KABUL, AFGHANISTAN – The European Union (EU) has announced €10 million in funding to support women entrepreneurs and women-led businesses in Afghanistan, as restrictions imposed by the Taliban continue to limit economic opportunities for women.
In a statement on Thursday, the EU delegation in Afghanistan said that the funding will be used to launch the second phase of the Women’s Economic Empowerment through Local Enterprise Development (WE-LEAD) programme, implemented by the UN Development Programme (UNDP).
The EU said the initiative will provide culturally appropriate and Sharia-compliant financial mechanisms, along with business development support, mentorship, and market linkages. The project will primarily target underserved provinces in central Afghanistan, where women’s labor force participation remains low and access to financial services is limited.
“This €10 million project supports inclusive and durable alternative livelihoods with a focus on building small enterprises for women and men by linking them to markets,” said Veronika Boskovic Pohar, EU Chargé d’Affaires to Afghanistan. “By investing in women’s businesses, communities, and local markets, we are helping Afghan households build resilience and self-sufficiency.”
The Taliban’s return to power has rolled back two decades of international efforts to expand economic opportunities for women. Donors invested hundreds of millions of dollars in women’s empowerment programs during that period. Since taking control, the regime has barred women from working in most sectors and aid organizations, closed beauty salons that employed tens of thousands of women, and restricted women’s movement and employment in many local and international institutions.
The EU remains one of Afghanistan’s largest donors since 2021, prioritizing women’s economic empowerment, small business support, alternative livelihoods, and efforts to reduce reliance on poppy cultivation. The bloc recently committed €126 million in humanitarian aid for Afghanistan, Pakistan, and Iran in 2026, as part of a broader €1.9 billion global humanitarian package.
