Editor in Chief: Moh. Reza Huwaida Friday, September 25th, 2020

Investment, The Lifeblood of Our Economy

Recently the Pepsico entered into a deal of $60 million with Alokozay Group of Companies for the manufacture and distribution of its drinks brands in Afghanistan. The Alokozay Group, headquartered in United Arab Emirates, has also announced that it will soon launch a private bank that will compete with the banks in Afghanistan and at regional level. The Group has already invested in some other consumables. At the prevailing level of risk and uncertainty to the business the bold step taken by all investors are welcoming for Afghanistan's suffering economy.

In order to attract foreign and domestic investors the government of Afghanistan has been putting efforts. Although laws for investment are still quite vague at some points, the government has tried to facilitated investors by the scarce means available to it. In this regard the first significant step was the establishment of Afghanistan Investment Support Agency (AISA) back in September, 2003 for facilitating investors under one window operation. There are tens of thousands of functioning national and foreign companies registered with AISA. For the underdeveloped and foreign-dependent economy of Afghanistan, investment is considered lifeblood.

The three-decade long conflicts have kept investors away from Afghanistan. This factor is majorly responsible for the concerning economic condition we have today. Afghanistan is an attractive market for investors but due to lowest security level here, investment has gone decreasing over the last years – specially the foreign direct investments. It is not only investment and economy; insecurity has negatively impacted all fields of life. If the condition persist as is, it is far difficult for Afghanistan to become self-reliant in economy – for which attracting investment has a vital role.
Where there is more risk, there is either more profit or more loss. Same is the case with Afghanistan. Companies that have dared to invest here despite of serious risks and threats are earning good profit.

Like investments by Alokozay Group and many other companies, Afghanistan is in need of further investments – both foreign and domestic. If government brings better in security situation, Afghanistan can attract big fishes of business world to Afghanistan.