Locations
Afghanistan is emerging from four decades of conflict, a country marked by profound socio-economic scars, exacerbated by severe climate and nature-related shocks like flash floods, droughts, and earthquakes. Food insecurity, fragile livelihoods, and restricted access to essential services have resulted in a ‘polycrisis’.
Afghan women have borne a disproportionate burden of this deepening hardship, as they face growing restrictions to participate in public life, secure work, access social services, or exercise any kind of agency outside of the home.
The startling decline in women’s economic activity, since 2021, reflects this marginalization. Before the Taliban returned to power, female labor force participation stood at 19 percent. This figure dropped significantly in 2021 and continued to decline between 2022-23, as household employment rates for women fell from 11 percent to just 6 percent.
There was a further decline in formal employment, in 2024, and a rise in daily labor and informal employment, which is inherently insecure, poorly paid, and unsafe. Given these factors, the cumulative effect of these restrictions could cost the economy USD 1 billion over the next couple of years.
Amidst this unfolding humanitarian crisis, core resources have allowed UNDP to continue its operations, providing a lifeline to 8 million women across Afghanistan. It has afforded them access to basic services and infrastructure, created jobs, supported Micro, Small, and Medium sized Enterprises (MSMEs), strengthened community resilience against hazards and climate risks (earthquakes, drought, floods), expanded access to renewable energy, and provided livelihood support to farmers transitioning from poppy cultivation.
Today, core funding allows UNDP to deliver integrated solutions and long-lasting results. For example, in 2024, a seed investment of US $4 million unlocked over US $34 million of non-core funding to advance women’s socio-economic empowerment. These investments support almost 80,000 female-led micro and small businesses (MSMEs) nationwide, and have generated nearly 400,000 jobs, mostly for women, and have indirectly benefited over 2.7 million Afghans. Despite the harsh restrictions, community savings and loan groups have further supported over 27,000 women in starting and expanding their businesses, enhancing the economic resilience of their communities.
UNDP’s integrated approach includes the development of digital skills, to empower women to overcome mobility restrictions and effectively market their products. Additionally, the provision of solar power to MSMEs employing women, reduces reliance on expensive, polluting generators, reducing emissions and cutting operational costs. The resulting savings are then reinvested to expand capacity and create more employment for women. The effect of these initiatives is felt in multiple ways.
Crucially, employment has instilled a renewed sense of pride among Afghan women, empowering them and cultivating a sense of belonging and solidarity in their workplaces. The impact ripples well beyond, as women become financially independent they contribute to their families creating a chain of prosperity that revitalizes communities can potential improve the lives of generations to come.
A preliminary assessment of the programme, in 2024, provides evidence of positive impact, with an overall boost in production and a 100 percent increase in income for surveyed women, who benefited from the integrated interventions.
Against the background of the Doha negotiations, UNDP is focused on strengthening local systems to promote women economic empowerment by expanding access to finance.
In collaboration with the First Microfinance Bank (FMFB), UNDP facilitated the issuance of subsidized microcredit to over 2,054 MSMEs, a substantial portion led by women. With the United Nations Capital Development Fund (UNCDF), we launched a pioneering credit guarantee program to back bank loans, aimed at scaling up SMEs. And our initiatives in digital and mobile payments, in collaboration with leading financial technology firms, are reducing transaction times and costs, increasing payment traceability, and enhancing the financial literacy of women, through innovative training platforms that leverage Generative AI.
Afghanistan's socio-economic recovery hinges on women's participation and UNDP is fully committed to continue supporting its women’s economic agency.
As we celebrate UNDP’s 60th Anniversary, we extend our profound gratitude to our #PartnersAtCore for their unwavering support and commitment, which have been instrumental in driving sustainable progress and securing the long-term success of our initiatives. Their dedication is vital as we work towards building a self-sufficient and prosperous Afghanistan.
