Assistance in Building Afghanistan by Developing Enterprises (ABADE)

OVERVIEW

Assistance in Building Afghanistan by Developing Enterprises (ABADE) is a four-year, $105 million project that commenced in October 2012.

USAID/Afghanistan works with the private sector to strengthen the productivity of enterprises and create jobs. ABADE’s objectives are to increase domestic and foreign investment, stimulate employment, and improve sales of Afghan products. ABADE forms public-private alliances with Small and Medium-sized Enterprises (SMEs) which helps to mitigate the risks of business expansion. The project is designed to complement other USAID programs that aim to improve the business-enabling environment, develop a skilled workforce, and facilitate access to finance.

CURRENT ACTIVITIES

  • SME and Innovation Public-Private Alliances:
  • 1A). SME Alliances: Capital is provided to existing, productive SMEs or consortia through a competitive application process. Afghan business partners must demonstrate an investment of at least twice the USAID contribution, a 1:2 investment ratio. ABADE’s investment in a medical-grade cotton production line for a manufacturer of hospital equipment is an example of an SME Alliance. 
  • 1B). Innovation Public-Private Alliances: USAID aims to stimulate innovation by providing capital for new business ideas through a competitive application process. Afghan business partners must demonstrate an investment equal to the USAID contribution, a 1:1 investment ratio. ABADE’s investment in the production of high-quality compost using thousands of imported worms—the first use of this approach in Afghanistan—is an example of an Innovative Public Private Alliance. 
  • Technical Assistance and Business Advisory Services: ABADE provides technical assistance and business advice to SMEs and sub-award recipients and other key stakeholders—including women entrepreneurs—in areas such as accounting, marketing, access to finance, achieving quality standards, and use of specialized production machinery. 
  • Business Enabling Environment: ABADE works with the Ministry of Commerce and Industry to improve the business climate in Afghanistan by addressing regulatory and procedural barriers that affect private enterprise competitiveness. The program facilitates dialog between businesses and government that results in five-year, industry-specific Action Plans for sectors including marble, gemstones and jewelry production, construction materials, carpets, and women SMEs.

EXPECTED RESULTS

  • Generate $180 million in private sector investment.
  • Form 365 SME alliances with existing businesses that wish to expand.
  • Form 41 innovation public-private alliances with new or existing businesses that have innovative products or services that they would like to bring to Afghanistan.
  • Create 46,000 full-time equivalent jobs.
  • Increase sales by public-private alliance SMEs by an average of 20 percent.
  • Reduce the number of days needed to obtain construction permits by an average of 20 percent.

Last updated: December 31, 2014

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