KABUL: The United Nations Development Programme (UNDP) and UN Women have launched a new financing initiative to support women entrepreneurs in Afghanistan, with an initial investment of about $1.7 million expected to benefit 1,500 women over the next year.
The Afghanistan Women’s Fund for Resilient Businesses will provide Sharia-compliant financial services along with business development assistance, including financial and digital literacy training, mentoring, business-plan development and support in accessing markets, according to the UN agencies.
UNDP and UN Women said they also aim to mobilize an additional $10 million to expand the initiative. The additional funding could support another 10,000 women entrepreneurs and indirectly benefit around 70,000 people.
The agencies said Afghan women face significant barriers to accessing finance. Fewer than 7 percent of women in Afghanistan have a bank account or use mobile-money services, leaving many women-owned businesses dependent on personal savings, family loans or the sale of personal assets.
Despite these challenges, more than 10,000 women now hold business licenses in Afghanistan, according to UNDP and UN Women. The agencies said the figure is 10 times higher than five years ago, while the Afghanistan Chamber of Commerce and Industry estimates that another 120,000 women operate businesses without formal licenses.
UN officials said improved access to finance, skills and business networks could help women expand their businesses and strengthen household livelihoods.
The initiative comes amid continuing restrictions on women’s education, employment and participation in public life under Taliban rule, which have limited formal economic opportunities for many Afghan women.