The European Union (EU) has announced a €10 million ($10 million) investment to roll out Phase II of the Women’s Economic Empowerment through Local Enterprise Development (WE-LEAD) program, implemented by the United Nations Development Programme (UNDP).

The new phase aims to strengthen livelihoods and expand economic opportunities for Afghan women in selected underserved provinces.

Building on the achievements of WE-LEAD Phase I and UNDP’s Area-Based Approach for Development Emergency Initiatives (ABADEI), the programme will support women across the economic spectrum — from informal savings groups to micro, small, and medium-sized enterprises. It will provide a package of integrated financial and non-financial services designed to fit Afghanistan’s social and economic realities.

WE-LEAD Phase II focuses on addressing key barriers to women’s economic participation, including limited access to finance, markets, skills, and sustainable income opportunities. The initiative promotes culturally appropriate and Sharia-compliant financial mechanisms, alongside business development services, mentorship, and improved market access.

Key components of the programme include:

• Transforming informal savings groups into Sharia-compliant Rotating Savings and Credit Associations (ROSCAs)
• Expanding access to subsidized Islamic microfinance for women entrepreneurs
• Supporting women-led micro and small enterprises through blended finance and tailored business services
• Integrating women into local value chains using a market systems approach
• Launching a Social Enterprise Idea Challenge to encourage community-driven solutions

Veronika Boskovic Pohar, the EU Chargée d’Affaires to Afghanistan, said the initiative reflects the EU’s commitment to community resilience. “By investing in women-led businesses, communities, and local markets, we are helping Afghan households build resilience and self-sufficiency,” she noted.

UNDP Resident Representative in Afghanistan Stephen Rodriques said the programme would have a broad economic impact. “WE-LEAD Phase II will support thousands of women entrepreneurs with financial literacy, access to Sharia-compliant finance, and business services, contributing to economic recovery and job creation across the country,” he said.

Through the expanded WE-LEAD programme, the EU and UNDP aim to advance women’s economic empowerment, strengthen household resilience, and promote more inclusive and sustainable local development in Afghanistan.

Afghanistan’s national power utility, Da Afghanistan Breshna Sherkat (DABS), says electricity supply has been disrupted in several provinces after a major power transmission line importing electricity from Uzbekistan went out of service.

In a statement, DABS said the 220-kilovolt transmission line along the Pul-e-Khumri–Kabul route sustained technical damage due to heavy rainfall, snowfall, and strong winds, forcing it offline.

The outage has resulted in widespread power shortages and intermittent electricity cuts across Parwan, Kapisa, Panjshir, Kabul, Nangarhar, Laghman, Maidan Wardak, Ghazni, Logar, Paktia, Khost, and parts of Baghlan province.

DABS said severe snowfall in the Salang area has so far prevented technical teams from accessing the site and determining the exact location of the fault.

The company added that repair crews will be deployed as soon as weather conditions improve, allowing engineers to locate and repair the damaged section of the line and restore electricity supply.

The European Commission has committed €126 million ($137 million) to support humanitarian operations in Pakistan, Iran, and Afghanistan in 2026, part of an initial €1.9 billion aid package designed to address global crises amid funding shortfalls from other major donors.

The allocation comes as an estimated 239 million people worldwide require humanitarian assistance, the Commission said in a statement on Wednesday. In addition, over €415 million has been reserved to respond to sudden-onset emergencies and to maintain strategic supply chains.

EC Commissioner for Equality, Preparedness, and Crisis Management Hadja Lahbib announced the commitment at the World Economic Forum in Davos, emphasizing the need for private sector engagement and innovative solutions to complement public funding. “The humanitarian system is under unprecedented strain, and public funding alone will not meet the scale of the crisis,” she said.

“Europe is taking action, committing an initial €1.9 billion for 2026. As the largest humanitarian donor, we are taking our political responsibility and leading the global response,” Lahbib added. She will also co-host an event at the WEF on “New Alliances in Aid and Development” to explore partnerships that enhance global humanitarian efforts.

The European Commission noted that the EU and its member states remain the world’s leading humanitarian aid donors.

Rising Displacement

Meanwhile, the UN Refugee Agency (UNHCR) reported in its 2025 Impact Report that a combination of new emergencies and protracted crises forced millions from their homes last year. By mid-2025, approximately 117.3 million people were forcibly displaced, a slight decrease from the previous year. However, projections indicate that the global displaced population—including returnees and stateless persons—could surpass 136 million by the end of 2026.

UNHCR warned that severe funding cuts have affected all aspects of its operations, including emergency responses, forcing the agency to scale down both activities and staff by one-third.

The agency stressed that without increased and flexible funding, its ability to respond rapidly to new crises will be severely limited, just as global humanitarian needs continue to grow.