EU launches €10 million initiative to support Afghan women entrepreneurs

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.