The European Union has allocated €19.8 million to the Aga Khan Foundation and Aga Khan Cultural Services to implement the “Economic Resilience, Women’s Economic Empowerment, and Job Creation in Afghanistan” initiative. This project, with a total value of €22 million, aims to address the immediate needs of Afghan communities while fostering long-term economic stability, inclusion, and resilience. 

“Millions in Afghanistan remain trapped in poverty, 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. By enhancing employment, income generation, and productivity, it promotes resilient livelihoods, particularly for women and other vulnerable groups, including youth, returnees, internally displaced people, and farmers affected by the poppy ban. The program 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 recognise the importance of access to finance and continues to support it through Community-Based Savings Groups 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, Chief Executive Officer 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.  As a signatory to the project, the Aga Khan Foundation, Afghanistan thanks the EU for its generous support and is proud to be part of this effort, working alongside its sister agency the Aga Khan Cultural Services to implement this important initiative.”

Over a 36-month implementation period, the program will directly benefit 34,200 households and reach an estimated 292,544 people indirectly, with a strong emphasis on youth and women. It combines vocational, professional, and digital skills training with job-matching services, aiming to diversify local economies, strengthen micro, small, and medium enterprises (MSMEs), and improve job readiness. The initiative also includes livelihood opportunities in Afghanistan's cultural heritage sector, fostering both economic and cultural revitalization. 

Women’s economic empowerment is at the heart of this initiative, with 26,793 women expected to benefit directly and an additional 146,272 indirectly, through activities such as women-led dairy initiatives. To meet their specific needs, the project offers tailored training and business development support. 

In its efforts to combat climate change, the program deploy innovative solutions like solar-powered irrigation systems. These systems address water shortages, enhance agricultural productivity, and support environmentally sustainable development. Additionally, the initiative will support 920 farms and establish 300 greenhouses to strengthen local food security. 

The project integrates financial inclusion strategies by expanding Community-Based Savings Groups and improving value chains and market access, ensuring communities experience sustainable economic growth and resilience. 

Background

The EU’s assistance in Afghanistan focuses on supporting the most vulnerable populations, including women, girls, minorities, internally displaced persons, and refugees. All EU humanitarian and basic needs assistance is delivered through trusted partners, adhering to principles of impartiality and transparency. This new initiative exemplifies the EU’s commitment to fostering sustainable development and empowering Afghan communities to shape their future amid ongoing challenges.