Assistance in Building Afghanistan by Developing Enterprises (ABADE) is a four-year project which commenced in October 2012. ABADE primarily works with the private sector to strengthen the productivity of enterprises focused on sustained growth and job creation. ABADE’s objectives are to increase domestic and foreign investment, stimulate employment and improve sales of Afghan products. Furthermore, ABADE is designed to complement other USAID programs that are focused on improving the business enabling environment, increasing the workforce, and facilitating access to finance. ABADE’s alliances with Small and Medium Enterprises (SMEs) will accelerate productivity and job creation by mitigating risk, and leveraging contributions from private companies via alliances.
Component 1: SME and Public-Private Innovation Alliances:
1A). SME Alliances: ABADE makes awards to existing, productive SMEs, consortia, or joint ventures, through a competitive application process designed to mitigate business expansion risks, encourage private investment, and expand markets. Alliance partners should have a substantial financial stake in the venture, by matching ABADE funding on at least a 1:2 basis.
1B). Public-Private Innovation Alliances: ABADE also establishes public-private alliances (PPAs) to stimulate innovation-focused initiatives. Both for-profit and non-profit entities, foreign and domestic, are encouraged to apply. Partners should match ABADE funding on at least a 1:1 basis.
Component 2: Technical Assistance and Business Advisory Services:
ABADE provides technical assistance (TA) for sub-award recipients and program stakeholders to improve their operations and management, and to solve technical issues related to market access, production, access to finance, and achievement of quality standards.
Component 3: Business Enabling Environment:
ABADE works to improve the business climate by addressing specific regulatory and procedural barriers that affect the competitiveness of PPA partners. This may include assessments and analytical studies driven by the sub-award applicants, as well as support for relevant ministries by drafting policy memoranda and regulatory guidelines for specific industries.
- At least 20% of the SME Alliances (Component 1A) and up to 50% of the Innovation PPAs (Component 1B) for applicants that directly address the needs of women, youth, pro-poor growth, or other cross-cutting issues.
- Generate $180 million in private sector investment.
- Form 365 public-private alliances.
- Form 41 Innovation public-private alliances.
- Create 46,000 full-time equivalent jobs.
- A 20% average increase in sales by public-private alliance SMEs.
- A 20% average reduction in the number of days to obtain construction permits.
Last updated: October 01, 2013