USAID grant helps company to double its production of candy in Afghanistan
2 NOVEMBER 2011 | BALKH, AFGHANISTAN
Serving sweet candies with tea in social gatherings or in other occasions is a common practice in Afghanistan. These colorful delights are usually imported from other countries despite the potential to produce them locally. However, some firms, like the Shadmehr Candy Production Company in Mazar-i Sharif, have started producing candies locally.
Shadmehr initially started as a candy-importing firm and in 2008, began producing candy locally. It produced five metric tons of candy per day and supplied it to local markets in Mazar-i Sharif and other northern provinces of Afghanistan. Considering the high demand for its products, Shadmehr needed to double its production. In order to do so, it needed support.
USAID entered into a public-private partnership with the firm in order to increase Shadmehr’s production capacity. USAID provided a $130,000 grant to the firm to procure additional machinery and recruit additional employees. As a result, Shadhmer doubled its production capacity to 10 metric tons per day and now employs 20 more people. To increase demand for the product, USAID also assisted Shadmehr with implementing a marketing campaign.
"USAID support enabled us to increase our production capacity and supply our candies to many new local markets, such as those in Kunduz Province. We expect to capture almost 50 percent of the candy market in the region," said Sayed Aminullah, director of the Shadmehr Candy Production Company.
Support to Shadhmer is an example of USAID’s efforts to boost domestic production. Such support enables the Afghan private-sector to capture local markets with their products instead of importing from other countries. This helps to increase domestic employment opportunities, raise domestic revenues, and encourage an overall economic growth of the Afghan economy.
Last updated: January 06, 2014