Kabul city is potentially one of the region’s major business hubs which can open many

doors for international investment and cooperation.

AFGHANISTAN KABUL MOHAMMAD ASHRAF GHANI

NATIONAL UNITY GOVERNMENT

In the 11 th Silk Road Mayors Forum (SRMF) in Iran last September, the World Citizens
Organisation (WCO) and members of the SRMF unanimously selected the historic Kabul
city to host the next SRMF on 20 October 2017. This rightfully recognises Afghanistan’s
ancient status as the heir of the Silk Road civilisation and a regional intersection that
connects people, businesses, cultures, civilisations, and consequently invites friendship
and cooperation. It also demonstrates increased international confidence in the
administrative capacity of the Afghan government under President Mohammad Ashraf
Ghani and Chief Executive Abdullah Abdullah.

Thanks to the ongoing implementation of reforms undertaken by the National Unity

Government of Afghanistan, Kabul Municipality has been transformed from a decaying
institution to one that is led by a group of well-educated and dedicated young
professionals. Their merit-based appointment to positions of complex responsibility has
resulted in continued reduction of corrupt practices that used to permeate the
municipality, as well as in designing and building roads and municipal facilities across
the Kabul city.

The Kabul Municipality has been

transformed from a decaying institution
to one that is led by a group of well-
 educated and dedicated young
professionals.

In turn, the reform and results-oriented leadership of the municipality has lost no time in
establishing contacts and working relationships with municipalities and partner
organisations across the region and the world. This has enabled the municipality to regain
public trust and respect, while building confidence with its counterparts abroad to initiate
win-win projects for support and co-implementation.

The SRMF in Kabul will bring together mayors, diplomats and representatives from the
countries on the Silk Road and major aid agencies to discuss issues of mutual interest,
including financial, diplomatic, and cultural affairs. It too would allow them an
opportunity to exchange views and lessons to be learned from their relevant experience in
municipal management, city planning, and opening their cities and countries to broader
tourism and business opportunities.

Aside from these exchanges, the Forum will give participants an opportunity to see for
themselves the situation in Afghanistan. Unfortunately, terrorists and their external
sponsor often propagate against the hard-earned gains of the Afghan people and feed the
global public misinformation about Afghanistan. However, since 2001, the Afghan people
have come a long way, making notable progress towards the long-term institutionalisation
of peace, pluralism, and prosperity, in close partnership with the international community.

To consolidate their hard-earned gains, the Afghan people are heartened by the United
States’ new conditions-based strategy, which President Donald Trump recently
announced, to secure peace and prosperity in Afghanistan. Success in this common
endeavour will not only allow the country to realise its massive natural resources
potential for revenue generation and economic growth, but also enable Afghanistan to
serve as the roundabout of the modern Silk Road initiatives to create and spread
prosperity across Eurasia.

“As we look to our neighbours in the South and Central Asia, we are simultaneously
strengthening national, global and regional connectivity,” President Ghani told world
leaders in the 72 nd Session of the United Nations General Assembly in late September.
He added: “Afghanistan will again become a multi-faceted hub in the 21st century — for
transport, energy, water and mining — for the benefit of the entire region’s economic
prosperity and security.” The President highlighted the progress Afghanistan has already
been making: “Transmission lines for the Central Asia-South Asia power project are
under construction. The Turkmen railway has reached our border. The TAPI natural gas
pipeline is under construction.”

Afghanistan will again become a multi-

faceted hub in the 21st century — for
transport, energy, water and mining —
for the benefit of the entire region’s
economic prosperity and security. —
Mohammad Ashraf Ghani

In addition to networking, the Forum will allow participants to learn further about the
above projects and business opportunities associated with them and Afghanistan’s
numerous virgin markets. For example, even though the Afghan government has
registered more than $10.4 billion as initial capital for investments since 2002, the actual
investments could reach $25 to $30 billion in the following key sectors: agriculture,
mining, manufacturing, services, construction, and energy.

Last year, the Afghan government hosted a conference on “Invest in Afghanistan” where
it drew the attention of domestic and foreign business representatives to the following
potential investment opportunities in Afghanistan:

85–90 per cent of the Afghan population lives in rural areas. They are engaged in the
agriculture sector, which plays a vital role in the livelihood of 76 percent of the total
population.

More than $300 million annually flows out of Afghanistan in pursuit of medical
treatment abroad. At the same time, more than $800 million worth of pharmaceuticals is
annually imported to Afghanistan.

Afghanistan currently produces 600 million watts of hydropower electricity. But there is
a huge potential to produce up to 23,000 MW of hydropower electricity.

In the past decade, Afghanistan has experienced unprecedented growth in its

construction industry. The construction sector has contributed 7–10 per cent to GDP in
recent years.
According to the US Geographical Survey, Afghanistan possesses minerals worth $1
trillion, whose value the Afghan government estimates at $3 trillion.

Public procurement forms 19 per cent of GDP and 50 per cent of the national budget.

More than 90 per cent of consumer goods in Afghanistan are imported from regional
countries and beyond.

All told, Kabul city is potentially one of the region’s major, dynamic business hubs with
several million consumers, which can open many doors for international investment and
cooperation across the sectors pointed out above. President Ghani will open the 2017 Silk
Road Mayors Forum, as the Kabul Municipality, supported by the rest of the Afghan
government, looks forward to welcoming and hosting mayors from countries on the Silk
Road and delegates from the private sector and aid organisations soon.

A Visiting Fellow at Observer Research Foundation (ORF) and the Afghan Institute for
Strategic Studies (AISS), M. Ashraf Haidari is the Director-General of Policy & Strategy
of the Ministry of Foreign Affairs of Afghanistan, and formerly served as the country’s
Deputy Chief of Mission to India. Prior to this, he was Afghanistan’s Deputy Assistant
National Security Advisor, as well as Afghan Chargé d’Affaires to the United States. He
tweets @MAshrafHaidari.

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