A new joint initiative by UNDP and UN Women will expand access to finance for Afghan women entrepreneurs seeking to start and grow their businesses.

The Afghanistan Women’s Fund for Resilient Enterprises (AWFRE) will provide Sharia-compliant financing alongside business development support, including financial and digital literacy training, mentoring, business planning and support to access markets.

An initial joint investment of USD 1.7 million will support around 1,500 women entrepreneurs over the next year, indirectly benefiting more than 14,000 people through stronger businesses, household incomes and economic activity.

The initiative responds to a major financing gap facing Afghan women entrepreneurs. Fewer than seven per cent of women in Afghanistan have a bank account or use mobile money services, leaving many women-led businesses reliant on personal savings, loans from family and friends, or the sale of personal assets to operate and grow.

At the same time, Afghan women are increasingly turning to entrepreneurship to earn an income and support their families. More than 10,000 Afghan women now hold business licences – ten times the number five years ago – while the Afghanistan Chamber of Commerce estimates another 120,000 are trading without licences.

“The challenge for Afghan women entrepreneurs is not a lack of enterprise, but limited access to the finance, skills and networks they need to grow. Through the initiative, UNDP and UN Women are bringing these elements together: Sharia compliant, collateral free financing, practical business support and sustained mentorship to help women strengthen their businesses, build resilience and create more secure livelihoods for themselves and their families,” said Turhan Saleh, UNDP Resident Representative in Afghanistan.

UN Women Special Representative Susan Ferguson said expanding women’s access to finance was critical to enable women-led businesses to grow.

“Afghan women are finding ways to build businesses, despite the many obstacles they face. Expanding access to finance can help women entrepreneurs turn their ideas and skills into stronger businesses, more jobs and greater economic security for their families and communities,” Ms Ferguson said.

UNDP and UN Women are seeking to mobilize an additional USD 10 million to expand the initiative, which would enable another 10,000 women entrepreneurs to access financing and business support, indirectly benefiting an estimated 70,000 people.

By combining access to finance with practical business support, the initiative aims to help women entrepreneurs move beyond subsistence and small-scale businesses, invest in their enterprises, reach new markets and build more sustainable sources of income.

For media inquiries, please contact:

Matthew Duncan
Head of Communications, UNDP Afghanistan
Email: matthew.duncan@undp.org 

Ann-Marie Gabrielle Wilcock
Head of Communications, UN Women Afghanistan
Email: ann-marie.wilcock@unwomen.org