TAFA support of marble

sector: achievements,

results andrecommendations

Kabul, March 2013

TAFA- EPAA Survey on Marble Companies in Afghanistan

In order to find out facts about the marble Sector Development/Challenges and Opportunities in Afghanistan, TAFA in coordination with EPAA conducted a survey in Kabul, Herat and a telephonic survey of marble in Nangarhar province.

According to AISA 2012 marble sector analysis report approximately 105 companies are working in this sector

TAFA- EPAA Survey on Marble Companies

Findings During this survey totally 22

out of 105 marble companies were visited as follows:

11 marble companies in Kabul 7 marble companies in Herat 4 marble companies in

Nangarhar ( by telephone)

TAFA- EPAA Survey on Marble Companies

Findings

In this sector , approximately 6300 persons are employed. I

TAFA- EPAA Survey on Marble Companies

Findings

5 out of the 22 visited companies had exports of processed marble

4 of the visited companies had exports of unprocessed marble

14 companies supplied marble to domestic markets

TAFA- EPAA Survey on Marble CompaniesFindings

The processed marble export was mainly to: Iran, Pakistan, China, Italy, Turkey and India The unprocessed marble export was mainly to: UAE, Pakistan, China, Italy, Turkey and India

Employee-Labor Comparison (22 surveyed Companies-Entire Industry

Labor Percentage in Processing and Extraction ( 22 Survey Companies)

Extraction Processed

126 824

Domestic Sales Vs Export of 22 Surveyed Companies

Domestic Sales Exports

sqm443400 29000 sqm

Total Production of 22 Surveyed Companies

Challenge/ Problems of the Marble Sector:o High Rate of royalty at the quarrieso Huge  import of  low quality marble from

neighboring countrieso Imposition of tax on processed marble o Lack of security at the quarries

Challenge/ Problems of the Marble Sectoro Lack of attention and encouragement of the

relevant authorities to marble traderso Lack of long-term loans and credit systemo Problems in bidding o Lack of required advanced machinery

Challenge/ Problems of the Marble Sector

o Lack of required facilities for the development of marble sector such as:

- Electricity - Transportation- Access roads- space for processing

Recommendations

- According to the traders, to overcome these challenges and problems, the following steps need to be taken:

• In this sector , approximately 6300 persons are employed, if the government supports the marble sector, the number of employees will substantially increase

• Establishment of understanding between the private sector and relevant authorities

• Strong support of the government from marble sector

Recommendations

• Raising tax on importing marble from neighboring countries

• Provision of loans and banking guarantees to the marble traders

• Facilitating opportunity for participation of traders in the world marble exhibitions

• Decrease in the current royalty rate • Allocation of land for the processing of

marble to the marble sector

Recommendations

• Establishment of coordination among the relevant authorities for the purpose of marble sector development

• Establishment of a unified policy and strategy for the marble development and export

Export Growth Trend as a result 10%, 20% and 50% increase