afghanistan manufacturing sector analysis

43
Afghanistan Investment Support Agency Research & Development Department Afghanistan Manufacturing Sector Analysis December, 2015 Author; Ahmad Nawaz Research analyst AISA Contact details; Cell; 0093-788806374 Email; [email protected] / [email protected]

Upload: independent

Post on 01-Dec-2023

0 views

Category:

Documents


0 download

TRANSCRIPT

Afghanistan Investment Support Agency

Research & Development Department

Afghanistan Manufacturing Sector Analysis

December, 2015

Author;

Ahmad Nawaz Research analyst AISA

Contact details;

Cell; 0093-788806374

Email; [email protected] / [email protected]

1 | P a g e

Acknowledgement

This paper is completed with mercy of Allah almighty and with the continuous support and hard

work of my colleagues at AISA. I thankful to Mr. Mohammad Qurban Haqjo who is serving as

CEO of Afghanistan Investment support agency for his continuous support and guide line. I

would also like to thank to Mr. Ibrahim shams vice president for investment, for his keen interest

with the subject in providing me with confidence. I would also like to express my gratuities to

my colleagues in department especially Syed Saduddin, Nisar Ahmad Hassan.

It would have been difficult to complete this paper without continuous hard work of my dearest

colleagues, data collection assistants namely; Mr.Hanif Rostam, Mr. Hikmatullah Mehmmodi,

Mr. Naveed Gafori and Mr. Fazal Hadi,

At the end I would like to thank all regional offices colleagues for the collection of primary data

in provinces of Mazar, Kandahar, Nangarhar, and khost, Helmand, Faryab and Herat.

2 | P a g e

The views expressed in this paper are those of the author and do not necessarily

reflect the official position of AISA (Afghanistan Investment Support Agency).

3 | P a g e

List of abbreviation and currency exchange rate

S.no Abbreviation Description

1 CSO Central statistics organization

2 MOF Ministry of Finance

3 AISA Afghanistan investment support agency

4 IPDD Industrial parks development directorate

5 USSR Union of soviet socialist Russia

6 USA United states of America

7 GDP Gross domestic product

8 CAGR Compound Annual Growth Rate

9 DABS Da Afghanistan BrishnaShirkat

Currency;

1 US Dollar = 64 Afghani

4 | P a g e

Table of Contents Executive summary ………………………………………………………………………………………...6

Chapter 1 ..................................................................................................................................................... 8

Historical background .................................................................................................................................. 9

Introduction .................................................................................................................................................. 9

Afghanistan industrial parks.………………………………..……………………………………...……..10

Research methodology…………………………………...…………………………………………..……11

Chapter 2 Provincial manufacturing industries ................................................................................... 13

Kabul Manufacturing industry ................................................................................................................... 14

Nangarhar manufacturing industry ............................................................................................................. 14

Khost Manufacturing Industry………………………………………………………………...…………..15

Kandahar manufacturing industry………………………………………………………….….…………..15

Balkh manufacturing industry………………………………………………………………….….………16

Helmand manufacturing industry………………………………………………………………….………16

Herat manufacturing industry………………………………………………………………………..……17

Chapter 3 Afghanistan Manufacturing Industry Analysis……………………...………….…...…….18

Afghanistan Manufacturing products……………………………………………………….……………..19

Raw Material…………………………………………………………………………………...………….20

Energy used in Firms…………………………………………………………………………...…………21

Investment years…………………………………………………………………………….…………….21

Initial investment………………………………………………………………………………………….22

Current capital…………………………………………………………………………………………….22

Average Growth Rate %.............................................................................................................................23

Employment and wages………………………………………………………………….……………….23

Capacity building………………………………………………………………………..………………..24

Sales of produced goods………………………………………………………………………….………24

Expansion plan for business…………………………………………………………………….………..25

Comparison domestic goods verses imported goods…………………………………………….……….26

Marketing strategies…………………………………………………………………………….………..26

Competition barriers…………………………………………………………………………….………..26

5 | P a g e

Chapter 4 Investment opportunities and challenges………………………………………………...29

Investment opportunity in Manufacturing……………………………………………………………....30

Afghanistan private investment law………………………………………………………….……..…..30

Challenges to Afghanistan manufacturing sector……………………………………………..……..….31

Chapter 5 Recommendations……………………………………………...…...………………….….32

Recommendations on government……………………………………………………………..….……33

Recommendations on Afghanistan investment support agency………………………………….….…34

Recommendations on firms holders………………………………………………………………...….34

Conclusion……………………………………………………………………………………….......…34

References …………………………………………………………………………………...……..….36

Appendix…………………………………………………………………………………………........ 36

6 | P a g e

Executive summary

Afghanistan is a natural corridor for trade west to east and from east to west. Current

Afghanistan territory is composed of 652.000 km2. Afghanistan has 600km mountains of Hindo--

Kush from north to southwest1. Afghanistan is indulged in civil wars since 40 years, after 9/11

Afghanistan is invaded by US and its allies for the elimination of terrorism. After 2001 a

democratic system came into being in Afghanistan, Afghanistan become focus of international

community during this time a huge amount of international aid and investment came to

Afghanistan, before this during civil wars all existing infrastructures were destroyed by civil

wars. In 2003 Afghanistan economy started its new journey from roots, today manufacturing

sector shares 18.7% in GDP in 2013--142. It becomes not enough but it’s slow and steady

movement towards self-reliance. 5047 Total manufacturing firms are registered in Afghanistan

investment support agency with the initial capital of $1,122,173,355.00 out of total registered

firms population 5% are surveyed from the different provinces of Afghanistan. For better

understanding here we have divided Afghanistan into seven zones Center, North East,

Northwest, East, South East, West and South west. Afghanistan has 20 industrial parks in

different province, some of them are operational and some of them under construction.43% of

the manufacturing firms produce plastic, P.V.C and different plastic products, 11% firms

manufactures ice cream, bakery and snacks, 8% firms produce non—alcoholic beverages, 6%

produce washing soap, washing powder and washing liquids, 5% produce construction steel ,

small turbine and wheat cleaning machines, 4% produce oxygen, pharmaceuticals and acids, 4%

produce marble outdoor stones, 4% manufacture tissue papers and stationery, 3% firms produce

iodized salt, 2% produce chicken and poultry food, 4% produce vegetable oil, 3% manufacture

Aluminum utensils & pressure cookers, 2% manufacture rag and foams, 1% firms produce wheat

flour, and graph shows 0% firm produce leather shoes which is actually one firm and 0% firms

process soybean seeds that is also actually one firm. Regarding raw materials 60% firms’ imports

raw material from the regional and extra—regional countries and 40% firms use domestic raw

material. Most of the firms perform their operations with the help of electricity and some of them

use solar, generators, coal and also gas. The average growth rate of the firms is measured with

the help of compound growth rate formula which shows the average growth rate of the

manufacturing firms is 102.03%. In manufacturing firms total 6887 are direct employees where

975 are females, 5912 are male and 1509 are skilled labors. The wages of the workers vary from

5000 Afghani to the 50,000 Afghani the average salary of the workers is calculated $159.63%

firms do not use kind of capacity building program to enhance the capabilities of the firm’s

workers and 43% use capacity building programs for their employees. 96% firms sales their

produced goods insides Afghanistan or even in their relevant zones while 4% of the firms

exports their product. According to the 65% firm holders there is no difference between

1Spanish institute for strategic studies/ Analysis document of the IEEE12/2011geopolitical analysis of Afghanistan/ 2Afghanistan statistical yearbook 2013-14

7 | P a g e

domestically produced goods and imported goods, 17% firms holders believes only difference is

in quality of production, 12% respondents believes there is difference of price while 6%

respondent said there is only difference of brand.

Marketing is an important tool for business projection 56% of the Afghan manufacturing firm do

not use marketing for the promotion their respective products, 44% of the firms use marketing

tool for the promotion of their respective products.

Massive flow of illegal imports, corruption in government proceedings, less electric power, less

suitable industrial land, high tax on import of raw materials are the challenging barriers for

Afghanistan manufacturing sector. Regional dumping policy is an economical terrorism for

Afghanistan industries.

8 | P a g e

Chapter 1

Introduction

Source; primary data

9 | P a g e

Historical Back Round

Afghanistan is a natural corridor for trade west to east and vice versa. Alexander used this way

328 years before Christ. Afghanistan is a direct route between East Asia and central Asia.

Among the Asian countries Afghanistan is land luck country with having direct borders to the

Pakistan, china, Iran, Kyrgyzstan, Turkmenistan and Uzbekistan. Current Afghanistan territory is

composed of 652.000 km2. Afghanistan has 600km mountains of Hindo Kush from north to

southwest.3 The external borders of Afghanistan are not natural and government has weak

control on borders. Unnatural borders prone of illegal trade and trafficking, in east of

Afghanistan there is Pakistan. North of the Afghanistan is connected with the central Asian

states. West part of Afghanistan has direct border with the Iran. Wakhan locates in north east of

Afghanistan which is a corridor to china.

During the 19th century there was dispute among the British and Russian empire on Afghanistan,

to be a colony of the empires but both of them got failed in controlling Afghanistan physically at

that time both of empires agreed to keep Afghanistan as a natural state. In 20th century during the

cold war Afghanistan become the rivalry of the two another empires USSR and USA. In 1979

USSR invaded Afghanistan to support the communist regime, after the 10 years of war USSR

disintegrated into the number of state and Russian troops got out of Afghanistan. Russia leaved

Afghanistan in civil war. These civil wars and Russian invasion destroyed Afghanistan

infrastructure and all institutions. After 9/11 Afghanistan is invaded by USA to demolish

terrorism which is still not completed. Nowadays situation is more complex because there is

more involvement of regional and extra—regional countries, geopolitical and geostrategic role is

enhanced. During civil wars and conflict regional countries developed them self’s by the

international aids as compare to Afghanistan. Regional countries are comparatively stable and

having strong institutions, where Afghanistan is in very beginning stages of development.

Afghanistan is positioned among the nuclear powers or among the Asian leaders like Pakistan,

Iran, India and china. The group of neighboring countries has competitions among them in

Afghanistan not only in influencing Afghanistan but also as a market for their production. In

economical prospective Afghanistan is completely colonized by the regional countries besides

strategic interests Afghanistan economy is always under the pressure of the regional dumping

Introduction

After the decades of war, Afghanistan is moving towards self-reliance by developing its

industries. Since 2003 infusion of international aid and investment brought a positive change in

economy of Afghanistan. Due to insecurity and instability Afghanistan industrialization process

is slow. Afghanistan is passing through initial stages of industrialization according to the central

statistics organization (CSO) Afghanistan has 94.4 % imports while 5.6% exports4,Afghanistan

manufacturing industry contributes 18.7% in GDP in 2013—14. Due to the geopolitics regional

3Spanish institute for strategic studies/ Analysis document of the IEEE12/2011geopolitical analysis of Afghanistan/ 4Afghanistan statistics yearbook 2013-14

10 | P a g e

countries has an important market for their exports, so dumping is a normal tool which used by

the regional countries to keep control on Afghan market, besides this Afghanistan industry is

growing day by day. Table 1.1

In Afghanistan investment support agency total

5047 manufacturing firms are registered with the

total investment of USD 1,122,173,355.00.

Afghanistan manufacturing industry is divided

into 7 zones. Kabul is a congested city regarding

population, investment and other activities so

particularly Kabul has 2355firmsregistered with

investment of USD 677,269,943.00each zone is

composed number of provinces. Table 1.1

indicates name of zone, number of firms and total

investment in manufacturing sector. Following is

the composition of the zones

i. Center includes Kabul, Kapisa, Logar,

Panjshir, Parwan, Wardak

ii. North East includes Badakhshan, Baghlan, Kunduz, Takhar

iii. Northwest is composed of Balkh, Faryab, Jowzjan, Samangan, Sar-e Pol

iv. East Kunar, Laghman, Nangarhar, Nurestan

v. South East Ghazni, Khost, Paktia, Paktika

vi. West Badghis, Bamiyan, Farah, Ghor, Herat

vii. South west Daykundi, Helmand, Kandahar, Nimruz, Orazgan, Zabul5

Afghanistan Industrial Parks

Afghanistan has 34 provinces out of 34 provinces 14 provinces have industrial parks, some of

them are fully operational and some them are still under construction or not distributed among

the manufacturing firms. Those parks which are not yet distributed one of the major and common

problems of the parks is unavailability of electrical power, Following1.2 table have complete

information’s of existing industrial parks which indicates name of park, location of park, area of

park in hectors (converted from Girib) number of industrial plot, distribution status, and last cell

indicates the number of active firms. Table 1.2

S.

N

O

Name of park Province Area

(hectors) Industrial plots Distributed

plots

Active

Firms

1 Pol_e_ charkhi Kabul 270 1115 614 186

2 Juma Mohammad

Mohammadi

Kabul 20 53 52 31

3 Gosfandar Kabul 400 ----------- 0 0

5 World public library

No Zone Total

companies

Investments/$

1 Center 2406 691,449,522.00

2 North

east

141 15,781,460.00

3 North

west

501 120,600,823.00

4 East 699 75,332,478.00

5 South

east

85 9,021,950.00

6 south

west

454 63,157,682.00

7 West 748 146,547,512.00

Total 5047 1,122,173,355.00

11 | P a g e

4 Nisaji Bagrami Kabul 6 13 13 7

5 Herat Industrial

Park

Herat 928 969 871 193

6 Gorimar Balkh 185 198 191 18 7 Shadiyan

Industrial park

Balkh 190 233 233 38

8 Hisarshahi

Industrial park

Nangarhar 207 300 101 0

9 SeikhMisry

Industrial park

Nangarhar 300 640 0 0

10 QaleenSeikhMisry

Industrial park

Nangarhar 131 110 0 0

11 Bolan Industrial

Park

Helmand 300 -------------- 47 0

12 Bust Industrial

Park

Helmand 32 47 0 0

13 ShorAndam

Industrial Park

Kahandar 900 930 407 75

14 Andkhoi Industrial

Park

Faryab 229 114 0 0

15 Logar Industrial

Park

Logar 100 160 0 0

16 Khost Industrial

Park

Khost 80 100 0 0

17 Sheermahi

Industrial Park

Kunduz 400 526 0 0

18 Sanjadara

Industrial Park

Parwan 116 130 0 0

19 Wardak Industrial

Park

Wardak 40 48 0 0

20 Agcha Industrial

Park

Jowzjan 83 72 0 0

21 Pirkah Industrial

Park

Gazni 200 ----------- 0 0

Research Methodology

Purpose

Purpose of this research paper is to collect information’s about manufacturing industry and to

evaluate the existing industry to find challenges, recommendations and investment opportunities

Research objective

Objective of this research is to find out major challenges to Afghan manufacturing industry; and

this paper is a guideline for domestic and foreign investors.

Research question

What is the current status of Afghan private manufacturing industry and what are the specific

recommendations for government?

12 | P a g e

Scope and limitations

Scope of this study is limited to the Afghanistan manufacturing industry. Primary data on

manufacturing industry collected from Kabul industrial parks and different provinces of

Afghanistan including, Herat, Balkh, Kandahar and Nangarhar, khost and Helmand.

Survey is conducted from only from investors or firms holders, 134 questionnaires are filled

from Kabul industrial parks, Herat 32, Balkh 40, Kandahar 22,Nangarhar 7, from khost 7,

Helmand 9,total 251 Questionnaires are filled from mentioned provinces of Afghanistan

In survey investors were asked about their production, investments, (initial and current) number

of employees by the differentiation of gender challenges and recommendations.

Methodology This research paper is based on primary and secondary data, primary data is

collected with the help of questionnaires and secondary data is collected from different

government and non-government organization. The questionnaires are created to find the basic

information about Afghanistan manufacturing industry such as type of production, investment

current and initial, growth rate, and number of employees, marketing strategies, challenges and

recommendations. Quantitative research method is used to measure growth rate and basic

information about firms. Qualitative research method is used to measure marketing strategies,

barriers to compete in market etc.

Primary data is collected from Kabul industrial parks, Nangarhar, Khost, Balkh, Helmand,

Kandahar, and Herat while secondary data is collected from CSO, AISA industrial parks

department, Afghanistan investment law,

Primary Data Collection: Primary data is collected with the help of questionnaires and

251questionnairs are filled from the firms by the physical survey.

Secondary data collection; Secondary data is collected from the following government and

international agencies and articles

Afghanistan investment support agency data—base

Industrial parks department (AISA)

Central statistics organization (CSO)

Website investopedia

Analysis document of the IEEE12/2011geopolitical analysis of Afghanistan

Afghanistan private investment law,

World public library website

13 | P a g e

Chapter# 2

Provincial manufacturing industries

Source; primary data

14 | P a g e

Kabul manufacturing industry

In Kabul survey is conducted only in three industrial parks namely Pul-e-Charkhi, Juma

Mohammad Mohammadi and Nisagi Bagrami 103, 24, 7 questionnaires are filled respectively.

According to Afghanistan investment support agency 2355 manufacturing firms are registered

with the initial capital of USD 677,269,943.00three of the industrial parks consist of 1166

industrial plots. Kabul manufacturing industries 62% of them produce plastic and its different

products, 1% mineral water, 4% oxygen and pharmaceutical, 7% produce ice cream biscuits and

burger, 3% washing powder and washing liquid, rest of the firm produce 2, 2% like Iron bars,

ornamentals, leather shoes, marble stones, electric equipment’s, wood burning heaters, outdoor

stones, carton manufacturing, pressure cooker, aluminum utensil, spare parts, clothing and spare

parts etc.

98% of the firms operating in industrial parks are national and 2% of the firms are international.

38% of the firms use domestic raw material and 62% import from the regional and extra—

regional countries, of total imports 80% of raw material imports are from Iran, Pakistan, china

and turkey. 20% of raw material imports are from Gulf States, Europe and America. During firm

operations 93% of the firms use the electricity power transmission line while 7% of them use

generators as well. Initial investment in Kabul ranging $10,000 to the $1500000 and above, for

growth rate calculation total firms were divided in two categories of investments ranging from

10k – 100k which had 45% growth and 100k – above which had growth of 3.02% annually.

Surveyed firms in Kabul have 2542 male employees, 606 female employees and 668 skilled

labors. 96% of the Kabul firms distribute their productions inside Afghanistan and 4% of the

firm distribute domestically and also export. According to the survey 68% of the firms do not

have any marketing strategy and 32% use marketing tools for the promotion of their productions.

Nangarhar manufacturing industry

Nangarhar is an eastern province of Afghanistan. Nangarhar is composed of 7641 km2 area

which is 1.2% of total territory of Afghanistan6. According to geographical categorization east

zone is composed of Kunar ,Laghman ,Nangarhar and Nuristan.Total investment in

manufacturing industry in east is $75,332,478.00with the registration of 699 firms. During the

survey we were able to visit 7 firms of them our objective of the survey was to understand the

production and challenges and recommendation. Out of 7 industries 14% of them produce

nonalcoholic beverage, 14% produce PVC and other 72% of the firms produce mineral water ,

jam, washing liquid and etc. 55% of the firms use raw material domestic while 45% of them

imports raw material. During the production activity 57% of them use electricity provided and

the government and their private generators while 43% purely use the power transmission line

they do not use the private generators. Most of them have invested from 2008 to 2014; their

investment starts from $50,000__$500,000 and according to the conducted survey their current

capital ranging $60,000__$900,000. According to the calculation calculated with the compound

growth rate formula in Nangarhar growth rate is calculated 5.59 during the years of investment.

6Afghanistan statistical yearbook 2013-14

15 | P a g e

In these firm total 161 people are working and 100% workers are male, there is not a single

women working in these particular firms, these surveyed firms have 19 skilled labor.89% of the

firms holders use to do capacity building of their employees while 11% of them don’t have any

particular capacity building program. 89% of the produce goods sales inside the country while

11% of them sales inside and export it to the regional countries. According to the firm holders

100% of customers likes domestically produce goods considering quality, on time delivery etc.

distribution of the finished goods takes place by two ways namely with help of transportation

and another through sub offices or through the representatives in different provinces. 86% of the

firms have planned to expand their business into the other provinces while 14% of firms do not

have any plan for the expansion. According to the 86% respondents domestically produce goods

are better than imported goods and 14% of the respondent believes imported goods are used to

manufacture with the help of machineries and they do not have such advance machines to

compete imported products. In Nangarhar firms holders use marketing strategy to promote

domestic goods with the help of visiting cards brochures and advertisement.

Khost Manufacturing Industry

Khost is a south eastern province of Afghanistan; in south eastern zone we have Ghazni, Khost,

Paktia and Paktika. In south east total 85 manufacturing firms are registered with initial

investment of, $9,021,950.00. In Khost seven firms are surveyed out of seven firms 29% of the

firms produce washing soap and powder, 29% produce iodized salt, 28% produce juice and non-

alcoholic beverages and 14% produce chips. 100% of the firms imports raw material. 71% of the

firms use generators, 29% use generator and solar energy. Most of the surveyed firms have

invested in 2015. Initial investment and current investment of the Khost ranging from 10,000---1,

30000, According to the calculation of growth rate there is zero growth rate in Khost province.

The surveyed firms have total 103 numbers of employees out of 103 employees 93 males, 10

females among these labors 27 are skilled labors. Average salary range of the employees is $150.

100% of the firms do not have any capacity building program for their employees. Firms

distributes their produced goods through transportation inside Afghanistan and most of the firms

have plan to expand their business to other provinces of Afghanistan. 71% firms use to do

marketing through advertisements and 29% are not doing any kind of marketing for their

produced goods.

Kandahar manufacturing industry,

According to the geographical division of Kandahar locates in southwest of Afghanistan. South

west is composed of Daykundi, Helmand, Kandahar, Nimruz, Oruzgan and Zabul. According to

Afghanistan investment support agency total 454 firms are registered with the initial investment

of $63,157,682.00 where 22 questionnaires on manufacturing industries are filled only from

Kandahar. Same question were asked from Kandahar manufacturing industries. Respondent were

mostly situated in Kandahar industrial park. Where 23% of the firms produce washing soap and

cooking oil, 18% manufacturing firms produce plastic and its different products, 14% firms

produce construction steel products, 9% produce poultry and chicken food, 9% produce wheat

16 | P a g e

cleaning machines and spare parts, 9% of the firms are food processing, 9% firms produce

pharmaceuticals and acids and 4% of the firms produce papers.54% of the firms use domestic

raw material and 46% of the firms imports raw material from Iran, Pakistan, Russia, china,

Ukraine etc. 95% of the firms during industrial performance use power transmission line and

generators, additional coal and gas, 5% of the firms only use generators for the productions.

Average growth rate of the manufacturing firms of Kandahar is calculated by the compound

growth rate formula which shows the average growth rate of Kandahar is 29.49%. Total 609

people are working in manufacturing firm according to the data collected there is not a signal

women working in Kandahar manufacturing firms. Out of 609, 173 people are counted as a

skilled labor. 91% of the respondents do not any kind of skill development or capacity building

program for employees 9% firms have capacity building program. The average salary range of

the worker is $143.45. 91% manufactured goods distributes insides Afghanistan and 9% firms

also export the produced goods. Distribution in Kandahar take place through authorized dealers

and distributing through the transportation.82% firm have plan to expand their business through

the other provinces while 18% of firms do not have any plan for the expansion of the business.

59% of the Kandahar firms use to do marketing for the production while 41% people do not any

idea about the marketing of the products.

Balkh manufacturing industry,

Balkh is in North West of Afghanistan, North West includes Balkh, Faryab , Jowzjan, Samangan

and Sar-e Pol. According to the Afghanistan investment support agency total 501 firms are

registered with the initial investment of $120,600,823.00. The particular survey is only

conducted in Balkh province, 34 questionnaires are filled from manufacturing firms. 21% of the

surveyed firms are producing eating salt, dairy products, 7% firms manufacture cooking oil and

washing soap, 11% firms produce wheat flour, 18% firms produce different types of plastic

products, 7% firms manufacture rug, 7% produce non-alcoholic beverages, 7% produce tissue

papers, 4% produce electrical equipment, 7% produce gypsum 3% manufacture oxygen and 4%

are processing soybean.

The raw material used by the firm is 58% domestic and 42% imported. 100% firms use

electricity as energy for firm’s performance; additionally firms also use generators, coal and gas.

The average growth rate of the firms invested in Balkh is calculated 70.6%. Total 590 workers

are working in these firms where 81 workers are female. Where out of total workers 136 are

skilled labor, 64% of the firms do not have any capacity building program for their employees

while 36% firm are conducting capacity building programs according to needs. The average

salary of each individual worker is $ 157. 97% produced goods in Balkh province distributes

inside Afghanistan and 3% of them export to the other countries. 94% firms have planned to

expand their business while 4% do not have any plan for expansion of their business.

17 | P a g e

Helmand manufacturing industry

Helmand is a province of Afghanistan also situated in south west. Helmand province is

composed of 58305.1km2 area.7 Total 9 questionnaires are filled from Helmand in manufacturing

industry, where the same questions are asked from the investors invested in Helmand. According

to the primary data collected from the mentioned province. Out of 10 firms 38% produce ice,

12% produce P.V.C and aluminums, 13% produce washing soap and vegetable oil, 12% certified

seeds and13%produce biscuits and food items.

100% of the firms imports raw material from regional and extra—regional countries. Regarding

electrical energy 62% use power transmission line and generator, meanwhile 38% only use

generators for electricity. Average growth rate of Helmand manufacturing industry is calculated

9.06%. In survey firms total 114 people are working where 33 people are skilled labor and there

is not a single female working in Helmand manufacturing industries. About the capacity building

75% respond negatively and 25% use to do capacity building of their employees. The average

wages of employees is $ 125.9. 87% of the produced goods distribute inside Afghanistan and

13% distributes domestically and also export to the other countries. Among the surveyed firm

87% of the firms holders are interested to expand their business through the other provinces of

Afghanistan and 13% do not have plan for the expansion of business. Marketing is a spirit of the

business 50% of the Helmand firms do not use marketing for the promotion of their production.

Herat manufacturing industry

Herat is a western province of Afghanistan. According to the Geographical division, west of

Afghanistan consist of Badghis, Bamiyan, Farah, Ghor and Herat. Afghanistan investment

support agency data base shows 748 firms are registered in west of Afghanistan with initial

capital of $146,547,512.00. In Herat 32 questions are answered by the investors or firms holders.

According to the primary data analysis 50% of the firms produce snacks which include biscuits,

salty snacks; chips etc. 18% firms’ manufactures fruit juice and non-alcoholic beverages, 11%

firms produce plastic and its different products like PVC, shopping bags etc. 7% firms

manufacture shampoo, washing soap and washing liquid, 7% produce small turbine and

electrical wires, 4% produce outdoor stone and 3% manufacture construction steel. Raw material

use to produce the mentioned goods 73% imports and 27% firms use raw material is domestic.

100% of the firms use electricity as an energy beside use of electricity majority of the firms use

coal and gas as a secondary source of energy. The surveyed firms provided job opportunity to

1322 people where 218 are female and 264 are skilled labor. 70% of the firms have capacity

building program for their employees and 30% do not any kind of capacity building program.

The averages wages of the workers is $190. Firm’s sales their produced goods inside Herat and

in different provinces of Afghanistan but none of them export. 89% firm use to do marketing for

promotion of manufactured goods while 11% do not have marketing strategy. The manufacturing

industry of Herat shows 8.38% growth rate. Growth rate is calculated by the formula of 7 Afghanistan statistics yearbook 2013-14

18 | P a g e

compound growth rate, only those firms are considered among primary data whose have

answered the question of initial investment, current investment and years of investment.

19 | P a g e

Chapter #3

Afghanistan Manufacturing Industry Analysis

Source; primary data

20 | P a g e

Afghanistan Manufacturing products

Industry is a back bone of the nations, those nations who has strong industries they are self-

reliant. Nationally produced products reduce the imports which directly control flow of capital

outwards. Afghanistan was indulged almost for 40 years of wars and instability, after 2001

Afghanistan started its new ways towards unity, stability and modernization. Wars destroyed all

existing infrastructures. Now gradually Afghanistan is moving towards self-reliance, compare to

every year Afghanistan is moving ahead with the support of international community and

national hard work. Afghanistan manufacturing industry is composed of plastic , steel, vegetable

oils, Rags poultry, washing soap, washing powder, wheat flour, leather shoes, Ice cream biscuits

etc. 212 firms answered about their productions. Afghanistan industry is not able to fulfill the

required needs of Afghanistan but besides this Afghan manufacturing industry needs strong and

regular support from government. Due to the unnatural borders regional countries are destroying

and are threat for the new afghan industry. Afghanistan is only consumer economy regarding

manufacturing it’s completely new for Afghanistan. Since 2001 Afghanistan Manufacturing

industry is growing very slow as compare to every year there is positive change in

manufacturing. Besides this there are some key barriers which cause regular hindrance to the

growth. Out of 212 firms, 91 firms produce plastic products including PVC, water tanks,

shopping bags and foot wearing slippers. 18 firms produce mineral water and non-alcoholic

beverages, 8 firms produce pharmaceutical and oxygen, 23 firms produce ice cream, snacks and

biscuits, 3 firms produce wheat flour, 13 firms’ manufacture washing soap, washing liquid and

washing powders. Only 1 firm produce leather shoes, 9 firms are processing marble and outdoor

stones, 10 firms produce construction steel small turbines and wheat cleaning machines. 9 firms

manufacture tissue papers and stationary, 7 firms manufacture iodized salt, 4 firms produce

poultry, chicken food seeds, 9 firms produce vegetable oil, 3 firms produce Aluminum utensils

and pressure cookers, 3 firms manufacture rags and foams while 1 firm is processing soybean

seeds.

21 | P a g e

Raw Material

Raw material is often natural resource like crude

oil, wood, scraps and iron, these are things which

exist in Afghanistan but unfortunately due to the

weak control of state on whole Afghanistan it’s

difficult to utilize all local resources. Afghanistan

have more than 1400 minerals valued $3 trillion

but exploration and exploitation of these

resources waiting for peace and stability. The

60% of the firms import raw material while 40%

of firms use domestic raw material

Energy used in Firms

Electricity is a basic source of energy for the firms oprating in Afghanistan. Because electrical

energy is not available in all over the Afghanistan. Therefore it is tried to understand which kind

of energy resource is used by the firms. According to the primary data most of the firms use

power transmission line for the industrial process. most of them also use private genrators during

9118

823

313

19109

74

9331

0 20 40 60 80 100

PlasticMineral water & non--alcoholic beverages

Pharmaceuticals, oxygen and acidIce cream, biscuits and snacks

wheat flouresoap, washing powder and washing liquid

leather shoesMarbel and outdoor stones

steel, small turbain and cleaning machinesTissue papers and stationary production

salt productionpoltary and chickens food

vegitable oilAluminium utensils & pressure cookers

Rags and Foamssoyabean grain processing No. of Firms

Domestic40%Import

60%

Raw Material

Domestic Import

22 | P a g e

the time when there is loadshading in electricity. Some of the firms use coal and gas as a primary

source of energy and few of the firms use solar energy as a basic source of energy.

Investment years

According to the primary data firms has invested in Afghanistan since 1973, and some of the

firms surveyed were fresh and new in the market,. 1973—2002 are considered in one block

because this investment belongs to the privously regime, here the objective of this question was

to understand investment yearly. Since 1973—2002 , 17 firms have invested which are still

active. 22 firms have invested in 2003—2004, 25 firms invested in 2005—2006, 19 firms start

performing since 2007—2008, 38 firms invested in 2009—2010, 41 firms started working in

2011—2012, 55 firms invested in 2013—2014 which is most highest as compare to the other

years and still 26 firms invested in 2015.

Initial investment

Afghanistan market is the most profitable market compare to the region, because before 2001

negligible industry existed, everything was importing from the regional countries. Afghanistan

was only consumers’ economy. After 2001 people started investing in local manufacturing

industries, it has been seen in Afghan manufacturing sector the initial investment doubled or

even changed into 4, 5 times in the period of three to five years. Total 191 firm holders answered

to the question about the initial investment where 112 firms invested within5000--50,000

thousand dollars while most of them have investment less than 20 thousand dollars and 25 firms

invested from 50,000—100,000, 46 firms have invested from 100,000---500,000 and8 firms have

invested within 500,000---18000,000.

17 22 25 1938 41

55

26

0204060

1973--2002 2003--2004 2005--2006 2007--2008 2009--2010 2011--2012 2013--2014 oct. 2015

112

25

46

8

5000>50,000

50,000 >100,000

100,000 >500,000

500,000>18000000

No. of Firms

USD

Initial Investment

23 | P a g e

Current capital

Current capital of the firms is considered as growth or change in initial investment. Few of the

respondents’ does not answered to the question about the primary and current investment those

who answer the question they are included in the following data, chart explains the difference in

current and initial investment, from $5000>50,000. 56 firms have their current capital while in

initial investment there are 112 firms, $50,000>100,000 48 firms have their current capital in this

range while in initial investment there is 25 firms in this range. If we compare both graphs of

initial investment and current investment it shows the firms whose initial investment was less,

with the passage of time there investment increased vigorously, the graph indicates reduction of

number of firms in low investment and increase in number of firm in high investment.

Average Growth Rate %

Compound average growth rate formula is used to measure investment growth rate particularly

when number of years is variable. There are two values ending value and beginning value. We

have considered current investment as ending value while initial investment as beginning value.

Those firms which do not answered to the initial investment or current investment or any one of

them, they are neglected. According to the figures initial capital of the most firms got 2 times or

three times or even 4 time in some cases in time period of four to five years. A very little number

of firms were having reduction in their capital. After calculation of growth rate for each

individual firm the average of the total growth rate has been taken. According to the calculation

the average growth rate of Afghan manufacturing industry is 102.03%. Following is the formula

which used to measure the average growth rate.

8

8Investopedia compound growth rate

0 10 20 30 4050

60

5 0 0 0 > 5 0 , 0 0 0

5 0 , 0 0 0 > 1 0 0 , 0 0 0

1 0 0 , 0 0 0 > 5 0 0 , 0 0 0

5 0 0 , 0 0 0 > 4 0 0 0 0 0 0

56

48

59

20

Number of Firms

USD

CURRENT CAPITAL

24 | P a g e

Employment and wages

Industrialization means economic stability, growth of industry has many positive effects on

society, besides controlling flow of capital outwards, strengthening economy, making nation

economically independent, through an industrialization capital of an individual flow among the

nation which have direct and indirect benefiters. Afghanistan surveyed manufacturing industry

have total 6887 direct employees where 5912 are male and 975 are female while 1509 are skilled

labor, skilled labor includes males and females. Wages of the labors and skilled employees vary

from 5000AFN to the 50000AFN. The maximum and minimum salary rang was asked in

questionnaires, according to the primary data the average of the salary rang is calculated

$159/per month, which indicates cheap labor cost.

Capacity building

Capacity building is a tool which enhances capacity of

individuals; trend of capacity building in Afghanistan

manufacturing industries is compared weak. 63% of the

respondent has no capacity building program and plan while

37% of the respondent use to do capacity building of their

employees accordingly

Sales of produced goods

96% of the producers sales their products inside Afghanistan while 4% export to the Russia,

Ukraine and Pakistan, This question was asked to understand flow and circulation of

domestically produce goods. According to the respondent data most of the producers sales their

produced goods in their respective zones while few of the firms sales their products in other

provinces.

0 1000 2000 3000 4000 5000 6000 7000

Total

Male

Female

skilled labor

6887

5912

975

1509

Employment

242

9

DOMESTIC EXPORT

Yes 37%

No63%

25 | P a g e

Customers’ response towards domestic goods

As graph shows majority of the respondents replied positive to the customers response towards

the domestically produce good, some of them said customers have not good response towards the

domestically produce goods. This question is also asked from the firms holders, it is not asked

from consumers.

Expansion plan for business

251 firms are asked about the expansion of their

business throughout of Afghanistan 70% of the

respondent, respond positively while 30% did not

have any plan for the expansion of the business. If

there is peace All over the Afghanistan and electrical

power I assume 100% people will be willing to

expand their business.

Comparison domestic goods verses imported goods

Comparison of the domestic goods with the imported goods is conducted from the perspective of

investors, here it was asked from the investors about the difference of the products locally

produce and imported. The objective of this question was to understand the major difference

between products. As a response we have received number of ideas about the difference but

some of the more important are as follows;

65% responded there is no difference between imported products and locally produce products

12% responded there is difference in

the price of the products, locally

produce goods are comparatively more

expensive because there is no

subsidize electricity, high tax on

import of raw material, and there is

corruption in government which

collectively affects the cost of finished

goods.

0 50 100 150 200 250 300

Good

Bad

Yes70%

No30%

Yes

No

No difference65%

Price 12%

Quality 17%

Brand 6%

No difference Price Quality Brand

26 | P a g e

17% said there is difference in quality of the products, locally produce goods are comparatively

low quality because there is no advance technology while regional countries utilize advance

technology.

6% said there is difference of brand. Most of the imported products are a well-known brands

while local firms are comparatively new.

Marketing strategies

Marketing is the spirit of the business;

marketing is the only thing which

enhances the awareness about the goods

produced. Marketing motivate people to

buy or use nationally produced goods.

Unfortunately when it is asked from the

firm holders about the their marketing

strategy, 56% of them responded

negatively, they are not doing any kind of

marketing and they do not have any plan for this while 44% of them were doing marketing and

they have marketing plan and they are allocating special budget for marketing.

Competition barriers

The question about the barriers to the competition was answered by 239 firms, There are many

barriers to the manufacturing

industry in Afghanistan, here

mentioned are pointed out by

the investors which are key

barriers and these barriers are

the main obstacles which are

slowing the growth of

manufacturing industry. 30%

of the firms are complaining

against the illegal imports and

open borders, the products

which are importing illegally

without paying tax to the customs the price of these products in market is always less than

nationally produced goods therefore this becomes a reason to fail the nationally produce product

in market. 23% of the firms holders complain against insecurity, 1% people complained against

corruption, the mentioned corruption are relevant to the three government organs interior

ministry, ministry of finance, customs department and DABS. Unfortunately corruption in

government is a blinking threat if government do not take appropriate action to mitigate

corruption in different government agencies, in near future it may have disastrous implications

on investment.8% of the investors complained against the lack industrial land. 1% of the

Yes44%

No56%

Marketing

Yes No

Insecurity 23%

Legal and Illegal

Imports 30%

Electric Power28%

Capital 1%

High tax on import of

Raw Material 6%

Industrial Land 8%

Industrial Loans

3%

Corruption 1%

27 | P a g e

responded complained of insufficient capital, there is no proper commercial bank or any

industrial support bank which can provide industrial loans to the firm holders to acquire the

updated technology. 28% people complained insufficiency and high price of electrical energy

while few of them was not happy with the professional attitude of DABS’s workers. 6% people

complaining high tax on imports of raw material. 3% of the respondent complain lack of

industrial loans to the firms, there is no bank and not any procedure existing which can provide

industrial loans to firms.

28 | P a g e

Chapter# 4

Investment opportunities and challenges

Source; primary data

29 | P a g e

Investment opportunity in Manufacturing

Afghanistan is a landlocked country with 30 million estimated populations. According to CSO

trade balance of last 5 years have 94.6% imports and 5.4% exports, Afghanistan can be covert

from consumer economy to an exporter country, and Afghanistan has 1400 different types of

mineral reserves. Afghanistan can be a corridor among central Asian countries and East Asian

countries, due to the new economy Afghanistan manufacturing sector is not able fulfill the

demand of the whole country. Analyses show the goods which are produced by most of the firms

is plastic and its different products. The remaining producers are too much limited or even they

are reserved to a province or zone. During the survey a single firm of sugar is not found while

consumption level of sugar is so high. According to CSO Afghanistan has imported during

2013—14, 155789 tons sugar from the neighboring countries. Same like sugar Vegetable oil is

imported during 2013—14, 408943 tons. Besides this there are many other goods which are still

not producing or manufacturing in Afghanistan. As according to the measurements afghan

market is more profit oriented as compare to the any other country, still Afghanistan export fresh

fruits and dry fruits and rug and different kinds of carpets and Afghanistan also exports raw

material for chemical industries. There are many strong points which support investment in

Afghanistan few of them are as following

1 Consumers market,

2 High demand of basic needs items in market.

3 Zero competition level

4 Required minimum investment

5 Cheap labor force

6 Favorable legal environment for investment.

7 Availability of cheap and local raw material

8 Government support investment

9 Government provides industrial land in industrial parks to the investors

10 International introduction of locally produced goods by organizing different events with

different nations.

Afghanistan private investment law,

Afghanistan investment law protect investors either they are local or foreigners. Afghanistan

investment law support investors to attract investment for the development of sustainable

economy. Few point from investment law and mentioned as following.

1 Investment law allow utilization of tangible and intangible capital in the form of cash,

credit, material goods, services trade mark etc. will be approve by high commission.

2 Qualified domestic and foreign firms can invest in mining, construction, production

and services related activities.

30 | P a g e

3 Domestic and foreign investors can do joint venture among themselves or even with

the government or even they can invest individually and independently.

4 Investors can transfer their capital out of Afghanistan.

5 Private investor can buy and sale their firm. Soled firm capital can be transfer out of

Afghanistan.

6 Investors can open the accounts in the banks

7 Foreigner and local investors can get loan, credit in advance etc.

8 Investor is bound to pay tax customs and bond to follow all internationally known

principles.

Challenges to Afghanistan manufacturing sector

Afghanistan manufacturing sector is facing number of challenges which are following

1 Insecurity

2 High tax on import of raw material

3 Massive flow of legal and illegal imports

4 Unavailability of industrial land

5 Lack of sufficient investment/capital

6 Lack of industrial law

7 Lack of industrial policy

8 Less electricity

9 Expansive electricity

10 Lack of industrial loans

11 Lack of skill labor

12 Corruption in government proceedings

13 Corruption in customs departments

14 Lack of updated technology

15 Tax on imports of capital goods

31 | P a g e

Chapter #5

Recommendations

Source; pharmaceutical inspection co-operation scheme, website http://www.picscheme.org/publication.php?id=8

32 | P a g e

Recommendations;

One of the major objectives of this paper was to collect strong and challenging recommendations

from firm holders. according to the findings recommendations are calculated from the primary

data and all those things which are supporting private investment or barrier for investment, that

are considered as recommendations and barriers are converted into recommendations in the form

of solutions. Recommendations are divided into three categories

1 Recommendations to the government

2 Recommendations to the Afghanistan investment support agency

3 Recommendations to the firm

Recommendations to the government

Recommendation on government or mostly relevant to the ministry of trade and industries,

ministry of finance, Interior ministry, DABS and high commission on investment, are as

following;

1 Insure security of the investors

2 Reduce tax on raw material

3 Stop illegal imports

4 Eliminate corruption in custom departments

5 Eliminate corruption from government proceedings particularly during tax collection

6 Impose high tariff on imports of all those things which are produced domestically

7 Eliminate bribes concept from police particularly when a firm or individual

transferring its finished goods or raw material from one place to another.

8 Provide subsidize and strong electricity especially to the manufacturing sector either

firm exist in industrial parks or out of industrial parks

9 DABS electricians stationed on different transformers or locations should not ask any

kind of bribes or extra money when there is need of investors for their help.

10 Introduce industrial banks which provide loans to the investors at very low interest

rate.

11 Introduce comprehensive private industrial law

12 Provide electricity to all provinces

13 Explore the mines to provide local raw material to the firms

14 Eliminate tax on imports of capital goods

15 Introduce quality control mechanism for domestically produce goods

16 Bound all government projects to utilize domestically produce goods

17 Government should announce a tax free period from 1-5 years, for all those firms

who are investing in manufacturing sector.

33 | P a g e

Recommendations on Afghanistan investment support agency

1 Introduce a mobile desk for investors which should be in coordination of all line

ministries and organs

2 Reform Afghanistan investment support agency data-base to measure and calculate actual

investment

3 Introduce a mechanism which can regularly evaluate every firm which is getting work

permit to understand the things which are said during the taking permit or not

4 Introduce investment policy yearly according to the situation of the state.

Industrial parks department

1 Evaluate the firms existing in industrial parks, those firms which are not

operational according to their business plan cancel their permits and provide to

the active firms

2 While providing industrial land evaluate business plan always keeping in view

trade deficit of Afghanistan, and prioritize according to the trade deficit

3 Provide industrial land to all those firms which can stop outwards flow of capital,

4 Introduce industrial policy document for every years.

5 Provide conditional time period for all those firms who are getting industrial land

to be operation otherwise the provided land will be cancelled

Recommendations on firm’s holders

1 Produce quality goods.

2 Update technology according to the need and requirements.

3 Use strong and strategic marketing techniques also specify budget for marketing.

4 Make your produce goods as a brands

Conclusion

After analysis of the primary and secondary data, Afghanistan manufacturing sectors still not

able to full fill needs of Afghanistan, where the existing industry needs special focus of Afghan

government. According to Afghanistan investment support agency data—base total 5049

manufacturing firms are registered with the total investment$ 1,122,173,355.00 survey covered

251 manufacturing firms in Kabul, Nangarhar, Balkh, Kandahar, Herat, Helmand and Khost,

Afghanistan manufacturing industry produce basic needs products but not covering all basic

needs products, producing few of them. According to CSO Afghanistan manufacturing sector

contributes 18.7% in GDP. There is big gap for investment opportunities in manufacturing sector

the existing firms are not able meet the existing demand, most the existing firms produce plastic

while very less number of firms produce, pharmaceutical and other products.

Illegal imports, corruption and high price of electricity are the challenging threats for Afghan

industries. The illegal imports which compose major part of the market are coming from Iran,

34 | P a g e

Pakistan and central Asian states. Regional dumping policy is an economical terrorism for

Afghanistan manufacturing sector.

Afghanistan industry can only be able to become an export oriented industry if Afghan

government removes all kind of corruption from its organs particularly from customs and

security agencies. Afghan government should have sovereign relations with regional countries to

adopt the policy of tit for tat same tariff and taxies as it exists on respective sides of border.

35 | P a g e

References

Afghanistan statistical year book 2013—14 CSO

Investopidiahttp://www.investopedia.com/terms/c/cagr.asp

Spanish institute for strategic studies/ Analysis document of the IEEE12/2011geopolitical analysis of

Afghanistan/ http://www.ieee.es/en/Galerias/fichero/docs_analisis/2011/DIEEEA12-

2011_Geopolitica_AFganistan_GBBallesteros_ENGLISH.pdf

Michael Yon online Magazinehttp://www.michaelyon-online.com/geopolitical-analysis-of-

afghanistan.htm

Afghanistan investment support agency industrial parks directorate

Afghanistan private investment law

36 | P a g e

Appendix

List of firms surveyed

Number Name Name of product Address

1 Spin Ghar Plastic Mineral water bottles Pul-e-charkhi Kabul

2 pressure cooker product Pressure cooker Pul-e-charkhi Kabul

3 Aria koorer Maze Pul-e-charkhi Kabul

4 Five Star plastic shoes Pul-e-charkhi Kabul

5 Drown Lawd Steel production Pul-e-charkhi Kabul

6 Afghan Shaheen Turk clothing powder Pul-e-charkhi Kabul

7 Hero plastic Plastic foot wears Pul-e-charkhi Kabul

8 Paktia Star shoes Pul-e-charkhi Kabul

9 Max proud Cake product Pul-e-charkhi Kabul

10 Tawana product plastic basket Pul-e-charkhi Kabul

11 Haronkhalil plastic materials Pul-e-charkhi Kabul

12 Hewad Right PVC Pul-e-charkhi Kabul

13 Sedaqat plastic Plastic foot wears Pul-e-charkhi Kabul

14 Sediq plastic Plastic foot wears Pul-e-charkhi Kabul

15 Kabul Kowser pipe Pul-e-charkhi Kabul

16 Sky shoes Leather shoes Pul-e-charkhi Kabul

17 Baqa plastic Plastic foot wears Pul-e-charkhi Kabul

18 Afghan National Leather shoes production Pul-e-charkhi Kabul

19 SafaSahil Plastic Pul-e-charkhi Kabul

20 Tawfiq plastic Plastic foot wears Pul-e-charkhi Kabul

21 Sun rise plastic Plastic foot wears Pul-e-charkhi Kabul

22 Shuhrat plastic Plastic foot wears Pul-e-charkhi Kabul

23 Jawed yaserOryakhail Plastic production Pul-e-charkhi Kabul

24 Sarhad plastic Plastic foot wears Pul-e-charkhi Kabul

25 Kabul Turk PVC Pul-e-charkhi Kabul

26 Auqab plastic Plastic products production Pul-e-charkhi Kabul

27 Khalid Arab Aluminum utensils Pul-e-charkhi Kabul

28 Iftekhar chawla Foot wears Pul-e-charkhi Kabul

29 Zurmat plastic Plastic foot wears Pul-e-charkhi Kabul

30 Fakhr Afghan plastic production

Juma Mohammad Mohammadi

Kabul

31 Afshan plastic food materials

Juma Mohammad Mohammadi

Kabul

32 Bratheransadat PVC

Juma Mohammad Mohammadi

Kabul

33 Panel tech

Electrical Switch board,

electronic

Juma Mohammad Mohammadi

Kabul

37 | P a g e

34 Mumtaz food materials Food materials

Juma Mohammad Mohammadi

Kabul

35 BahadarAbid Doors and window production

Juma Mohammad Mohammadi

Kabul

36 Habib Gulzar Ice-cream production

Juma Mohammad Mohammadi

Kabul

37 Afghan polisterin Wall production

Juma Mohammad Mohammadi

Kabul

38 Food Azin food materials Food materials

Juma Mohammad Mohammadi

Kabul

39 Tarsianwilingy cloth production Pul-e-charkhi Kabul

40 Kowser plastic Plastic foot wears production Pul-e-charkhi Kabul

41 Khan engineering spare parts Pul-e-charkhi Kabul

42 Able plastic plastic Pul-e-charkhi Kabul

43 Nasir riaz Foot wear Pul-e-charkhi Kabul

44 Fresh Masnowt Burger Pul-e-charkhi Kabul

45 HussainGulArouybi Plastic pipe Pul-e-charkhi Kabul

46 Uromex PVC Pul-e-charkhi Kabul

47 Hofianbastan Foot wear Pul-e-charkhi Kabul

48 Bakhtiar Gull plastic Plastic Foot wear Pul-e-charkhi Kabul

49 Behbood Bamyan Construction steel products Pul-e-charkhi Kabul

50 Ager Carton Manufacturing carton manufacturing Pul-e-charkhi Kabul

51 Bilal chardehi Cake ,Biscuit Pul-e-charkhi Kabul

52 Murtaza production Plastic packaging Pul-e-charkhi Kabul

53 Maihanshamal Foot wear Pul-e-charkhi Kabul

54 watan plastic Foot wear Pul-e-charkhi Kabul

55 sigma plastic Foot wear Pul-e-charkhi Kabul

56 super hewad plastic Plastic box Pul-e-charkhi Kabul

57 Gulab plastic Foot wear Pul-e-charkhi Kabul

58 Mustafa Khalid plastic Foot wear Pul-e-charkhi Kabul

59 Etehad Afghan plastic Foot wear Pul-e-charkhi Kabul

60 Yazed Iran plastic pipe Plastic pipe Pul-e-charkhi Kabul

61 Zarin jan plastic Plastic pitcher Pul-e-charkhi Kabul

62 Ariana Rail pipe Pipe plastic Pul-e-charkhi Kabul

63 Beroni Furniture Furniture production Pul-e-charkhi Kabul

64 Arbakan PVC PVC Pul-e-charkhi Kabul

65 Botlle production Empty bottle Pul-e-charkhi Kabul

66 Adam Atlass plastic boxes Pul-e-charkhi Kabul

67 Biscuit and Ice cream production Ice-cream &biscuit Pul-e-charkhi Kabul

68 Turk Best Plastic color Pul-e-charkhi Kabul

69 AbasinSherzad Printing press Pul-e-charkhi Kabul

70 Etefaq Omar plastic foot wear Pul-e-charkhi Kabul

71 Alkozi plastic Pipe plastic Pul-e-charkhi Kabul

38 | P a g e

72 Raksahak Pipe PVC Pul-e-charkhi Kabul

73 Mutahedfooth wear Foot wear Pul-e-charkhi Kabul

74 Kamiabwatan Plastic foot wear Pul-e-charkhi Kabul

75 Shaheen foam masnowat Foams pillows production Pul-e-charkhi Kabul

76 Plastic materials production Pul-e-charkhi Kabul

77 Sadaf production Washing liquid production

Juma Mohammad Mohammadi

Kabul

78 Plastic materials production Plastic production

Juma Mohammad Mohammadi

Kabul

79 Bakhtar pharmacy Medicine production

Juma Mohammad Mohammadi

Kabul

80 Sadat Glass production Glass

Juma Mohammad Mohammadi

Kabul

81 Plastic baskets production Fruit baskets Juma Mohammad Mohammadi

82 Outdoor stone cutting Outdoor Stone Production Pul-e-charkhi Kabul

83 Tormko Company PVC & Pul-e-charkhi Kabul

84 Safa Juice Juice Pul-e-charkhi Kabul

85 Pirozi Plastic Plastic Pul-e-charkhi Kabul

86 Ramak Turk Chilik Heater Pul-e-charkhi Kabul

87 Haidari Brothers Production PVC Pipe Pul-e-charkhi Kabul

88 Maihan Dost Oxygen Oxygen production Pul-e-charkhi Kabul

89 Sharam Raisins cleaning Raisin & Carton manufacturing Pul-e-charkhi Kabul

90 Dunia Internationl Group Liquid Washing Material Pul-e-charkhi Kabul

91 Jamshid Brothers Raisins cleaning Raisin Cleaning Pul-e-charkhi Kabul

92 Rahim Sahak Footwear Pul-e-charkhi Kabul

93 Marcopolo Footwear Manufacturing Pul-e-charkhi Kabul

94 Shinwari Aluminum Aluminum Dishes Pul-e-charkhi Kabul

95 Abdul Rahman Sons Carving

Outdoor Stone Production &

Marble Stone Production Pul-e-charkhi Kabul

96 Khosh Qismat Aluminum Aluminum Dishes Pul-e-charkhi Kabul

97 Khorasan Plastic Footwear Manufacturing Pul-e-charkhi Kabul

98 Barakat Plastic Plastic Water Tank Pul-e-charkhi Kabul

99 Arezo Plastic Plastic Pipe Pul-e-charkhi Kabul

100 Nasir Reyaz Plastic Footwear Pul-e-charkhi Kabul

101 Samimi Furniture Furniture manufacturing Pul-e-charkhi Kabul

102 Naw Bahar Plastic Footwear Footwear Pul-e-charkhi Kabul

103 Naveed Mazlomyar PVC & Aluminum Pul-e-charkhi Kabul

104 Hilal Outdoor Stone Outdoor Stone Pul-e-charkhi Kabul

105 Amir Afghan Medicine Pul-e-charkhi Kabul

106 Pipe Manufacturing Pipe Manufacturing Pul-e-charkhi Kabul

107

Watan Ziba Pipe Manufacturing

& PVC PVC Pul-e-charkhi Kabul

108 Bumi Handicraft Handicraft Nisagi Bagrami Kabul

109 Goshaesh Nawin PVC Nisagi Bagrami Kabul

39 | P a g e

110 APG Wool Production Wool Production Nisagi Bagrami Kabul

111 Joya Company

Storing commercial Property

& Storing Place Nisagi Bagrami Kabul

112 Ahmad Printing Press Book , Posters & Newspaper Juma Mohammad Mohammadi

113 Amo Amiri Plastic Footwear Pul-e-charkhi Kabul

114 Darkhil Footwear Manufacturing Footwear Pul-e-charkhi Kabul

115 Bahador Obaid PVC Pul-e-charkhi Kabul

116

Sha Barat Toilet Paper

Manufacturing Toilet Paper Pul-e-charkhi Kabul

117 Qasemi Win House PVC Pul-e-charkhi Kabul

118 Zurmat Footwear Pul-e-charkhi Kabul

119 Roshan Aria Footwear Pul-e-charkhi Kabul

120 Rahimi Plastic Footwear Pul-e-charkhi Kabul

121 Tabiat Mineral Water Mineral Water Pul-e-charkhi Kabul

122 Royal Plastic Pipe Pul-e-charkhi Kabul

123 Khorasan Oxygen Production Oxygen Juma Mohammad Mohammadi

124

Ahsanullah Habib Carton

Manufacturing Carton Pul-e-charkhi Kabul

125 Ariana Ziba Iodine Salt Manufacturing Nisagi Bagrami Kabul

126 Golshan Shadab Soap Manufacturing Nisagi Bagrami Kabul

127 Tarsian and Blinkley Military clothes Manufacturing Juma Mohammad Mohammadi

128 Ganjlar Furniture Furniture manufacturing Juma Mohammad Mohammadi

129 Amir Gul Plastic Juma Mohammad Mohammadi

130 Chardihi Printing Press Book , Posters & Newspaper Juma Mohammad Mohammadi

131 Ayenda Drokhshan Iodine Salt Manufacturing Juma Mohammad Mohammadi

132 San Pharma Medicine Juma Mohammad Mohammadi

133 Sari Printing Press Book, Posters & Newspaper Pul-e-charkhi Kabul

134 Kabul Glaxi PVC Nisagi Bagrami Kabul

135 Qanadi Helmand Cake & Cookies Helmand

136 Hadal Nasri Company Ice Helmand

137 Etehad Nasri Oil , Soap Kandahar

138 SafaHelamand Ice Helmand

140 Horawi Company Ice Helmand

141 Best Hewad Shoes Helmand

142 Bost Cereal Seed Eggs Manufacturing Helmand

143 Etefaq Helmand Aluminum & PVC Helmand

144 GhafarAzizi Oil, Soap Helmand

145 SahatWaziri Iodine Salt Manufacturing Khost

146 Soap Company

Washing Powder & Soap

Manufacturing Khost

147 Khost HaidarKhil Pomegranate Juice Khost

148 Kawsar Shafa Non--Alcoholic Beverage Khost

149 Jawhar Iodine Iodine Salt Manufacturing Khost

40 | P a g e

150 Abas Afghan

Washing Powder & Soap

Manufacturing Khost

151 LowaCheps Food Material Kandahar

152 NawiKandhar Construction Steel Kandahar

153 Mahmood Satar Mills Construction Steel Kandahar

154 Mahmood Hanifi Outdoor Stone Kandahar

155 Mansoor Momin Acid Manufacturing Kandahar

156 Masood Hekmat Oil , Soap Kandahar

157 Ayenda Sazan Poultry Production Kandahar

158 Kawsar Food Material Cake & Cookies Kandahar

159 Keyor Pharma Medicine Kandahar

160 Abdulrahman baba Steel Mill Kandahar

161 Tariq Mateen Car material Kandahar

162 Safa Maiwand plastic bag Kandahar

163 Shah Abdali pipe , shoes Kandahar

164 Rise plastic Shoes Kandahar

165 Watan workshop Wheat cleaning machines Kandahar

166 Ariana kakar Vegetable oil production Kandahar

167 Aria Milat paper production Kandahar

168 Amin Salim Oil production Kandahar

169 Alfaqeer production oil production Kandahar

170 Afghan nisar pipe Kandahar

171 Food material chicken food material Kandahar

172 Malik juice production juice production Kandahar

173 Masroor food production juice, jam, wrench Kandahar

174 Meeru water Mineral water Nangarhar

175 Sahar food production juice, water, vinegar Nangarhar

176 Sidiq Kamran production PVC pipe Nangarhar

177 Arab Nishat dishwashing liquid Nangarhar

178 Khalil Raihan juice, jam, wrench Nangarhar

179 Khalid Faizad food production juice, jam, wrench Nangarhar

180 Hamidrahim powder, shampoo Nangarhar

181 Amir jaghal wheat, flour Balkh

182 Murtaza Huma macaroni Balkh

183 Afghan bazaar carpet, rug Balkh

184 Yusuf Zahid oil oil Balkh

185 Shamshad plastic Water tankers Balkh

186 Roshan plaster stone, plaster Balkh

187 Balkh oxygen oxygen Balkh

188 Super almas plaster plasters Balkh

189 Afghan soybean soybean peace Balkh

41 | P a g e

190 Muhammad Mukhtar production PVC, Boiler Balkh

191 Pamir Blour Limited salt Balkh

192 Abdullah Sultani flour production flour Balkh

193 Ayinda Nilgun salt production iodized salt Faryab

194 Gahar Carpentry PVC window Balkh

195 Blour Afghan salt salt Balkh

196 Nasim Sahar production toilet, tissue paper Balkh

197 Hakim jan production Vegetable oil, soap Balkh

198 Almas juice product water, juice Balkh

199 Sadbarg isogam Outdoor stone production Balkh

200 Arash Mazar production carpet, rug Balkh

201 Afghan royal pipe Balkh

202 Tuyoor Balkh production chicken production

203 Kamyaab plastic Plastic foot wears Balkh

204 Pakiza farm milk , yogurt , dough , cheese Balkh

205 Aria Foam panel boards Balkh

206 Kardan Balkh production electric switch board Balkh

207 Nizame wrest production plastic Balkh

208 Hamid Sadat juice manufacturing juice product Balkh

209 Karimi food company macaroni Balkh

210 Khalid Haroon building material building material Balkh

211 Faizi storage flour Balkh

213 Shamal Sharq isogam Outdoor stone Balkh

214 Faiz Mohammad products oil Balkh

215 Ibrahimzada PVC PVC windows Balkh

216 Nasim Sahar production tissue papers Balkh

217 Shamal proofil Construction steel production Balkh

218 Aria cola juice product Herat

219 Shoko Ansar production juice product Herat

220 Milad Wais production pipe Herat

221 Aria Sehat washing liquid shampoo, liquid Herat

222 Rooz food production chocolate, salty snacks Herat

223 Sayed Samad production biscuit Herat

224 Shahin Shahang food production salty snacks Herat

225 Nimat Bahar food production salty snacks Herat

226 Heray Dunya production salty snacks Herat

227 Khuban cola juice production Herat

228 Jahan plastic plastic tools Herat

229 Noor said food production cake Herat

230 Habibqadir food company salty snacks Herat

231 Super cola juice product Herat

42 | P a g e

232 Asghari stone Outdoor stone production Herat

233 Kam food company biscuit Herat

234 Amini food company chocolate, cake Herat

235 Herat outdoor stone closed Herat

236 Harry food company biscuit Herat

237 Tuyoor Haidari slaughter house slaughter house Herat

238 Mandegar production PVC window Herat

239 Ufuq Cable production cable product Herat

240 Afghan Folad Construction steel production Herat

241 Pamir Cola juice product Herat

242 Shiba liquid company Soap Manufacturing Herat

243 Afrooz company plastic Herat

244 Zolal Mowafaq juice product Herat

245 Sadaf Dana production animal food Herat

246 Botheran Sadaat biscuit Herat

247 Lalai Production biscuit Herat

248 Darbaran chocolate chocolate, cake Herat

249 Shokoh Darya chocolate chocolate Herat

250 Azarsan production gas grill Herat