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.

The foundation stone of the Lajward Residential Complex was laid on Tuesday in northern Balkh province by Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs.

Speaking at the inauguration ceremony, Baradar said the Islamic Emirate is placing special focus on achieving economic self-reliance, attracting domestic and foreign investment, and implementing major infrastructure projects across the country.

He described the Lajward Residential Complex as a significant example of ongoing development efforts and noted that large-scale projects in sectors including industry, transportation, electricity generation, and urban development are currently underway.

Baradar stated that practical work on master plans and urban expansion projects is continuing alongside national initiatives such as the Qosh Tepa project. He added that the Islamic Emirate considers it a responsibility to provide opportunities and facilities for both local and foreign investors in the construction sector.

According to his office, the Deputy Prime Minister emphasized that cooperation between the government and the private sector is essential for economic stability and the reconstruction of Afghanistan, while assuring continued support for investors.

He also encouraged business leaders to expand investments in the housing and construction sector.

During his visit to Balkh, Baradar said he would inspect commercial ports in the province to ensure the provision of 24-hour services and improve the efficiency of export and import operations.

The Deputy Prime Minister noted that senior officials from various institutions are accompanying him to closely assess economic activities, development projects, and challenges related to port operations in the province.

According to the Deputy Prime Minister for Economic Affairs Office, the Lajward Residential Complex will be built with a private sector investment of $150 million.

The project includes the construction of approximately 1,448 modern apartments and is expected to create around 7,000 jobs.

The complex will be developed on nearly 21 jeribs of land and will include schools, healthcare and commercial facilities, green areas, a mosque, sports and recreational centers, and other public amenities.

Police in northern Balkh province say three individuals have been arrested on charges of smuggling 540 kilograms of hashish from Afghanistan to Uzbekistan through the Hairatan border crossing.

In a statement, the Balkh police command said the suspects had concealed the drugs inside an excavation machine and transported it through the Hairatan port in an attempt to smuggle them across the border.

Mohammad Isa Wasiq, spokesperson for the Balkh police command, said the drugs had been hidden in a highly sophisticated manner to avoid detection.

According to officials, the suspects have confessed to the crime and will be handed over to the relevant judicial authorities following the completion of preliminary investigations.

Hairatan port is considered one of Afghanistan’s most important commercial gateways and serves as a major transit route connecting the country with Central Asia.

Authorities say efforts to combat drug trafficking through key border crossings remain ongoing.