EU Pumps €10M Into Afghan Women's Business Empowerment Program

The European Union has committed €10 million to launch the second phase of its women's economic empowerment program in Afghanistan. The initiative, implemented with the UNDP, will provide integrated financial and business support to women entrepreneurs. It focuses on removing barriers like limited access to finance, markets, and skills, particularly in selected underserved provinces. The program will use community-based platforms to ensure safe and sustainable engagement for women in the local economy.

Key Points: EU Funds €10M Program for Afghan Women Entrepreneurs

  • €10 million EU funding
  • Supports women-led micro & small businesses
  • Aims to remove barriers to finance and markets
  • Implemented with UNDP in underserved provinces
2 min read

EU allocates EUR10M to support Afghan women's empowerment

The EU allocates €10 million for Afghan women's economic empowerment, focusing on finance, skills, and market access in underserved provinces.

"Donor institutions supporting women's capacity-building, especially for those newly entering business, are extremely helpful. - Fariba Noori"

Kabul, January 24

The European Union announced that it will allocate EUR10 million to launch the second phase of its Women's Economic Empowerment through Local Enterprise Development program in Afghanistan, according to a report by Tolo News.

According to Tolo News, citing the EU, the program will be implemented in cooperation with the United Nations Development Programme (UNDP) and local Afghan institutions, aiming to improve livelihoods, create income opportunities, and support the economic role of women.

The statement issued by the European External Action Service (EEAS) on January 22 said that the new phase builds on the results and lessons of WE-LEAD Phase I and UNDP's Area Based Approach for Development Emergency Initiatives ABADEI.

"It will support women at different stages of economic activity from informal savings groups to micro, small and medium sized enterprises through integrated financial and non-financial services tailored to Afghanistan's social and economic context", it said.

It noted that with a budget of EUR10,000,000, WE-LEAD II focuses on removing barriers that limit women's economic participation-- particularly restricted access to finance, markets, skills, and reliable income opportunities.

"The project promotes culturally appropriate and Sharia-compliant financial mechanisms combined with business development support, mentorship, and market linkages", the statement said.

It also mentioned that the initiative would be implemented in selected underserved provinces in the Central and Central Highlands regions, where women's labor force participation is low, and access to financial services remains limited.

"By working through community-based platforms and local market systems, the project aims to ensure safe, inclusive, and sustainable engagement for women entrepreneurs", the statement observed.

Fariba Noori, head of the Women's Chamber of Commerce and Industry, said, "Donor institutions supporting women's capacity-building, especially for those newly entering business, are extremely helpful. A woman who is the sole breadwinner of her family could benefit from at least 30-40% in cash or equipment support to contribute to her household", according to Tolo News.

The EU also announced that it has signed an agreement with UNDP to implement this phase of the program in several underprivileged provinces of Afghanistan, as per Tolo News.

- ANI

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Reader Comments

R
Rahul R
While the intention is good, I have serious doubts about the implementation. How will they ensure the funds actually reach the women entrepreneurs and aren't misdirected by local institutions or the authorities? Transparency is key, and in the current Afghan situation, that's a huge challenge.
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Aman W
It's heartening to see such initiatives. As an Indian, I can relate to how micro-finance and women's self-help groups can transform communities. The mention of "savings groups to MSMEs" is the right approach. Building from the ground up is the only sustainable way. 🙏
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Sarah B
€10 million is a significant amount. I hope the program includes strong monitoring and evaluation. The real test will be in the "selected underserved provinces." If they can create success stories there, it could be a model for other regions. Wishing the team and the women involved all the best.
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Karthik V
The focus on financial literacy and market linkages is spot on. Giving cash or equipment is one thing, but teaching them how to build a sustainable business is what creates long-term change. Fariba Noori's point about sole breadwinners is so important. This could literally save families.
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Nidhi U
A respectful criticism: I hope this isn't just another donor project that looks good on paper. The statement says it builds on lessons from Phase I. They should publicly share what those lessons were—what worked, what didn't. That accountability would build more trust in such international efforts.

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