Improving Economies for Stronger Communities (IESC)
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Assistance in Building Afghanistan by Developing Enterprises
Approach
The program fostered business innovation, expanded the role of women and youth in business, and emphasized economic growth that benefited the poor.
Small and medium enterprise investment partnerships
ABADE provided capital to small and medium enterprises through a competitive application process. Businesses were required to invest at least twice the amount of USAID’s contribution, but the average was much higher—6:1. ABADE partnered with a manufacturer of hospital equipment to invest in a medical-grade cotton production line.
Innovation partnerships
To stimulate innovation, the program provided capital for new business ideas, also through a competitive application process. The Afghan business had to invest an amount at least equal to ABADE’s contribution. The program invested in a woman-owned vermiculture business (rich, high-quality compost made by worms)—the first of its kind in Afghanistan.
Technical and business advisory services
In addition to capital investment, ABADE delivered technical and business advice to its small and medium enterprise partners and other businesses in areas of accounting, marketing, quality standards, and more.
Business enabling environment
Working with the Ministry of Commerce and Industries to improve Afghanistan’s business environment, ABADE identified and addressed policies and regulations that impact competition.
Summary
The Assistance in Building Afghanistan by Developing Enterprises Program (ABADE) strengthened private businesses to grow the economy and create jobs. ABADE, which means “to develop” in Dari, partnered with Afghan-owned small and medium enterprises to invest in upgrading their equipment or adopting new technologies to modernize or expand production. These investment partnerships leveraged almost $300 million in private investment.
Program details
- Funder: USAID through the Volunteers for Economic Growth Alliance
- Duration: 2012 to 2017
- Award: $105 million
Results
- 298 small and medium enterprise and innovation alliances formed
- $293 million in private sector investments created
- 245% increase in sales at investment partner businesses
- Six business constraints addressed
- 17,777 full-time equivalent jobs created