Female entrepreneurs in AfghanistanIt is no secret that women’s rights in Afghanistan have been suffering due to decades of war and Taliban rule in the country. Afghan women have been denied employment, education, healthcare and basic freedoms for years and were punished violently by the Taliban for attempting to find work or go to school. Years after Taliban rule, women are picking up the pieces of a broken society that drove them and many other Afghans into severe poverty. Organizations such as the Women’s Economic Empowerment Rural Development Project (WEERDP) and the Afghanistan Reconstruction Trust Fund (ARTF), both funded and backed by the World Bank, set up savings and loan associations in different communities to allow Afghan women to start their own business. Female entrepreneurs in Afghanistan have the potential to help the economy and poverty within the country.

Women’s Empowerment Projects of the World Bank

International Aid to Afghanistan is essential for empowering its women and bringing communities out of poverty. The World Bank has a variety of programs dedicated to poverty eradication. It implemented the Afghanistan Rural Enterprise Development Project to support Village Savings and Loan Associations (VSLA). VLSAs operate as a community bank that gives out micro-loans to women to create employment opportunities to sustain economic growth. Examples of businesses that have been started are hair salons, tailor shops and bakeries.

While the Afghanistan Rural Enterprise Development Program closed down in 2018, it was replaced by the WEERDP and continues to be backed by the World Bank and the International Development Association (IDA) to ensure steady funding.

VSLA’s are funded by the World Bank and the IDA to ensure sustainable financial institutions are available in Afghanistan, with the hope that they will partner with larger commercial banks in the future.

Benefits of Female Entrepreneurs in Afghanistan

There are roughly 275,684 Afghan women beneficiaries of the WEERDP.  Many of them have had access to financial services for the first time with the program. Many others have taken loans, learned how to repay them and have begun saving for the future. These are valuable life skills for women who were not able to enter the workforce or gain an education in the past.

With the increase of women-run businesses in Afghanistan’s rural communities, VSLA’s can begin to partner with larger banks to begin serving bigger loans to women after seeing the success of the businesses that started with micro-loans. The support of financial institutions is important to give women the confidence to become entrepreneurs, especially in a country where the percentage of women in the workforce has been statistically low. Skills like leadership, management and problem-solving are derived from starting a business and they can be spread throughout communities to strengthen the role of women in the economy.

Skills can even be passed down through generations. Building a structure with programs like the WEERDP is vital for long-term economic growth and success because it can open doors for creativity and innovation for an economy that would benefit.

The Future of Female Entrepreneurs in Afghanistan

Increasing the number of women entrepreneurs with savvy financial skills can benefit the communities of Afghanistan in many ways. Successful women can begin to venture out into local politics and healthcare fields to build on their skills while sharing their talents with the community. Women have important input on what types of businesses are needed for their community and can reduce poverty in specialized ways.

Afghan women make up roughly half of the nation’s population, so their representation is needed to drive economic and societal progress. Having women be visible in the business sector can allow for gender equality to improve in Afghanistan over time, improving the development of the nation as a whole.

– Julia Ditmar
Photo: Flickr