Afghanistan Economy and Business

• GDP: US$11.7 billion (2008).
• Main exports: Fruit, nuts, carpets, natural gas and cotton.
• Main imports: Capital goods, food, textiles and petroleum products.
• Main trade partners: Pakistan, the EU, India, Russia, Kenya and Korea (Rep).

Decades of continuous war have completely wrecked the Afghan economy. Reconstruction of the agricultural sector, which accounted for about half of GDP, has been severely hampered by abandonment of farms and the huge number of minefields. This has led to falling food stocks and Afghanistan has had to rely on foreign aid. The lack of funding has led many farmers to rely on growing opium and selling it illegally to survive - a practice the current government is trying to end.

There have been some positive advancements in recent years: in January 2003, Afghanistan signed a trilateral trade agreement with Iran and India that designated the Iranian port of Chabahar as a major port for Afghanistan. In May 2008, Afghanistan agreed a US$2.8 billion contract with China for a project on copper extraction, which it is estimated will provide 20,000 jobs.  

Price bargaining is expected and oral agreements are honoured. Formal wear is expected and meetings should be pre-arranged.

Business is a personal thing in Afghanistan, and you should try to forge a strong relationship with your business partner. Bear in mind that prestige and honour are hugely important in Afghanistan, so never intentionally - or unintentionally - damage these.

Office hours: Generally Sat-Wed 0800-1200 and 1300-1630, Thurs 0800-1330

Afghan Chamber of Commerce and Industry
Chaman-e-Huzuri, Kabul,
Tel: (2) 025 854.
Website: www.acci.org.af

Afghanistan Investment Support Agency
Opposite the Ministry of Foreign Affairs, Kabul
Tel: (2) 103 404.
Website: www.aisa.org.af