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EU launches €10 million initiative to support Afghan women entrepreneurs

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

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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.

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US says UN aid to Afghanistan needs evaluation

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Despite what it called a humanitarian “disaster” in Afghanistan, the U.S. said on Monday international assistance to the country should be evaluated, given IEA “intransigence” and ​its exclusion of the female population from basic rights.

Speaking to a ‌U.N. Security Council meeting on Afghanistan, the U.S. ambassador to the United Nations, Mike Waltz, noted that the budget for the United Nations Assistance Mission in Afghanistan (UNAMA), the mandate of which is ​up for renewal next week, is the largest of any special U.N. ​mission in the world.

“In light of the Taliban’s (IEA) intransigence, we must ⁠carefully evaluate the utility of international assistance and engagement in Afghanistan,” Waltz said, ​even as he highlighted an ongoing “humanitarian disaster” there.

“This council must consider carefully the ​funds we collectively provide for this mission’s budget, when the mission’s female national staff are not even able to go into the office to work,” he added.

The Islamic Emirate has previously said that its policies on women are based on the Islamic law.

Afghanistan faces one ​of the world’s most pressing humanitarian crises.

According to the U.N. World Food Programme, ​more than 17 million Afghans – or one-third of the population – are facing acute food shortages, ‌including 4.7 ⁠million facing emergency levels of hunger.

The temporary head of UNAMA, Georgette Gagnon, told the meeting Afghanistan had “urgent” humanitarian needs and the humanitarian crisis there had worsened due to funding cuts. She said humanitarian agencies aimed to assist 17.5 million Afghans ​in 2026 through an ​appeal for $1.71 billion, ⁠but this was currently only 10% funded.

Gagnon said Afghanistan’s nearly two-week conflict with Pakistan had had “punishing human and economic costs” ​and the Iran war on its other border was causing ​prices of ⁠basic commodities to rise.

She said some positive developments showed the value of international engagement, including the IEA ban on opium poppy cultivation. She warned that if rights and ⁠humanitarian issues ​were not dealt with, Afghanistan could “once again become ​a driver of regional and global instability in the form of outmigration, terrorism, narcotics and more.”

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UN warns of possible surge in Afghan returnees from Iran

Deputy UNHCR spokesperson Faramarz Barzin said the organization is closely monitoring the situation while prioritizing the protection of vulnerable returnees.

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The United Nations has expressed concern over a potential increase in Afghan migrants returning from Iran, warning that many could face heightened vulnerability upon arrival in Afghanistan.

The United Nations High Commissioner for Refugees (UNHCR) said its primary concern remains the safety and protection of Afghan returnees, particularly as regional tensions continue to affect migrant communities.

According to the agency, there has not yet been a significant rise in the number of Afghans returning from Iran despite ongoing instability and conflict in the wider region. However, UNHCR said it is preparing for the possibility of a sudden influx.

The agency noted that contingency measures are already being put in place at key border crossings, including Islam Qala, to ensure that humanitarian assistance can be delivered quickly if return numbers increase.

UNHCR said it is currently providing a range of support services for Afghans returning from Iran, including cash assistance, protection services, temporary shelter, healthcare and registration.

Deputy UNHCR spokesperson Faramarz Barzin said the organization is closely monitoring the situation while prioritizing the protection of vulnerable returnees.

“Our primary concern continues to be the safety and protection of Afghan returnees, who are particularly vulnerable under the current circumstances,” Barzin said.

 “Although we have not yet observed a significant increase in returns from Iran, UNHCR is actively preparing for the possibility of a rise in arrivals.”

He added that precautionary measures are already underway at major border crossings, particularly at Islam Qala, to ensure rapid assistance if the number of returnees grows.

The warning comes as humanitarian organizations report continued forced or pressured returns of Afghan migrants from both Iran and Pakistan, a trend that could further strain Afghanistan’s already fragile humanitarian situation.

UNHCR said it is working closely with international partners to monitor developments and adapt its response to meet the needs of vulnerable groups, including women, children and people at heightened risk.

Many Afghan migrants return under pressure from host countries or due to fears linked to regional tensions. Once back in Afghanistan, many face significant challenges, including poverty, unemployment and a lack of adequate housing.

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Malaysian Red Crescent urges respect for humanitarian law in Middle East conflicts

MRCS National Chairman Tan Sri Tunku Puteri Intan Safinaz Sultan Abdul Halim Mu’adzam Shah stressed the importance of allowing humanitarian organizations to operate without obstruction.

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The Malaysian Red Crescent Society (MRCS) has called on all parties involved in conflicts across the Middle East and in rising tensions between Afghanistan and Pakistan to respect international humanitarian law and ensure the protection of civilians and aid workers.

In a statement issued in Kuala Lumpur, the organization warned that escalating military operations risk worsening the humanitarian situation for vulnerable communities already affected by violence and instability.

MRCS echoed concerns raised by the International Committee of the Red Cross (ICRC), which has cautioned that increased hostilities pose a serious threat to civilians caught in conflict zones.

The society reminded all parties of their obligations under international humanitarian law to safeguard non-combatants, medical workers, and essential infrastructure such as hospitals and health facilities.

Red Cross and Red Crescent teams continue to provide humanitarian assistance in affected areas wherever access is possible.

Their work includes delivering emergency medical care, supporting communities in crisis, and strengthening local preparedness for further humanitarian challenges.

The International Federation of Red Cross and Red Crescent Societies (IFRC) is also coordinating with national societies across the region to monitor urgent humanitarian needs and support relief operations.

MRCS National Chairman Tan Sri Tunku Puteri Intan Safinaz Sultan Abdul Halim Mu’adzam Shah stressed the importance of allowing humanitarian organizations to operate without obstruction.

“Our thoughts and prayers are with all those affected by this conflict,” she said in the statement.

She urged all parties to respect international humanitarian law, protect civilians, and allow humanitarian teams to deliver urgently needed assistance without interference.

MRCS also emphasized that civilians, humanitarian personnel, public infrastructure, and the Red Cross and Red Crescent emblem must be respected and protected at all times under international law.

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