Germany and the European Union have announced 7 million eure in combined funding to support humanitarian assistance and economic recovery efforts in Afghanistan, amid continued warnings over severe funding shortages.
The UN Office for the Coordination of Humanitarian Affairs (OCHA) said Germany has contributed 2 million Euro to the Afghanistan Humanitarian Fund. In a post on X on Monday, (December 15) OCHA thanked Germany for the contribution, saying the funding would bring hope to people whose lives have been disrupted by sudden shocks and emergencies.
The donation comes as humanitarian organizations repeatedly warn of critical funding gaps for Afghanistan this year. The World Food Program (WFP) has said that due to reduced funding, it has been forced to cut the number of people receiving food assistance from 10 million to just 2 million.
At the same time, the European Union announced a 5 million Eure agreement with the International Finance Corporation (IFC), a member of the World Bank Group, to implement the Afghanistan Private Sector Stabilization program.
According to the EU Delegation in Kabul, the program will begin next month and run for 42 months, aiming to stabilize the economy and support livelihoods through a private-sector-led and inclusive economic recovery.
The initiative will focus on improving the business environment, strengthening coordination and advocacy mechanisms for the private sector, building capacity for small and medium-sized enterprises and startups, enhancing financial inclusion, mobilizing private investment, and creating jobs in key sectors, with a particular focus on women, youth, returnees, and internally displaced people.
Veronika Boskovic Poha, Charge d Affaires of the EU Delegation to Afghanistan, said the initiative is part of the EU’s comprehensive support for the Afghan people and is vital for promoting employment and entrepreneurship, particularly for women and young people.
Meanwhile, Khawaja Aftab Ahmad, IFC’s Regional Director for the Middle East, Pakistan and Afghanistan, said the agreement reaffirmed the organization’s commitment to Afghan entrepreneurs, adding that strengthening businesses is a practical way to support livelihoods and support Afghans in rebuilding their economy with dignity.
