The European Union has announced a €10 million investment to launch Phase II of the Women’s Economic Empowerment through Local Enterprise Development (WE-LEAD) programme in Afghanistan. Implemented by the United Nations Development Programme (UNDP), the initiative aims to support Afghan women’s livelihoods and economic agency, building on the successes and lessons of WE-LEAD Phase I and UNDP’s Area Based Approach for Development Emergency Initiatives (ABADEI).
WE-LEAD Phase II targets women across different stages of economic activity, from informal savings groups to micro, small, and medium-sized enterprises. The programme addresses barriers to women’s economic participation, including limited access to finance, markets, skills, and stable income opportunities. It incorporates culturally appropriate and Sharia-compliant financial mechanisms alongside business development support, mentorship, and market linkages.
The project will be implemented in selected underserved provinces in the Central and Central Highlands regions, where women’s participation in the labor force remains low and access to financial services is restricted. By engaging with community-based platforms and local market systems, the initiative seeks to create safe, inclusive, and sustainable opportunities for women entrepreneurs.
Key interventions include transforming informal savings groups into Sharia-compliant Rotating Savings and Credit Associations (ROSCAs), expanding access to subsidized Islamic microfinance, supporting women-led micro and small enterprises with blended finance and tailored business services, strengthening women’s integration into local value chains, and launching a Social Enterprise Idea Challenge to encourage community-driven solutions. These actions are expected to increase women’s incomes, enhance household resilience, and strengthen women’s decision-making power in economic matters.
Veronika Boskovic Pohar, EU Chargée d’Affaires to Afghanistan, highlighted that the project supports inclusive livelihoods, links entrepreneurs to local and regional markets, and helps Afghan households achieve resilience and self-sufficiency. UNDP Resident Representative Stephen Rodriques emphasized that the programme will assist thousands of women with financial literacy, Sharia-compliant finance, and business support, contributing to broader economic recovery, job creation, and stronger financial systems across Afghanistan.
WE-LEAD Phase II is implemented under UNDP’s ABADEI platform in partnership with multiple organizations, promoting community resilience, inclusive local economic recovery, and sustainable development across Afghanistan.
