KABUL, AFGHANISTAN – The Food and Agriculture Organization of the United Nations said in a statement published yesterday, Wednesday, May 20, that five Afghan agribusinesses have been selected as the first recipients of co-investment matching grants under an initiative funded by the World Bank Group to help revitalize Afghanistan’s agricultural economy through private sector-led growth, job creation, and stronger agricultural value chains.
The selected enterprises, operating in seed production, saffron, dairy, soybean processing, and food manufacturing across Herat Province, Kapisa Province, Kunduz Province, Logar Province, and Takhar Province, will receive grant financing alongside their own co-investment contributions.
The support will enable them to expand operations, improve processing capacity, create jobs, and strengthen connections between farmers and markets.
The investments include a soybean oil refining line in Kapisa, solar-powered dairy operations in Takhar, and saffron processing equipment in Kunduz. FAO said the initiative is expected to generate both direct and indirect employment opportunities across production, processing, logistics, and marketing sectors. Notably, three of the five supported enterprises are women-led.
In addition to financial assistance, the businesses will receive tailored technical support through Business Development Services providers to strengthen investment management, workforce development, business planning, and operational growth.
The initiative is being implemented under the Emergency Food Security Project, designed to strengthen the role of small and medium-sized Afghan agribusinesses in driving rural economic growth and creating market opportunities for farmers, particularly women and youth.
Richard Trenchard, FAO Representative in Afghanistan, said farmers across the country continue to face limited access to markets, adding that the programme is intended to help local businesses scale up, reach more farmers, create rural jobs, and build stronger agricultural market systems.
According to FAO, agriculture remains the backbone of Afghanistan’s economy, supporting the livelihoods of nearly 80 percent of the population. The organization noted that more than half of Afghan women participating in the labor force are engaged in the agricultural sector.
Since 2022, the Asian Development Bank has provided about $265 million in grant assistance through FAO to strengthen agricultural production and address acute food insecurity nationwide, the statement said.
FAO also warned that as humanitarian funding declines while food insecurity and malnutrition remain widespread, sustained investment in private sector development and market systems is essential to transforming Afghanistan’s agrifood system, supporting farming communities, stimulating local economies, and building a more food-secure future.
