THE EUROPEAN UNION LAUNCHES WITH IFC A 5-MILLION-EURO PROGRAMME TO SUPPORT THE AFGHAN PRIVATE SECTOR

Kabul, Afghanistan - December 10, 2025 - The European Union has signed a new EUR 5 million Administration Agreement with the International Finance Corporation (IFC), a member of the World Bank Group (WBG) promoting the development of the private sector worldwide, for the implementation of the Afghanistan Private Sector Stabilisation Programme. The programme is the latest illustration of the EU - WBG partnership in Afghanistan, aiming at stabilising the economy and creating livelihoods through private sector-led inclusive economic recovery in the country.

The Afghanistan Private Sector Stabilisation Programme will facilitate investment in SMEs, support entrepreneurs, and improve access to financial services. It will focus on the economic participation of women, youth, and returnees and work in close collaboration with the private sector to improve the enabling environment for job creation and business. The programme is designed to act in synergy with other interventions of the European Union in particular in favour of rural development and micro-finance and will be enhanced by future World Bank initiatives.

Starting next month for a duration of 42 months, the programme will focus on five objectives: (1) Strengthening private sector coordination and advocacy mechanisms to improve the business environment, (2) Building capacity of SMEs and start-ups, with a particular focus on opportunities for women, returnees, and Internally Displaced Persons (IDPs), (3) Strengthening financial inclusion, (4) Stimulating private capital mobilization and job creation across key sectors and (5) Catalyzing private sector engagement to expand women's economic participation and employment.

H.E. Veronika Boskovic Pohar, EU Chargée d'Affaires to Afghanistan said, "this initiative is part of the comprehensive support of the European Union to the Afghan population, from immediate humanitarian response to a more long-term approach strengthening the Afghan private sector. This programme is important as it supports job creation and entrepreneurship in strategic value chains, in particular for the Afghan women, youth, and returnees."

Khawaja Aftab Ahmed, Regional Director Middle East, Pakistan & Afghanistan at IFC, noted: "This agreement between IFC and the EU reaffirms our commitment to Afghanistan's entrepreneurs. By joining our forces, we will aim to help the private sector stabilize, grow, and create jobs-especially for women, youth, and returnees. While no single effort can solve every challenge, strengthening businesses is a practical way to protect livelihoods and support Afghans in rebuilding with dignity."