Good afternoon, Ambassador Michael McKinley, U.S. Ambassador to Afghanistan, HE Humayoon Rasaw, Minister of Commerce and Industries, HE Eklil Ahmad Hakimi, Minister of Finance, distinguished guests.  I am pleased to welcome you here to the American Embassy for the launch of the Afghanistan Investment Climate Reform program, continuing the important work USAID and the IFC/World Bank Group have undertaken to strengthen the business climate in Afghanistan. 

Increasing local and international investment will lead to job creation, economic growth and a more prosperous and stable Afghanistan.  This is our vision, and this is what we have worked toward over the past several years, together with our counterparts in the Afghan government.

At $13.3 million over four years, the Afghanistan Investment Climate Reform program is USAID’s largest program to strengthen the investment climate with the IFC in the world.  It builds upon the successes of $2.5 million in existing USAID-funded activities with the IFC that focus on improving the construction permit process in Kabul and regulatory reform within the context of the “Doing Business” indicators.

Since these smaller investment climate reform activities started in October 2011, the average time to obtain residential and construction permits in Kabul was reduced from eight to five months.  These activities built upon the World Bank Group’s initial reform work as part of the USAID-funded Doing Business Reform recommendations.  Based on these recommendations, the Afghan government focused on five indicators - starting a business, dealing with construction permits, getting credit, registering property and protecting minority investors.  

Small business owners are now better able to forecast and manage their budgets thanks to the introduction of a new fee schedule for small and medium enterprises by the Afghan Investment Support Agency and the implementation of an electronic collateral registry.  These changes enable entrepreneurs to leverage their assets and strengthen their access to credit.

These are just a few examples of improvements to Afghanistan’s business enabling environment.  If these successes were accomplished in four years with $2.5 million, imagine what we can achieve with more than five times the resources under the new Afghanistan Investment Climate Reform program.

The IFC/World Bank Group, along with Afghan institutions such as the Ministry of Commerce and Industries, Ministry of Finance, and the Afghanistan Investment Support Agency, have been essential partners for USAID to implement important economic policy reforms in Afghanistan to create an environment for growth and enhance the country’s competitiveness.  These partnerships complement and feed into other USAID projects focused on economic governance and trade.

In the area of trade, USAID is working with the Afghan government to implement a trade and investment policy framework to support the country’s accession to the World Trade Organization.  Through our Afghanistan Trade and Revenue project, USAID also supports bilateral and multi-lateral agreements among Afghanistan and the Central Asian Republics, Pakistan, and India to harmonize tariffs and simplify border-crossing procedures.

Through the Commercial Law Development Program, USAID and the Department of Commerce are working to develop a modern commercial legal sector.  This in turn will foster greater long-term investment in Afghanistan.  From helping to promote alternative dispute resolution by training staff at the Afghan Center for Dispute Resolution to advising policymakers on drafting and implementing new laws and supporting the new National Procurement Agency, USAID supports the Afghan government to improve the legal regime for business to boost economic growth.

Collectively, these efforts are strengthening the business climate in Afghanistan. This new investment reflects the strong commitment of USAID, and our partners at the IFC/World Bank, to help the Afghan National Unity Government realize its vision for Bolstering Private Sector Confidence, Promoting Growth and Creating Jobs.  We at USAID look forward to working with everyone here to help Afghanistan achieve this transformational reform.

Thank you.