FAO, World Bank launch matching grants to support Afghan agribusinesses and rural jobs

Five Afghan agribusinesses have been selected as the first recipients of co-investment matching grants under a joint initiative by the Food and Agriculture Organization and the World Bank Group aimed at revitalizing Afghanistan’s agricultural economy through private sector-led growth, job creation and stronger agricultural value chains.

The grants, announced on Wednesday, will support enterprises involved in seed production, saffron, dairy, soybean processing and food manufacturing across Herat, Kapisa, Kunduz, Logar and Takhar provinces.

The selected businesses will receive financial support alongside their own co-investment contributions to expand operations, improve processing capacity, strengthen market links for farmers and create employment opportunities in rural communities. Three of the five supported enterprises are women-led.

Planned investments include a soybean oil refining line in Kapisa, solar-powered dairy operations in Takhar and saffron processing equipment in Kunduz.

Officials said the projects are expected to generate both direct and indirect jobs in production, processing, logistics and marketing.

In addition to funding, the enterprises will receive technical support through a Business Development Services provider to improve business planning, investment management, workforce development and operational growth.

The initiative is being implemented under the Emergency Food Security Project (EFSP), funded by the World Bank and managed by the FAO. The matching grant scheme is designed to strengthen the role of Afghan small and medium-sized agribusinesses in driving rural economic growth, creating jobs and improving agricultural value chains.

The first five businesses are being supported under the program’s Window 1 category, which focuses on women-led and early-stage small agribusinesses. Additional funding windows are expected to support larger and export-oriented businesses with greater potential for value addition and employment generation.

“Across Afghanistan, farmers are still too often cut off from markets. What we’re doing here is supporting the businesses that can help change that,” said Richard Trenchard.

“These enterprises are already investing in their own growth. Our role, together with the World Bank, is to help them scale up, reach more farmers, create jobs in rural communities and build stronger connections between production and markets,” he added.

Agriculture remains the backbone of Afghanistan’s economy, supporting the livelihoods of around 80 percent of the population. More than half of Afghan women participating in the labor force are employed in the sector.

Officials said continued investment in agribusiness and market systems is critical as humanitarian funding declines while food insecurity and malnutrition remain widespread. They said strengthening the private sector could help create jobs, support farming communities and improve long-term food security across the country.