KABUL: The Afghan Chamber of Commerce and Industries (ACCI) this week released results of its third review of Afghanistan’s business climate and found businessmen were generally not happy with the current economic status.
The ACCI’s review covered the past nine months and found that small and medium enterprises are struggling financially.
Studies involved employees and managers of 400 different business, in the construction, production, trade, services and agriculture sectors.
“The small and medium-sized companies are the most vulnerable and they feel every change … Only around 23 percent of these companies are happy with the current business climate,” said the deputy head of the ACCI, Atiqullah Nusrat.
The study found that the business climate in Kabul, Kandahar and Balkh provinces has taken a knock, while in Nangarhar and Herat businesses are doing better.
The lack of infrastructure, corruption, a lack of access to natural resources, shortage of land, erratic electricity supply and complications within business laws are key challenges investors face, said the ACCI.
“Corruption is a dangerous threat to Afghanistan’s economic growth and it has not been tackled properly, but has increased. The other problem is strict laws and every day a new law comes into practice,” said Khan Jan Alokozay, ACCI’s deputy head.
According to the findings of the ACCI’s study, production, services and trade companies face serious challenges and are having to lay off staff almost on a daily basis. However, the construction and agriculture sector appear to be more stable.
Homayoun Rasa, the minister of commerce and industries, meanwhile said last year they amended 27 business laws and a further 17 will be amended this year.
Rasa also said this year the import and export sector will be standardized in terms of international norms.
“We are committed to finalizing standardization this year and next year of all the import and export systems,” he said.
