T HE W ORLD B ANK Eastern Region Economic Growth and Investment Conference – Jalalabd March 28.

Bank (IBRD + IDA) MIGA IFC All are active in Afghanistan and all have been engaged in projects and assistance designed to help the private sector.

Lending to Government Possible to lend to private sector under certain conditions Key assistance to date includes Enterprise Surveys 2005 & 2008 Development of industrial park in Jalalabad Support to Central Bank to increase access to finance Support to MISFA to assist operational stability Assistance to telecoms Assistance to Ministry of Mines Investment in roads Investment in customs and boarder controls

1. Weak policy enforcement 2. Poor provision of electricity 3. Crime, theft and disorder 4. Corruption 5. Access to land 6. Access to finance However variation in severity of constraints faced from city to city…

Access to land (39%) Policy enforcement (33%) Electricity (75%) Access to finance (32%) Corruption (23%)

i. Poor provision of electricity ii. Crime, Theft, & Disorder iii. Policy enforcement iv. Corruption v. Access to land vi. Access to finance

Objectives:  Enhance the provision of the land and infrastructural services for enterprise development,  Enhance the capacity of government agencies to analyze PSD issues, develop and implement PSD related strategies, policies and programs,  Enhance the capacity of government agencies to promote Afghanistan as an investment destination and provide investment facilities services,

i.Development of Industrial park in Hissar i Shahi of Nangarhar province, a) Size of the park: 126 hectares b) Number of plots: 163 c) Sectors: light engineering, food processing, lather garments, and carpet washing and finishing. ii.Institutional development for PSD a) Industrial Parks Development Department (IPDD), b) Policy and Research Unit (PRU), AISA c) Private Sector Development Department (PSDD), MoCI

M ICROFINANCE PROGRAM IN AFGHANISTAN  Managing by the World Bank,  Financial resources : ARTF and the World Bank,  Coverage: 26 provinces (130 districts),  Total active clients: ,  Total active borrowers: ,  Direct employment: 4500,  No of loans in eastern region: 85233,  Amount of loans in eastern region: $ 31.3 million,  Sectors: Agriculture, Trade and Services, Manufacturing and Handicraft, Housing and Others,

National PSD Program Local Economic Development Office Firm-level Matching Grants Fund Urban Development

2004 IFC investment portfolio = US$8 million in two companies 2010 IFC investment portfolio = US$90 million in 6 companies Additionally, IFC’s Advisory Services are helping increase access to finance, contributing to SME development and improving the business enabling environment through various technical assistance projects.

I N S U R I N G I N V E S T M E N T S E N S U R I N G O P P O R T U N I T I E S

War and civil disturbance cover protects against losses arising from: damage/disappearance of tangible assets due to war or civil disturbance (including revolution, sabotage, and terrorism) prolonged business interruption Expropriation cover protects against losses arising from: nationalization and confiscation creeping expropriation, partial expropriation (limited coverage) Breach of contract cover protects against government (including sub-sovereign) actions resulting in: breach or repudiation of an agreement with the investor and non-enforcement of an arbitration award