27 January 2010
The private sector has a fundamental role to play in rebuilding Afghanistan, and the UK is helping to create a better business environment, International Development Minister, Gareth Thomas said today.
Speaking alongside the Afghan Minister of Finance, Dr Omar Zakhilwal, at an investment seminar for representatives from UK and Afghan business, Gareth Thomas highlighted the work that the UK government is doing with the Government of Afghanistan to strengthen the private sector environment.
With UK support, Afghanistan’s domestic revenues have more than quadrupled in the last five years and, despite the recession, are continuing to rise.
UK firms were encouraged to think beyond supplying the security sector to see the business opportunities in sectors such as health, infrastructure, agriculture and mining.
Several UK companies including Crown Agents and Mott MacDonald, are already working successfully in Afghanistan and are helping to bring much needed employment opportunities and development to the country.
Gareth Thomas, Minister for International Development, said:
“We are building a trade relationship with Afghanistan virtually from scratch and educating British companies about how to invest in the country is an important part of that.
“There is no doubt that Afghanistan is a challenging environment to do business in but there are many opportunities for UK companies who can bring the vital skills and experience that Afghanistan needs.
“The UK and other donor countries are supporting reconstruction and development in Afghanistan which is helping to boost the country’s economy.
“The next step will be to introduce Afghanistan to the world economy, which will be crucial to the country’s development.”
Over the period 2002 to 2008 Afghanistan’s economy grew at an average rate of 11 per cent. This year it should reach 15 per cent at a time when most economies are emerging from recession.
In a recent survey of 1,000 Afghan business funded by the Department for International Development, over three quarters said they planned to expand.
The industrial and service sectors have seen revenues grow by an average of 220 per cent over the last five years; and with UK support, Afghanistan’s domestic revenues are likely to increase more than 5-fold from $200m in 2003/04 to well over $1 billion this year.
The Business and Investment seminar is part of the London Conference on Afghanistan taking place this week.
Representatives of the World Bank and the Afghanistan Investment Support Agency were also at the event.
The seminar was addressed by the Afghan Minister of Finance, Dr Omar Zakhilwal, who will also address Thursday’s London Conference on Afghanistan. There he will set out how the Government of Afghanistan will accelerate the momentum of economic reform, to help bring greater stability to Afghanistan.
Contact James Clements at UK Trade & Investment press office on 020 7215 2491 or e-mail james.clements@ukti.gsi.gov.uk
or
Laura McCleary DFID press office 020 7023 1912
1. For the latest press releases from UK Trade & Investment register on our on-line newsroom www.newsroom.uktradeinvest.gov.uk. 2. UK Trade & Investment is the government organisation that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high quality investment to the UK’s dynamic economy – acknowledged as Europe’s best place from which to succeed in global business. UK Trade & Investment offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage. For further information please visit www.uktradeinvest.gov.uk or telephone +44 (0)20 7215 8000.3. Information on the UK’s role in Afghanistan and the London Conference can be found at http://afghanistan.hmg.gov.uk/en/
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