AKF and EU announce €22m partnership to promote economic resilience in Afghanistan

AKF is proud to announce a new partnership with the European Union (EU) to promote inclusive and sustainable economic growth in Afghanistan, reducing dependence on humanitarian aid.

Millions of people in Afghanistan face severe economic challenges. This €22 million initiative will address immediate community needs while building long-term self-reliance and resilience through employment opportunities, skills training, and economic diversification.

Over the next three years, we aim to:

• Directly support 34,200 households and reach 292,544 people indirectly.
• Support women’s livelihoods, with over 26,793 women benefitting directly through tailored training, entrepreneurial support, and financial inclusion.
• Introduce climate-smart solutions like solar-powered irrigation, strengthening 920 farms and establishing 300 greenhouses to boost food security.
• Revive livelihoods in Afghanistan’s cultural heritage sector, providing new opportunities for youth and supporting cultural revitalisation.

“Millions in Afghanistan remain trapped in poverty, heavily reliant on humanitarian aid, with women disproportionately bearing the burden,” stated Veronika Boskovic Pohar, EU Chargée d’Affaires a.i., EU Delegation to Afghanistan. “This initiative supports inclusive and sustainable economic growth, helping communities build self-reliance and reduce dependency on aid. By enhancing employment, income generation, and productivity, it promotes resilient livelihoods, particularly for women and other vulnerable groups, including youth, returnees, and internally displaced people.. The programme also considers the severe impact of climate change in Afghanistan by introducing climate-smart technologies and helping communities withstand climate-induced shocks. Additionally, the EU remains committed to supporting the microfinance sector through Community-Based Savings Groups (CBSGs) under this initiative.”

“We are excited to announce the signing of a new project with the European Union in Afghanistan, further strengthening the longstanding partnership between the EU and the Aga Khan Development Network (AKDN) in the country,” noted Dr. Najmudin Najm, CEO of AKF and AKDN Coordinator, Afghanistan. “This collaboration highlights the EU and AKDN’s shared commitment to supporting Afghanistan, with a focus on creating economic wellbeing and livelihoods development opportunities for some of the most vulnerable people, including women and youth. The initiative will prioritize enhancing local economies and boosting agricultural production, ultimately fostering greater resilience against economic shocks including those triggered by climate change. The project will also play a key role in strengthening skills development in reviving cultural and historic sites especially amongst youth and adolescents.”

The programme will be implemented alongside Accelerate Prosperity and the Aga Khan Trust for Culture and marks another milestone in AKF’s commitment to sustainable development in Afghanistan.