Investor interest growing in Afghanistan’s power-generating sector

Domestic and foreign investors are showing an increased interest in investing in the electricity-producing sector in Afghanistan, the Ministry of Energy and Water says.

According to the spokesperson of the Ministry of Energy and Water, Matiullah Abid, keen interest has been shown by investors from Turkey, Iran, Tajikistan, Uzbekistan and China.

Afghanistan currently produces only 20% of its energy needs, while 80% of its electricity is imported from Uzbekistan, Tajikistan, Turkmenistan, and Iran at a cost of about $300 million a year.

Since regaining control of the country in August 2021, the Islamic Emirate has made it a priority to encourage domestic production of power.

Omar has met with potential investors on numerous occasions and has encouraged them to invest in the sector.

Da Afghanistan Breshna Sherkat (DABS) this week announced it had signed a contract for the purchase of electricity from Uzbekistan for the year 2025.

This agreement was signed in Tashkent by DABS CEO Abdul Bari Omari.

Late last month, Tajikistan’s national electric power company, Barqi Tojik, and DABS signed a similar agreement for 2025.

According to Barqi Tojik’s press secretary, Kurbon Ahmadzoda, the agreement is expected to be extended annually until 2028.