EU announces major funding to support Afghan small businesses

The European Union says it is implementing hundreds of millions of euros in projects to support small and medium-sized enterprises (SMEs) in Afghanistan and help expand economic opportunities across the country.

Speaking to Ariana News, EU Chargé d’Affaires in Kabul, Veronika Boskovic Pohar, said the programs are aimed at creating jobs for skilled workers, women, youth, and returnees, while also strengthening the private sector. She added that alongside international support, Afghan authorities also have a role in facilitating economic growth.

According to Pohar, the EU is currently implementing projects worth €156 million focused on livelihoods, durable solutions, job creation, and women’s economic empowerment. She said an additional €40 million program specifically designed to support returnees will be launched in the near future.

She noted that the EU is gradually shifting its focus from emergency humanitarian aid toward long-term sustainable solutions, particularly for internally displaced people and returnees in Afghanistan.

Meanwhile, the United Nations, marking World Day of Small and Medium Enterprises, said SMEs account for more than 90 percent of businesses worldwide and play a critical role in employment and economic growth.

UN spokesperson Stéphane Dujarric stressed that stronger investment, innovation, and sustainable industrial development are essential to help businesses withstand economic challenges and build resilient economies.

Afghan private sector representatives and economic analysts say greater support for SMEs could help the country address economic challenges faster, increase employment, and promote sustainable long-term development.