Afghanistan has witnessed some increase in the inflow of foreign investment in the country in the past two and half years as some foreign investors from various countries have recently shown interest in investing in various areas particularly exploring and extracting the country’s mines.
Afghanistan, a landlocked country located in the central Asia with a strategic geographical position connects important trade routes of southern and eastern Asia to Europe and the Middle East. With the Islamic Emirate takeover in mid-August 2021, Afghanistan has witnessed remarkable progress in various areas, particularly in trade and business with neighboring countries in the region. In the past two and half years, efforts have been made to create new opportunities for business and investment in the country. Besides, a favorable investment environment has been created as the overall security situation has improved across the country. The Islamic Emirate has introduced new economic policies and incentives for domestic and foreign investors to invest in Afghan istan. Afghanistan has witnessed some increase in the inflow of foreign investment in the country in the past two and half years as some foreign investors from various countries have recently shown interest in investing in various areas particularly exploring and extracting the country’s mines. The Islamic Emirate particularly the country’s ministry of commerce and industry has made efforts to attract more foreign investment to the country. As overall security situation has considerably improvement, there are good potentials for the investment in the country. In recent months, businessmen from various countries have expressed their interest to invest in different sectors in Afghanistan. A number of Azerbaijani businessmen and investors the other day in a meeting with acting minister of commerce and industry have shown interest to invest in different sectors in Afghanistan. These businesspeople asked the Afghan ministry of commerce and industry to coordinate with them in establishing a joint chamber of commerce and investment between the two countries. Nooruddin Azizi, the acting minister of commerce and industry has assured that stability has been ensured in the country and a favorable environment for investment has been created. Both foreign and domestic investment is important for economic development. Investments result in a number of effects that can have a positive impact on the overall situation of an economy. For example, capacity effects refer to the increase in production potential that occurs as a result of an investment. With increasing investment in the country, the people will experience a high and evenly distributed level of prosperity that has a number of positive effects on society. For example, with increasing investment in the country, the economy of people develops in general. It helps reduce poverty and crime in the country. Increasing investment also helps develop level of education of the people and reduce rates of diseases among the people. The additional social benefit generated by an investment is what increases people’s quality of life and constitutes economic growth. There are hopes that both foreign and domestic investments will further increase as the security situation has improvement and the Islamic Emirate is working to create more opportunities and facilitation so that foreign investors can easily invest in the country. Mashal Noori