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Afghanistan-Japan Trade Hits $97M Despite No Direct Japanese Investment

Afghanistan and Japan recorded $97 million in bilateral trade last year, despite Japan having no direct investments in the country. The vast majority of the trade volume consists of Afghan imports of vehicles and machinery from Japan, while Afghan exports are minimal and include dried fruits and medicinal plants. Economic analysts urge Afghanistan to leverage this trade relationship to attract Japanese investment in technology and infrastructure. They emphasize that structured engagement with Japan could be crucial for Afghanistan's development in key sectors.

Key Points: Afghanistan-Japan Trade Reaches $97 Million

  • $97M trade volume
  • $95M imports from Japan
  • $2M exports to Japan
  • Trade conducted via third countries
2 min read

Despite direct investment, Afghanistan-Japan trade hits $97 million

Afghanistan and Japan's bilateral trade hit $97 million last year, driven by machinery and dried fruit exports, despite a lack of direct investment.

"We do not see direct Japanese investment in Afghanistan, but we do have trade. - Kenichi Masamoto"

Kabul, February 12

Afghanistan and Japan's trade reached $97 million last year, despite the absence of direct Japanese investment in the country, reported Tolo News.

Kenichi Masamoto, Japan's ambassador to Afghanistan, divulged that although Japan has not made investments in Afghanistan, trade exists between Kabul and Tokyo and a large portion of Japan's trade with Afghanistan is indirect and conducted through third countries.

"At present, we do not see direct Japanese investment in Afghanistan, but we do have trade. We export machinery and machinery parts. Direct trade is limited; however, some Japanese vehicles and their spare parts enter Afghanistan through third countries. Therefore, trade exists, and there is also larger indirect trade taking place," said Japan's ambassador.

Japan exports machinery and parts to Afghanistan, mostly through third countries. Afghan exports to Japan include medicinal plants, dried fruits, and nuts, while imports include vehicles, machinery, and spare parts.

The Ministry of Industry and Commerce of the Islamic Emirate of Afghanistan reported that trade volume between Afghanistan and Japan reached $97 million last year, of which $2 million was exports and $95 million was imports, reported Tolo News.

Akhundzada Abdul Salam Jawad, spokesperson for the Ministry of Industry and Commerce, said: "The main export items to Japan include medicinal plants, raisins, dried figs, pistachio kernels, fresh fruits, almond kernels, and dried apricots. The main imports from Japan include motorcycles, high-speed vehicles, tyres and tubes, vehicle spare parts, and bicycles."

Economic analysts suggest Afghanistan should leverage opportunities to attract Japanese investment, particularly in technology, infrastructure, and energy. Japan can assist in technology transfer, production standards, and industrial capacity building.

Ahmad Ferdous Behgozin, an economic analyst, said, "Japan can assist Afghanistan in technology transfer, improving production standards, and strengthening industrial capacity. On the other hand, trade relations with Japan send a message to the world that Afghanistan seeks constructive and balanced engagement."

Afghanistan trades with over 80 countries globally, with Japan being a key partner.

Another economic analyst, Shakir Yaqoubi, said: "Considering the future pathways for our country, establishing a structured and well-managed relationship with Japan could be highly important, particularly in infrastructure, energy sectors, education, and technology, where Japan can play a very effective role."

- ANI

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Reader Comments

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Priya S
Interesting to see trade happening through third countries. It shows business finds a way even in complex geopolitical situations. Japan's machinery and parts are top quality, so it's good they are available, even indirectly. Hope for more direct engagement in the future 🤞
R
Rohit P
The analysts are right. Afghanistan has huge potential in solar and hydro energy. If Japan invests in tech and infrastructure there, it could be a win-win. Stability is the first requirement for any major investment though. Let's see how things progress.
S
Sarah B
As someone who has worked in development, this is a positive signal. Maintaining any trade relationship is a step towards normalization and economic recovery. The focus on medicinal plants is smart—there's a growing global market for natural remedies.
V
Vikram M
Japanese vehicles and bikes are reliable. No surprise they are in demand. But the real story is the $2 million exports. Afghan pistachios and apricots are amazing! If they can improve packaging and branding, they can capture a premium market in Japan. Quality standards matter.
K
Karthik V
With all respect to the report, I feel the article is a bit optimistic. Trade through third countries means extra costs and less profit for Afghan businesses. The lack of direct investment speaks volumes about the perceived risk. The first step should be creating a trustworthy environment for business.
M

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