Annual Report FY2015: Assistance in Building Afghanistan by Developing Enterprises (ABADE) Program

ABADE's objectives are to increase domestic and foreign investment, stimulate employment, and improve sales of Afghan products. The project coordinates with other USAID programs to improve the business enabling environment, develop a skilled workforce, and facilitate access to finance. ABADE's public-private alliances with small and medium-sized enterprises (SMEs) help reduce the risks involved in business expansion. SME alliances provide capital to existing SMEs or business alliances through a competitive application process. Afghan business partners must invest at least twice USAID's contribution in various manufacturing sectors. ABADE's investment in a medical-grade cotton production line for a manufacturer of hospital equipment is an example of an SME alliance. Innovation public-private alliances (PPAs) aim to stimulate innovation by providing capital for new business ideas through a competitive application process. Afghan business partners must invest an amount at least equal to the USAID contribution. 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 innovation PPA. ABADE provides technical assistance and business advice to SMEs, sub-award recipients, and other key stakeholders in accounting, marketing, access to finance, achieving quality standards, and how to use specialized production machinery. Special focus is placed on women entrepreneurs and ABADE's PPA partners. The program works with the Ministry of Commerce and Industries (MoCI) to improve Afghanistan's business climate by addressing regulatory and procedural barriers that affect a private enterprise's ability to compete. ABADE formed a total of 256 public-private alliances as of the end of FY2015. The program also provided technical assistance and business advisory services to SMEs and sub-award recipients. ABADE worked with the Ministry of Commerce and Industries to improve Afghanistan's business climate by addressing regulatory and procedural barriers. The program's innovation public-private alliances (PPAs) aim to stimulate innovation by providing capital for new business ideas. ABADE's investment in the production of high-quality compost using thousands of imported worms is an example of an innovation PPA. The program's technical assistance and business advisory services focus on women entrepreneurs and ABADE's PPA partners. ABADE's business enabling environment component works with the Ministry of Commerce and Industries to improve Afghanistan's business climate. The program addresses regulatory and procedural barriers that affect a private enterprise's ability to compete. ABADE has begun assisting stakeholders with the implementation of priority initiatives identified in action plans. The program's accomplishments in FY2015 include the formation of 256 public-private alliances, provision of technical assistance and business advisory services to SMEs and sub-award recipients, and work with the Ministry of Commerce and Industries to improve Afghanistan's business climate. ABADE's innovation public-private alliances aim to stimulate innovation by providing capital for new business ideas. The program's technical assistance and business advisory services focus on women entrepreneurs and ABADE's PPA partners. ABADE's business enabling environment component addresses regulatory and procedural barriers that affect a private enterprise's ability to compete. The program works with businesses and government to create five-year, industry-specific action plans for sectors such as marble, gemstones and jewelry production, construction materials, carpets, and women-owned small and medium enterprises. ABADE has begun assisting stakeholders with the implementation of priority initiatives identified in action plans. The program's success stories include the Enayatullah (Asefi Carpentry Workshop), which has benefited from new power tools and equipment that allow craftsmen to focus on value-enhancing artistic touches on decorated wooden furniture. ABADE's investment in a medical-grade cotton production line for a manufacturer of hospital equipment is another example of the program's success. The production of high-quality compost using thousands of imported worms is also a notable achievement of the program's innovation public-private alliances.