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Commodity prices have increased in Afghanistan with currency depreciation: WFP

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Last Updated on: February 3, 2025

Commodity prices have increased in Afghanistan as the country’s currency depreciated against the US dollar during the past week, the UN World Food Program (WFP) said on Thursday.

WFP said in a report that during the past week, the Afghani declined by 7.6 percent against USD to AFN  79.6/USD, which directly impacted market prices.

It said that Da Afghanistan Bank (DAB) conducted USD auctions to stabilize the currency, and the exchange rate returned to around 76 Afghanis per USD of Thursday.

Majority of staple food commodities, such as wheat flour, cooking oil, and rice, are imported into the country. Any changes in the exchange rate directly impact prices in local markets.

Prices collected during the fourth week of January show a slight increase in the price of major food commodities due to the depreciation of the Afghani over the past week, WFP said.

The national average prices of non-food commodities also experienced a slight increase compared to last week due to changes in exchange rate. Compared to last week, the price of DAP, Urea and Improved Seed increased by 2.8%, 3.6% and 0.9%, respectively.

The price of diesel increased by 2.8 percent to AFN 63.9 per litre. Charcoal and gas prices rose by 4.0% and 2.8% respectively.

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Afghanistan invites Turkish investors to expand joint investments

Participants stressed the importance of increasing private sector cooperation and creating new opportunities to boost trade and investment between Afghanistan and Türkiye.

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A high-level Afghan business delegation, led by the Chairman of the Balkh Chamber of Commerce and Investment, Mohammad Ibrahim Ghazanfar, participated in the Afghanistan–Türkiye Joint Business Council meeting in Istanbul, calling for expanded joint investment and stronger economic cooperation between the two countries.

According to a statement from the Balkh Chamber of Commerce and Investment, Ghazanfar invited Turkish investors and industrialists to explore investment opportunities across various sectors in Afghanistan, emphasizing the country’s potential for mutually beneficial partnerships.

The meeting brought together business leaders, investors, and private sector representatives from both Afghanistan and Türkiye to discuss ways to strengthen bilateral trade and economic ties.

During the event, several cooperation agreements were signed between Afghan and Turkish economic institutions. The agreements are aimed at expanding commercial relations, promoting joint investment projects, and enhancing economic cooperation between the two countries.

The meeting was chaired by Süleyman Güllü, Chairman of the Türkiye–Afghanistan Joint Business Council, and was attended by Mohammad Akbar Azimi, the Islamic Emirate of Afghanistan’s Consul General in Istanbul, along with a number of businessmen and investors from both countries.

Participants stressed the importance of increasing private sector cooperation and creating new opportunities to boost trade and investment between Afghanistan and Türkiye.

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Afghanistan chamber, India’s ASSOCHAM sign MoU to enhance trade and investment cooperation

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The Afghanistan Chamber of Commerce and Investment (ACCI) and the Associated Chambers of Commerce and Industry of India (ASSOCHAM) have signed a memorandum of understanding (MoU) aimed at strengthening bilateral trade, investment, and business cooperation between India and Afghanistan.

The agreement was signed in New Delhi by Saurabh Sanyal, Secretary General of ASSOCHAM, and Sayed Mohammad Karim Hashemi, Chairman of ACCI, during a meeting between business leaders from the two countries, ASSOCHAM said in a statement.

The Afghan delegation, led by Hashemi, held discussions with Nirmal Kumar Minda, President of ASSOCHAM, and other officials on ways to expand bilateral trade, investment flows, and private-sector cooperation.

According to ASSOCHAM, the MoU seeks to strengthen institutional collaboration, promote business-to-business linkages, and facilitate greater trade and investment opportunities between India and Afghanistan.

The organization said it remains committed to fostering stronger economic ties and creating new avenues of cooperation between the business communities of both countries.

 

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Kazakhstan signs $18.8 million zinc ore supply agreement with Afghan company

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Kazakhstan has signed a major zinc ore supply agreement with an Afghan company as the two countries continue to expand economic cooperation and trade ties.

According to Kazakhstan’s Ministry of Trade and Integration, the contract was signed between Kazakhstan’s ShalkiyaZinc and Afghanistan’s Afghan German Bakhtar Company during the opening of the Kazakhstan Trade House in Kabul.

The signing took place as part of an official business mission led by Kazakhstan’s Deputy Prime Minister and Minister of National Economy, Serik Zhumangarin.

Under the agreement, Afghan German Bakhtar Company will supply approximately 30,000 tons of zinc ore annually on DAP (Delivered at Place) terms. The ore will be used as raw material for the production facilities of Kazakhstan’s Kazzinc. The total value of the contract is estimated at $18.88 million.

The deal marks a significant step in diversifying trade relations between Kazakhstan and Afghanistan, moving beyond traditional agricultural exports into the mining and industrial sectors.

“Afghanistan today is a market of opportunities,” said Kanat Kudaibergen, Chairman of the Board of GWM Capital LTD. He noted that while Kazakhstan’s exports to Afghanistan have historically consisted mainly of flour, grain, sunflower oil, and other agricultural products, demand is increasingly growing for machinery, equipment, and service solutions in agriculture, construction, and mining.

Kudaibergen expressed confidence that the newly established Trade House in Kabul would serve as an important platform for developing new business projects and expanding Kazakhstan’s non-resource exports.

The agreement follows recent discussions between Kazakh officials and Afghanistan’s leadership, including Prime Minister Mohammad Hasan Akhund and Deputy Prime Minister Abdul Ghani Baradar, during which Kazakhstan expressed interest in sourcing zinc ore from Afghanistan.

Preparations for the deal began last year when specialists from Tau-Ken Samruk visited Afghanistan’s Bamyan province to assess the Pami-Kakrak zinc deposit. Samples collected during the visit were later analyzed by Kazzinc, which confirmed the feasibility of processing the ore at Kazakh facilities.

Economic relations between the two countries have been steadily strengthening. Kazakhstan’s Ministry of National Economy reported that bilateral trade reached $541.8 million in 2025. Both governments have set an ambitious target of increasing annual trade turnover to $3 billion in the coming years.

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