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UNDP and UN Women Launch $1.7 Million Fund for Afghan Women Entrepreneurs

Prime Highlights-

  • UNDP and UN Women launched the Afghanistan Women’s Fund for Resilient Enterprises with $1.7 million to support about 1,500 women entrepreneurs.
  • The fund offers Shariah-compliant, collateral-free financing plus training, mentoring, and market access to help Afghan women-owned businesses grow.

Key Facts-

  • The initial investment should indirectly benefit more than 14,000 people through stronger businesses and higher household incomes.
  • UNDP and UN Women seek another $10 million to reach 10,000 more women entrepreneurs.

Background-

The United Nations Development Programme (UNDP) and UN Women have launched a new fund to give Afghan women entrepreneurs better access to financing and business support. The first phase aims to assist about 1,500 women.

The Afghanistan Women’s Fund for Resilient Enterprises, known as AWFRE, will offer Shariah-compliant financing that needs no collateral. It also brings business services, including financial and digital literacy training, mentoring, business planning, and help reaching markets, the UNDP said.

The partners will invest $1.7 million at the start. The UNDP expects the money to support about 1,500 women and indirectly benefit more than 14,000 people through stronger businesses, higher household incomes, and wider economic activity.

The fund targets a large financing gap. Fewer than 7% of women in Afghanistan have a bank account or use mobile money, so many women-owned businesses rely on personal savings, loans from relatives and friends, or the sale of personal assets.

More women are choosing entrepreneurship to earn income and support their families. More than 10,000 Afghan women now hold business licenses, and the Afghanistan Chamber of Commerce estimates another 120,000 run businesses without licenses.

Turhan Saleh, the UNDP resident representative in Afghanistan, said women entrepreneurs face limited access to financing, skills, and business networks. Susan Ferguson, UN Women Special Representative, said better access to financing helps women-led businesses grow and builds economic security.

The two agencies now seek another $10 million to reach 10,000 more women entrepreneurs and indirectly benefit an estimated 70,000 people.