The European Union (EU) has announced a major funding initiative worth nearly €196 million to strengthen Afghanistan’s private sector by supporting small and medium-sized enterprises (SMEs), creating jobs, and expanding economic opportunities across the country.
EU Chargé d’Affaires in Kabul, Veronika Boskovic Pohar said the EU is implementing a range of projects designed to generate employment for skilled workers, women, young people, and returnees while helping to strengthen Afghanistan’s SME sector. She emphasised that alongside international assistance, Afghan authorities also have a key role to play in creating an environment conducive to economic growth.
According to Pohar, the EU is currently implementing €156 million worth of projects focused on livelihoods, durable solutions, job creation, and women’s economic empowerment. She also announced that an additional €40 million programme dedicated to supporting Afghan returnees will be launched in the near future.
The EU official said the bloc is gradually shifting its engagement in Afghanistan from emergency humanitarian assistance to long-term development initiatives, with particular emphasis on supporting internally displaced persons and returnees through sustainable economic opportunities.
The announcement coincided with World Day of Small and Medium Enterprises, during which the UN highlighted the vital contribution of SMEs to the global economy.