The Kabul times, Afghanistan Trustable News Agency.
Articles

Increasing investment creates economic growth, prosperity

These days a number of Afghan traders and investors have
promised to invest in their home country.

With the Islamic Emirate (IEA) takeover in mid-August 2021, the overall security situation has improved unprecedentedly across Afghanistan. This has attracted national and international companies to invest in the country. In the past two years, dozens of Afghan investors have invested millions of dollars in the country. These days a number of Afghan traders and investors have promised to invest in their home country. One of these Afghans who are interested in investing billions in dollar is Mirwais Azizi, who is a leading Afghan business tycoon and has announced investing $10 billion in energy and transportation sectors over the next five years. In his most recent visit to Afghanistan, he announced that he will soon invest billions of dollars in the country. On his X handle, Mirwais Azizi wrote: “Today, during my short trip to Afghanistan, I pledged that I will always remain next to my compatriots during their hard times. “In this regard, I … plan to invest 10 billion U.S. dollars in Afghanistan over the next five years, focusing on the energy and transportation sectors,” he said. In the energy sector, the aim was to produce 5,000 to 6,000 megawatts of electricity, the entrepreneur said. In the transport sector, the focus will be on building railway networks to help promote trade and economic activity. “I anticipate that close to one hundred thousand new jobs will be created and millions of other Afghans will benefit indirectly from these projects,” Aziz added. Technical teams from the Azizi Group will soon visit Kabul to further explore the areas and exchange views with the relevant authorities, he concluded. This is the first time a single Afghan investor would like to invest up to $10 billion in Afghanistan. This has shown overall better security situation in the country has attracted both Afghan and international investors in the country. Basically, an investment is the use of capital by an entrepreneur for his business purposes. Investments result in some 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. We speak also of income effects when increasing investments creates jobs, which in turn results in higher total national income, which also increases total consumption within the national economy. There is no law of nature that an economy must grow steadily. However, there are reasons why it is favorable for an economy to increase its output. Indeed, as a country’s economic performance increases, the wealth of the individual usually increases as well. This in turn favors maintaining or even increasing the level of prosperity. 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. It also helps develop the level of education of the people and reduces 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. S. Raqib

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The Kabul times, Afghanistan Trustable News Agency.