THE WORLD BANKEastern Region Economic Growth and Investment Conference – Jalalabd March 28.

Bank (IBRD + IDA)MIGAIFC

All are active in Afghanistan and all have been engaged in projects and assistance designed to help the private sector.

THE WORLD BANK GROUP

Lending to Government Possible to lend to private sector under

certain conditions Key assistance to date includes

Enterprise Surveys 2005 & 2008 Development of industrial park in Jalalabad Support to Central Bank to increase access to

finance Support to MISFA to assist operational stability Assistance to telecoms Assistance to Ministry of Mines Investment in roads Investment in customs and boarder controls

THE BANK

1. Weak policy enforcement2. Poor provision of electricity3. Crime, theft and disorder4. Corruption5. Access to land6. Access to finance

However variation in severity of constraints faced from city to city…

ICA 2008: TOP COUNTRY CONSTRAINTS

Access to land (39%)

Policy enforcement

(33%)

Electricity (75%)

Access to finance (32%)

Corruption (23%)

SINGLE BIGGEST OBSTACLE PER CITY

i. Poor provision of electricityii. Crime, Theft, & Disorderiii. Policy enforcementiv. Corruptionv. Access to landvi. Access to finance

ICA 2008:CONSTRAINTS FOR JALALABAD

Objectives: Enhance the provision of the land

and infrastructural services for enterprise development,

Enhance the capacity of government agencies to analyze PSD issues, develop and implement PSD related strategies , policies and programs,

Enhance the capacity of government agencies to promote Afghanistan as an investment destination and provide investment facilities services,

PSD PROJECT

i. Development of Industrial park in Hissar i Shahi of Nangarhar province,

a) Size of the park: 126 hectaresb) Number of plots: 163c) Sectors: light engineering, food processing,

lather garments, and carpet washing and finishing.

ii. Institutional development for PSDa) Industrial Parks Development Department

(IPDD),b) Policy and Research Unit (PRU), AISAc) Private Sector Development Department (PSDD),

MoCI

COMPONENTS

MICROFINANCE PROGRAM IN AFGHANISTAN

Managing by the World Bank, Financial resources : ARTF and the World

Bank, Coverage: 26 provinces (130 districts), Total active clients: 443000, Total active borrowers: 321000, Direct employment: 4500, No of loans in eastern region: 85233, Amount of loans in eastern region:

$ 31.3 million, Sectors: Agriculture, Trade and Services,

Manufacturing and Handicraft, Housing and

Others,

National PSD

Program

Local Economic Development

Office

Firm-level Matching

Grants Fund Urban Development

2004 IFC investment portfolio = US$8 million in two companies

2010 IFC investment portfolio = US$90 million in 6 companies

Additionally, IFC’s Advisory Services are helping increase access to finance, contributing to SME development and improving the business enabling environment through various technical assistance projects.

INTERNATIONAL FINANCE CORPORATION

I N S U R I N G I N V E S T M E N T S E N S U R I N G O P P O R T U N I T I E S

War and civil disturbance cover protects against losses arising from: damage/disappearance of tangible assets due to war or

civil disturbance (including revolution, sabotage, and terrorism)

prolonged business interruption Expropriation cover protects against losses arising

from: nationalization and confiscation creeping expropriation, partial expropriation (limited

coverage) Breach of contract cover protects against

government (including sub-sovereign) actions resulting in: breach or repudiation of an agreement with the investor

and non-enforcement of an arbitration award

AIGF

Thanks