The European Union has signed a EUR 5 million Administration Agreement with the International Finance Corporation (IFC), a member of the World Bank Group, to implement the Afghanistan Private Sector Stabilisation Programme. This initiative represents the ongoing EU–WBG partnership in Afghanistan, aimed at stabilizing the economy and promoting inclusive, private sector-led recovery by creating livelihoods across the country.
The programme will support investment in small and medium-sized enterprises (SMEs), foster entrepreneurship, and enhance access to financial services, with particular attention to women, youth, and returnees. It will collaborate closely with the private sector to improve the overall business environment and complement other EU interventions in rural development and microfinance, while being reinforced by future World Bank initiatives.
Over its 42-month duration, the programme will pursue five key objectives: strengthening private sector coordination and advocacy to improve the business environment, building the capacity of SMEs and start-ups with a focus on women, returnees, and internally displaced persons, enhancing financial inclusion, stimulating private capital mobilization and job creation across key sectors, and catalyzing private sector engagement to expand women’s economic participation and employment opportunities.
H.E. Veronika Boskovic Pohar, EU Chargée d’Affaires to Afghanistan, emphasized that the initiative forms part of the EU’s comprehensive support for the Afghan population, linking immediate humanitarian efforts with long-term economic development. She highlighted the programme’s role in fostering entrepreneurship and job creation, particularly for women, youth, and returnees.
Khawaja Aftab Ahmed, IFC Regional Director for the Middle East, Pakistan, and Afghanistan, stressed that the collaboration with the EU demonstrates a shared commitment to supporting Afghan entrepreneurs. He noted that strengthening businesses is a practical means to stabilize livelihoods and help Afghans rebuild their communities with dignity.
