FAO and World Bank launch matching grants to support Afghan agribusinesses, create jobs and boost rural economies

Kabul – Five Afghan agribusinesses have been selected as the first recipients of co-investment matching grants under an initiative implemented by the Food and Agriculture Organization of the United Nations (FAO) and funded by the World Bank Group aimed at revitalizing Afghanistan’s agricultural economy through private sector-led growth, job creation and stronger agricultural value chains. 

The selected enterprises — involved in seed production, saffron, dairy, soybean processing and food manufacturing across Herat, Kapisa, Kunduz, Logar and Takhar provinces — will receive grant financing alongside their own matching co-investment contributions to expand operations, improve processing capacity, create jobs and strengthen links between farmers and markets. Investments include a soybean oil refining line in Kapisa, solar-powered dairy operations in Takhar and saffron processing equipment in Kunduz. These investments are expected to generate both direct and indirect jobs across production, processing, logistics and marketing activities. Three of the five supported enterprises are women-led. 

In addition to financial support, these businesses will receive tailored technical assistance through a Business Development Services (BDS) provider to strengthen business planning, investment management, workforce development and operational growth. 

Implemented by the FAO with funding from the World Bank, the Emergency Food Security Project (EFSP) matching grant scheme is designed to strengthen the role of small and medium-sized Afghan agribusinesses in driving economic growth in rural areas, creating jobs and market opportunities for farmers, particularly women and youth, and improving the functioning of agricultural value chains. These first five businesses are being supported under Window 1 of the programme, which focuses small business, with an emphasis on women-led, early-stage enterprises and small agri-SMEs. Other funding windows will expand support to larger and export-oriented businesses with greater potential for employment generation and value addition. 

“Across Afghanistan, farmers are still too often cut off from markets. What we’re doing here is supporting the businesses that can help change that,” said Richard Trenchard, FAO Representative in Afghanistan. “These enterprises are already investing in their own growth. Our role, together with the World Bank, is to help them scale up, reach more farmers, create jobs in rural communities and build stronger connections between production and markets. That is how more resilient and inclusive rural economies are built.” 

Agriculture forms the backbone of Afghanistan’s economy, supporting the livelihoods of around 80 percent of the population. Notably, more than half of Afghan women who participate in the labor force are engaged in the sector. Strengthening inclusive and competitive agribusinesses is therefore central to improving food security, nutrition, rural employment and economic recovery.  

At a time when humanitarian funding is declining while food insecurity and malnutrition remain widespread, sustained investments in the private sector and market systems are critical. Such investments will help transform Afghanistan’s agrifood system, create jobs and income opportunities, support farming communities, stimulate local economies and build more food-secure and sustainable futures.