The South and Central borders of Asia seats The Islamic Republic of Afghanistan. The Republic lays hedged in by Pakistan to the south and east. Iran borders the west, Turkmenistan, Uzbekistan, and Tajikistan further to the north. The main religion is Islam.
Afghanistan occupies an area of 252,000 square miles, and its population stands at 38 million. Kabul is its capital and largest city. Afghanistan is a rugged country with an arid climate. Thus summers are hot, and winters are cold.
Ongoing wars and conflicts with Taliban forces are the issues of the day. As a result, this has strained population trends. For instance, there is more emigration to countries such as Pakistan and Iran.
Another key point is Afghanistan’s youthful population: half of the people are under the age of 15 years. The east of Afghanistan is more populated than the south, with clustering occurring in the foothills of the Hindu Kush Range and the interior valleys.
Agriculture plays a part in Afghanistan’s economy. Yet, it does not add much to the GDP of the country. Additionally, the illicit economy gives a significant share to production and exports. Furthermore, the Taliban is a known producer and exporter of opiates. More than half of the country’s income is from heroin sales. Moreover, these sales help to finance the Taliban’s operations. Other exported products include wool, fruit, nuts, cotton, and precious gems.
This country’s primary source of income is from outside aid. If aid is slow in coming, then economic growth slows. As a result, Afghanistan remains with no sure sources of growth.
Pakistan and Iran are the leading suppliers of consumer goods to Afghanistan. The agriculture sector produces dairy products, as well as meat and wool for local use. As a matter of fact, there is no need to source these products from the outside.
The spending power of households depends on various factors. Factors such as:
- The number of dependents per household, and
- A ready market for selling household items
Reasons to grow your business in Afghanistan.
In the past, Afghanistan has enjoyed a sound economy for its domestic industries. The situation has changed, and the country is no longer a good haven for investors. But there are still a few positive features of the market. We will list them first:
1. Afghanistan lies along an important trade route of Asia, Europe, and the Middle East. So, there are some economic gains
2. Mobile signal is available in 90% of the country. As a result, the country’s communication network is effective
3. The country receives aid from the United States and the Soviet Union. Thus, this helps in local investments and spending
Afghanistan ranks as a high-risk country. It is a frail economy that is dependent on outside aid. As a result, economic growth is slow. It also has a challenging business environment. Thus, one has to be cautious when investing in this market.
About Market Research in Afghanistan
As a future investor in foreign markets, following the proper steps is essential. First, you will need a trusted team that can at least conduct research and deliver valid results.
Our team at SIS International Research provides this and more. We use Qualitative and Quantitative methods, coupled with Strategy Research to probe the market. We also organize Focus Groups, and we conduct Interviews and Surveys.
SIS probes the market’s neighborhoods, trends, and industries for you. By the same token, we bring accurate results based on the state of the market, what it lacks, and the chances for success.
Let us help you to make an impact on the growth of your business today.