Islamic Republic of Afghanistan Ministry of Agriculture, Irrigation and Livestock INVESTMENT OPPORTUNITIES IN AFGHANISTAN'S AGRICULTURE SECTOR 2012 - 2013 Private Sector Development Directorate November 2012 Apples on a farm in Kabul province This brochure was published on the occasion of the Kabul International Agfair, which was held on November 7-9, 2012. Its purpose is to provide a brief overview of investment opportunities to AgFair participants, as well as to all other interested investors. For additional information, please contact the Private Sector Development Directorate at: [email protected] Table of Contents Introductory Words - H.E. Minister Rahimi 3 Welcome to Investors - Abdul Qayoom Bassam, Private Sector Development Directorate Directo 5 Arazi - Afghanistan Land Authority 7 AISA - Afghanistan Investment Support Agency 9 Irrigation Sector 11 Rice Mill Processing and Marketing East/Northern Regions 14 Fresh Fruit Processing - Eastern Region 15 Farm Machinery Manufacturing 16 Saffron Processing and Marketing in Herat 17 Automated Packaging Plant in Kabul 18 Livestock By-Products 19 Cashmere Production 20 Fruit Juice Processing in Kabul 21 Tomato Paste Processing and Marketing in the Northern Region 23 Cold Storage Facility in Kabul 24 Edible Oil Processing and Packaging in Balkh Province 25 AgFairs as a Networking Opportunity 26 2 Ministry of Agriculture, Irrigation and Livestock Introductory Words of H.E. Minister Mohammad Asif Rahimi Respected Readers and Visitors to the Kabul International AgFair, it is a pleasure to present you with this brochure which provides up-to-date information on investment opportunities in Afghanistan's agricultural sector. Being one of the fastest growing sectors of the Afghan economy, there is no doubt that agriculture provides almost inexhaustible opportunities for investment. The purpose of this booklet is to provide you with information on already approved projects so that investors wanting to take immediate action can do so. The Ministry of Agriculture, Irrigation and Livestock is committed to providing valuable support to Afghan farmers and herders not only through activities related to increased production and productivity but also through facilitating access to agribusiness markets for our products. 3 Investment Opportunities in Afghanistan's Agriculture Sector MISSION OF THE MINISTRY To restore Afghanistan's licit agricultural economy through increasing production and productivity, natural resource management, improved physical infrastructure and market development. AgFairs, especially those international in nature, are certainly one of the most effective mechanisms to build connections between agricultural producers and traders, thereby contributing to our strategic goals such as: Increase of agriculture production and productivity, economic regeneration and programme support, and change management which encompass three of the four key programs defined in the National Agriculture Development Framework. We are advancing our strategic goals through concrete organizational improvements within the Ministry. The Private Sector Development Directorate has been reorganised and we are committed to further strengthening, particularly regarding capacity building. It is my sincere hope that the Private Sector Development Directorate will be a focal point within this Ministry where entrepreneurs are linked to farmers and herders in a way that is mutually beneficial for all involved. Mohammad Asif Rahimi, Minister Ministry of Agriculture, Irrigation and Livestock 4 Ministry of Agriculture, Irrigation and Livestock Private Sector Development Directorate, a Service for Agribusiness Entrepreneurs Dear Readers, Entrepreneurs and Visitors of the Kabul International AgFair, it is my pleasure to welcome you on behalf of the Private Sector Development Directorate (PSDD) and AgFair team of the Ministry of Agriculture, Irrigation and Livestock. This year we are hosting the eight International AgFair in Kabul which we hope will produce effective linkages between Afghan agricultural producers, retailers and traders, both domestic and international. In order to provide sufficient information for potential investors in the agriculture sector seeking immediate business opportunities, we have prepared this brochure which contains up-to-date information on investment opportunities. The Private Sector Development Directorate's vision over the next five years, is to create a dynamic partnership with Afghanistan's agribusiness sector to expand the competitiveness of Afghanistan's agricultural products. The Directorate will achieve its vision by collaborating with all MAIL Directorates and the agribusiness sector to create an enabling environment for producers and traders to increase efficiency and expand agricultural production and exports. An enabling environment for agribusiness development will be created through: n Formulating and implementing consistent polices that directly increase agribusiness competitiveness; 5 Investment Opportunities in Afghanistan's Agriculture Sector n Directing future public sector and donor investments in market infrastructure to sites within the MAIL agricultural development regions that have the highest potential for increased competitiveness; n Developing and maintaining a new public-private partnership for acquiring and disseminating appropriate market development information throughout Afghanistan's key value chains; and n Sustaining public-private sector engagement to identify and support needed agribusiness policy reforms and public sector support for agriculture. PSDD will provide support to agribusiness management both to existing organizations to leverage the capacity they already have with management, planning and marketing technical assistance, and to new companies. In order to promote increased growth in the agribusiness sector, PSDD will also support the formation of new enterprises and organizations, including associations and cooperatives. While associations are not legally permitted to engage in commercial activities, they serve an important function in gathering stakeholders of production, processing, trading and retailing and providing a forum for the development of market linkages and advocacy. The Private Sector Development Directorate is committed to providing valuable information and high quality service through its Agribusiness centres to all entrepreneurs seeking good business opportunities and contributing at the same time to the development of the Afghan agriculture sector. For information, please contact us at the following addresses: [email protected] [email protected] With respect, On behalf of Private Sector Development Directorate Team Abdul Qayoom Bassam, Director 6 Ministry of Agriculture, Irrigation and Livestock Arazi - Afghanistan Land Authority „We want to provide investors with an international-class service to lease government land through a simplified, transparent, 'one-stop-shop.' Arazi, our new land-lease agency, lease land for farming, grazing, factories and other agribusiness. They plan to offer 25,000 more hectares every year, including a new agricultural industrial park adjacent to Kabul International Airport”. H.E. Mohammad Asif Rahimi, Minister Afghanistan Land Authority (Arazi) is an executive agency within Ministry of Agriculture, Irrigation and Livestock, whose purpose is to remove major economic constraints, by improving access to governmental lands for commercial activities. Arazi is a single reference point for both domestic and international investors, interested to invest in any kind of legal activities on government owned land in Afghanistan. The mandate of this authority is to coordinate its activities with the Afghan government, line ministries, donors and private sector organizations to ensure that land needed for productive investment is readily available throughout the country. 7 Investment Opportunities in Afghanistan's Agriculture Sector One Stop Shop for Investment Land leased to a telecom company Investing on land is a sustainable opportunity for individuals and private sector. Arazi is the only authorized entity to provide lease services to investors for different commercial proposes such as: telecommunication, agriculture and livestock, industries and commercial, public services, etc. Arazi has established an easy and very simple system of leasing procedures, which has reduced the land leasing process from 52 steps to 9 steps. Since establishment of Arazi, about 1100 land lease contracts covering 12,596 hectares of land have been signed with individual investors and private sector entities for different commercial purposes, which have led to 436, 8 millions USD investment and more than 10,000 employment opportunities. Contacts: For additional information, please contact Mr. Arif Hakimy, phone: +93 794 40 04 34, email: [email protected], website: www.arazi.gov.af 8 Ministry of Agriculture, Irrigation and Livestock Afghanistan Investment Support Agency (AISA) Thinking about investing in Afghanistan’s agriculture sector it is good to know that, apart from the Ministry of Agriculture, Irrigation and Livestock with its Private Sector Development Directorate and Arazi, you have one more partner on Government’s side which is tasked to support investors. Afghanistan Investment Support Agency (AISA) was established in September 2003 in accordance with a directive issued by the Government of Afghanistan as a “One Stop Shop for Investors”. AISA has been charged