Afghanistan Industry Sectors

Afghanistan’s industry sectors are slowly emerging, after more than three decades of civil fighting and war. Most of the nation’s factories and cottage industries were rendered inoperative and growth has been hampered since. However, after the war, industrial development has been slow and limited to cotton textile production and agriculture. Although the present government has partnered with India to rebuild its urban infrastructure and telecommunications, the process has been slow due to continued acts of terrorism and civil war.

Afghanistan’s industry sectors are slowly emerging, after more than three decades of civil fighting and war. Most of the nation’s factories and cottage industries were rendered inoperative and growth has been hampered since. However, after the war, industrial development has been slow and limited to cotton textile production and agriculture. Although the present government has partnered with India to rebuild its urban infrastructure and telecommunications, the process has been slow due to continued acts of terrorism and civil war. Afghanistan in the 2000s had industries that included textiles, soap, furniture, fertilizer, cement, natural gas and copper.[br] 

Afghanistan Industry Sectors, Afghanistan Industries: Priority Areas

 

Agriculture: Agriculture remains the primary means of livelihood in Afghanistan, generating more than 50% of the country’s GDP. There are more than one million farms in Afghanistan that contribute much to regional development and related private businesses. Packaging and processing of agricultural products are the areas in which the Afghan people can invest. Production of machinery for the agro-business and agro-processing industries is another lucrative area where there is a potential for procurement of new machines to replace the Soviet-era ones. Demand for new machinery for grain cleaning, tractor machinery and ploughs are expected to shape the agriculture sector in the long term.

 

Construction equipment: Due to reconstruction initiatives in the nation, demand for state-of-the-art equipment by both local and state construction companies will push the demand for procurement of construction equipment. A new market could potentially take over the reins from international organizations on the pricing front.[br]

 

Telecommunications: As of 2010, four major telecom providers have invested more than $1 billion in developing comprehensive telecom infrastructure in the nation. Afghanistan’s mobile phone industry has exploded from zero users in 2002 to more than 5 million by 2010. Due to the competition, a SIM card today costs $1 and handsets as less as $10. The number of cell phone users is expected to more than double by 2011.

 

Manufacturing: Due to a huge pool of unemployed resources, the need to create a labor-intensive, cost-effective manufacturing sector will soon be felt. As labor costs in countries like India and China are increasing steadily, Afghanistan presents a low cost option for many organizations looking to build manufacturing facilities in the country. Manufacturing of low-end products, such as toilet paper, plastic ware, footwear, clothing, tires and tubes, soaps and detergents, and blankets can offer a viable area of investment.