Investment Climate Reform Program

OVERVIEW

 

The Doing Business project measures the efficiency and strength of laws, regulations and institutions that are relevant to domestic small- and medium-sized companies throughout their life cycle. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages countries to promote more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, policymakers, journalists, private-sector researchers, business executives and others interested in the business climate of each country. The first Doing Business report, published in 2003, covered five indicator sets and 133 economies, while it now covers 11 indicator sets and 189 economies. 
 
As a result of the USAID’s funding, the World Bank Group and the Government of Afghanistan have been developing a program to promote a better investment climate in order to stimulate inclusive growth and enhance the country’s competitiveness. Policy recommendations have been targeting reform in three regulatory areas, namely 1) starting a business; 2) issuing construction permits; and, 3) getting credit. 

CURRENT ACTIVITIES

  • Simplifying procedures pertaining to business registration to reduce the cost and time required for starting a business;
  • Reengineering the process on issuing construction permits for commercial and residential buildings in the municipality of Kabul to stimulate investment, improve building safety, and reduce illegal construction;
  • Establishing a credit bureau to store information about companies and individuals in order to increase access to credit; and
  • Assessment and mapping of the process on issuing construction permits for commercial and residential buildings in Mazar and Jalal-Abad municipalities to stimulate investment, improve building safety, and reduce illegal construction.

ACCOMPLISHMENTS

  • Facilitated agreement between the Ministry of Commerce and Industry and the Afghan Investment Support Agency to lower fees for business registration.
  • Implemented a unified collateral registry to enable entrepreneurs and small business owners to leverage their movable assets and strengthen their access to credit.
  • As result of these reforms the rank of Afghanistan improved 6 steps WB/IFC’s 2014 DB report (170 164) of 189 economies
  • Construction permit at Kabul Municipality streamlined by introducing new forms for residential and commercial buildings.
  • The procedures of issuing construction permit in Mazar and Jalal-Abad municipality were mapped, final report and recommendations were submitted. 

Last updated: December 30, 2013

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