Afghanistan, 23 December 2024 - The partnership between the Aga Khan Foundation (AKF) and the European Union (EU) will promote inclusive and sustainable economic growth in Afghanistan, reducing dependence on humanitarian aid.

Millions of people in Afghanistan face severe economic challenges. This €22 million initiative will address immediate community needs while building long-term self-reliance and resilience through employment opportunities, skills training and economic diversification.

Over the next three years, the initiative aims to:

• directly support 34,200 households and reach more than 292,500 people indirectly;
• support women’s livelihoods, with almost 26,800 women benefitting directly through tailored training, entrepreneurial support and financial inclusion;
• introduce climate-smart solutions like solar-powered irrigation, strengthening 920 farms and establishing 300 greenhouses to boost food security;
• revive livelihoods in Afghanistan’s cultural heritage sector, providing new opportunities for youth and supporting cultural revitalisation.

“Millions in Afghanistan remain trapped in poverty, heavily reliant on humanitarian aid, with women disproportionately bearing the burden,” said Veronika Boskovic Pohar, EU Chargée d’Affaires a.i., EU Delegation to Afghanistan. “This initiative supports inclusive and sustainable economic growth, helping communities build self-reliance and reduce dependency on aid. By enhancing employment, income generation, and productivity, it promotes resilient livelihoods, particularly for women and other vulnerable groups, including youth, returnees and internally displaced people. The programme also considers the severe impact of climate change in Afghanistan by introducing climate-smart technologies and helping communities withstand climate-induced shocks. Additionally, the EU remains committed to supporting the microfinance sector through Community-Based Savings Groups (CBSGs) under this initiative.”

“We are excited to announce the signing of a new project with the European Union in Afghanistan, further strengthening the longstanding partnership between the EU and AKDN in the country,” noted Dr Najmudin Najm, CEO of AKF and AKDN Coordinator, Afghanistan. “This collaboration highlights the EU and AKDN’s shared commitment to supporting Afghanistan, with a focus on creating economic wellbeing and livelihood development opportunities for some of the most vulnerable people, including women and youth. The initiative will prioritise enhancing local economies and boosting agricultural production, ultimately fostering greater resilience against economic shocks, including those triggered by climate change. The project will also play a key role in strengthening skills development in reviving cultural and historic sites, especially amongst youth and adolescents.”

The programme will be implemented alongside Accelerate Prosperity and the Aga Khan Trust for Culture. It marks another milestone in AKDN’s commitment to sustainable development in Afghanistan.

This project is funded by the EU.