Active Portfolio Investment Projects

Citizens’ Charter and Social Inclusion

Project Title:
Rural Enterprise Development Program
Grant Amount:
$39.2 million (ARTF Grant: $10.97; IDA: $28.2 million)
Approval Date:
March 9, 2010
Closing Date:
31 Dec, 2015

Project Objective:

The development objective of the Rural Enterprise Development Program is to improve employment opportunities and income of rural men and women, and sustainability of targeted local enterprises.

Program Summary

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Over 75% of the people of Afghanistan live in rural areas where agriculture is the primary activity and contributes about one third of the GDP (excluding the opium economy). However, poor governance, weak factor markets, inadequate marketing infrastructure and business development services, and poor post-harvest practices are limiting the economic development potential of this sector and constraining on-farm and non-farm employment opportunities, thus perpetuating poverty in the rural areas. The following are the key issues and challenges: (a) Poverty and Vulnerability; (b) Economic Slowdown and Increasing Insecurity; (c) Spread of Opium Poppy; (d) Weak Institutions; (e) Lack of Access to Finance and Poorly Functioning Factor Markets; and (f) Shortage of Business Expertise.

The Afghanistan Rural Enterprise Development Project (AREDP) seeks to enhance the participation of the rural poor in economic activities by supporting them through business development services, access to finance, and improving market linkages and value chains. The project is supporting the establishment of 13,000 Savings Groups (SGs), 6,500 Enterprise Groups (EGs) and 1,300 Village and Savings Loan Associations.


  1.  40% of the Enterprises Enterprises include EGs, SMEs, micro enterprises and individual entrepreneurs  will have increased their net revenues, by at least 20%. 35% of these will be female Enterprise
  2. At least 20% of participating enterprises will have increased direct and/or indirect employment by at least 30%; Of these at least 35% will be women
  3. Number of direct beneficiaries of which 35 % are female
  4. At least 60% of project beneficiaries have access to financial services
  5. 40% of enterprises Enterprises include EGs, SMEs, micro enterprises and individual entrepreneurs  supported by the Project will still be operating 2 years after start-up. At least 35% of these will be female Enterprises.