0.29% 0.02% 0.01%


Annual Report 2008

America-Sweden America-Ukraine America-Uruguay America-Uzbekistan Australia Austria Austria-Finland Azerbaijan Bangladesh Belgium Belize Brazil Canada Canada-Australia Canada-France Canada-Albania Canada-Lebanon Canada-Pakistan China China-India China-Turkey Croatia(Hrvatska) Denmark Dubai England England-Australia England-Canada England-China England-Dubai England-German England-India England-Iran England-Jordan England-Lebanon England-Pakistan England-South Africa England-Syria France France-Lebanon
500,000 1,050,000 1,000,001 200,000 432,000 21,700 5,000 5,665,800 10,400,000 1,100,000 2,500,000 9,500 111,880,000 10,000 50,008,000 5,000 1,000,000 28,000 57,846,100 15,000 1,000,000 1,000,000 4,951,600 122,053,000 17,259,070 1,130,000 25,000 20,000 150,000 80,000 1,260,000 8,000 250,000 50,000 40,000 8,000 40,000 525,000 20,000,000 1 1 1 1 10 1 1 3 5 1 1 1 9 1 2 1 1 2 39 1 1 1 7 12 47 4 2 2 1 1 2 1 2 1 2 1 2 15 1 115 26 14 27 1,237 11 78 317 3,826 70 2 15 210 6 269 5 250 23 2,124 8 200 10 182 740 8,019 1,083 7 8 55 5 114 4 4,008 8 35 229 41 795 410

0.01% 0.03% 0.03% 0.01% 0.01% 0.00% 0.00% 0.15% 0.27% 0.03% 0.07% 0.00% 2.92% 0.00% 1.30% 0.00% 0.03% 0.00% 1.51% 0.00% 0.03% 0.03% 0.13% 3.18% 0.45% 0.03% 0.00% 0.00% 0.00% 0.00% 0.03% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.01% 0.52%


Annual Report 2008

France-Philippine Germany Germany-Belgium Germany-Denmark India India-Pakistan Iran Iraq Israel Italy Italy-Iran Japan Jordon Kazakhstan Kenya Korea Kuwait-India Kyrgyzstan Lebanon-Macedonia Lebanon Lithuania-Uzbekistan Malaysia Nepal Netherlands New Zealand Pakistan Philippine Poland Russia Russia-India Russia-Tajikistan Russia-Uzbekistan Saudi Arab Sierra Leone Singapore South Africa South Africa-New Zealand Sweden Sweden-Netherland

8,000 8,285,496 500,000 10,000 22,592,200 15,000 61,667,202 1,000,000 1,700,000 2,157,538 100,000 7,764,600 50,000 1,662,000 20,000,000 2,297,501 1,000,000 1,100,000 100,000 1,650,000 500,000 500,000 128,000 13,475,000 19,500 52,365,300 150,000 100,000 7,409,000 10,000 200,000 7,000,000 80,000 480,000 10,000 4,288,000 50,000 1,028,000 39,000 1 43 1 1 60 1 110 1 2 8 1 6 1 5 1 9 1 1 1 15 1 1 5 11 3 96 4 1 12 1 1 2 1 3 1 6 1 3 1 3 746 25 4 2,917 40 3,086 56 18 284 4 176 22 38 50 70 24 330 110 211 6 7 43 255 17 2,652 53 70 883 7 70 74 15 134 16 169 40 17 11 0.00% 0.22% 0.01% 0.00% 0.59% 0.00% 1.61% 0.03% 0.04% 0.06% 0.00% 0.20% 0.00% 0.04% 0.52% 0.06% 0.03% 0.03% 0.00% 0.04% 0.01% 0.01% 0.00% 0.35% 0.00% 1.37% 0.00% 0.00% 0.19% 0.00% 0.01% 0.18% 0.00% 0.01% 0.00% 0.11% 0.00% 0.03% 0.00%


Annual Report 2008

Switzerland Tajikistan-Kazakhstan Turkey-Kazakhstan Turkmenistan Ukrain Uzbekistan Total
Source: RPD, AISA, Kabul Date:January 2009 Afghanistan Investment Support Agency (AISA) Research and Policy Department Investment of Major Countries, end December 2008
Country Initial Capital in US$ Companies Employees

5,156,000 1,000,000 100,000 10,050 5,070,000 989,600 3,835,607,060 4 1 1 1 5 3 12,428 2,382 10 15 60 72 35 399,913 0.13% 0.03% 0.00% 0.00% 0.13% 0.03% 100%

%age share of Initial Capital

America 110,916,697 135 30,743 UAE 122,053,000 12 740 England 17,259,070 47 8,019 India 22,592,200 60 2,917 Iran 61,667,202 110 3,086 Pakistan 52,365,300 96 2,652 Turkey 131,834,344 133 12,520 China 57,846,100 39 2,124 Canada 111,880,000 9 210 Kenya 20,000,000 1 50 Total 708,413,913 642 63,061 Source: RPD, AISA, Kabul Date:Janaury 2009 Afghanistan Investment Support Agency (AISA) Research and Policy Department Investment of ECO States in Afghanistan, End December 2008)
S.No Country Initial Capital in US$ No. of Companies

2.89% 3.2% 0.4% 0.6% 1.6% 1.4% 3.4% 1.5% 2.92% 0.5% 18%

No. of Employees

1 2 3 4 5 6 7 8 9 Source: RPD, AISA, Kabul Date: January 2009

Azerbaijan Iran Kazakhstan Kyrgyz Republic Pakistan Tajikistan Turkmenistan Uzbekistan Turkey Total

5,665,800 61,667,202 1,662,000 1,100,000 52,365,300 5,503,000 10,050 989,600 131,834,344 260,797,296

3 110 5 1 96 12 1 3 133 364

317 3,086 38 330 2,652 414 60 35 12,520 19,452


Annual Report 2008


Afghanistan Investment Support Agency Research and Policy Department ECO Joint Ventures in $US In Afghanistan(End December 2008) Initial Capital No. of No. of S.No Joint Venture in US$ Companies Employees 1 Afghan-Azerbaijan 5,500,000 8 226 2 Afghan-Iran 66,557,739 82 2,180 3 Afghan-Kazakhstan 11,100,000 9 358 4 Afghan-Kyrgyzstan 500,000 1 10 5 Afghan-Pakistan 10,518,900 43 748 6 Afghan-Tajikistan 7,850,000 12 222 7 Afghan-Turkey 29,199,801 43 2,283 Afghan8 Turkmenistan 200,000 1 10 9 Afghan-Uzbekistan 2,367,600 7 231 Tajikistan10 Kazakhstan 1,000,000 1 10 11 Turkey-Kazakhstan 100,000 1 15 Total 134,894,040 208 6,293 Source: RPD, AISA, Kabul Date: January 2009
Afghanistan Investment Support Agency Research and Policy Department Total Investment in $US (ECO States + Joint Venture) in Afghanistan(End December 2009)

Initial Capital Total Investment of Eco States Total Investment of Eco Joint Venture Total Investment (Individual + Joint Venture) Source: RPD, AISA, Kabul Date: January 2009 260,797,296 134,691,336 395,488,632

No. of Companies 364 208 572

No. of Employees 19,452 6,293 25,745

Afghanistan Investment Support Agency Research and Policy Department

Investment of Canada and Joint Venture(Registered in AISA until end of December 2008)

Country Canada Afghan-Canada America-Canada Canada-Australia Canada-France Canada-Albania Canada-Lebanon Canada-Pakistan England-Canada Total Source: RPD, AISA, Kabul Date: January 2009

Initial Capital 111,880,000 4,108,000 1,400,000 10,000 50,008,000 5,000 1,000,000 28,000 25,000 168,464,000

No. of Companies 9 6 3 1 2 1 1 2 2 27

No. of Employees 210 183 277 6 269 5 250 23 7 1,230