Harakat is an independent, non-profit, Afghan-managed organization that aims to improve Afghanistan’s business environment. They provide grant funds to the private sector, government and civil society to implement activities to reduce or remove barriers that currently make it difficult to do business in Afghanistan. They started operating in 2008 and have since worked diligently to improve the country’s investment climate. 

They are Afghan-managed, and know the particular challenges and barriers that face businesses trying to maximise opportunities and returns here in Afghanistan. They know that issues of corruption, bureaucracy and non-enforceable policies are real threats to economic growth. 

That’s why they provide grants to relevant entities that have solid ideas to tackle these issues and create a flourishing investment environment.

They started with a £30 million (≈US$50 million) fund and they aim to increase the total amount to US$100 million from private sector and donor contributions, so we can continue to fund practical, rapid-result projects that promote the following 8 priority areas.

 

Vision

Facilitating a healthy and competitive investment climate in Afghanistan that leads the way towards sustainable economic development.

 

Mission

Removing and reducing regulatory and institutional barriers to doing business through providing grant funds to government, private sector and civil society, in order to increase or create opportunities for investment in Afghanistan.

 

Harakat 8 Priority Areas for Funding

1. Financial markets that provide greater access to finance and affordable credit to all sizes of business, especially SME’s;
2. Streamlined and more effective regulations and creation of regulatory impact assessment systems;
3. Increased private sector investment in infrastructure, especially energy, water, agriculture and transportation;
4. More equitable and efficient taxation and customs systems;
5. Strengthened property rights and more effective contract enforcement;
6. Higher workforce productivity and mobility and improved labour market regulation
7. Strengthened competition policy that reduces anti-competitive practices; and
8. Improved capacity of government and institutions to tackle corruption.

 

Partners in Action

Harak-AICFO funding has enabled our Partners to undertake the following activities

• Training courses to increase capacity within financial institutions
• Creation of Credit Registry to enhance the ability of financial institutions to manage credit risk, diversity of credit products, and increase lending volume.
• Improvement of Collateral laws and registries for easier access to private credit for micro, small and medium-sized  enterprises.
• Development of national standards to improve competitiveness of Afghan products
• Established of a more transparent Business Licensing process.
• Development of a Trade Policy to facilitate greater coordination of trade-related activities.
• Development of National Building Codes for safe and sustainable design and construction practices.
• Implementation of transparent revenue collection and efficient taxation initiative in the mining sector
• Creation of a more efficient taxation system for small taxpayers
• Creation of all secure system for management of land records
• Development of National Occupational Standards and training to increase capacity of Afghan workers
• Establishment of a school of accounting.
• Development of a consumer protection legal framework to improve access to safe and dependable goods and services
• Development of a competition law to reduce anti-competitive practices
• Training for journalists to improve business reporting and advocacy skills.