Clear strategy needed to attract investment

Monitoring Desk

KABUL: Businessmen have said that along with the lack of security, the absence of a clear strategy to attract investment is also to blame for the economic recession in Afghanistan. They are firm in the belief that government needs to draw up a solid strategy to attract investors.

Many businessmen have painted a gloomy picture, especially in terms of bringing in foreign investment – despite government’s efforts to this effect. Many economic analysts said insecurity, lack of regulations in support of domestic and foreign investors, the lack of infrastructure, and the shortage of electricity and land are among key challenges faced by investors. They say that there is so far no clear framework to attract investment in order to grow the commercial sector in the country. “Although, there is interest for investment in the country, so far government does not even have a clear vision for sustaining investments and improving the status of investments in the country,” Azarakhsh Hafizi, a global affairs business expert, said.

The Afghanistan Chamber of Commerce and Industry (ACCI) believe that government has not done enough to solve the challenges around attracting investors. The spokesman for the ACCI Siyam Psarlai, said problems faced by current investors goes unresolved. “Currently there is no law for industrial parks, and alongside insecurity, the lack of land and electricity for investors is still among the major challenges,” says Psarlai a spokesman for ACCI.

Meanwhile, the Ministry of Commerce and Industry Musafir Quqandi, said the ministry has implemented plans for investment development in the country. Quqandi, said in addition to reviewing the country’s investment law, the ministry has also provided support for domestic products.

“The government has so far done a lot to improve the status of current investments, as well as to provide new investment opportunities; it has also revised the Investment Law,” said Quqandi, a spokesman for the Ministry of Commerce and Industry.

So far, foreign investors, including Gulf traders, and businessmen from many Asian and European countries, have visited Afghanistan to explore investment opportunities – but little has come about after these visits. Considering current problems, many experts have called on government to clarify its vision for short-term and long-term investment attraction.