The Afghanistan Community Resilience and Livelihoods (CRL) Project supports the Private Sector in Afghanistan to grow and develop

Laborers unload cement bags at the project site which  are purchased from the local market in Kabul City on 23 June 2024. @Sana Stanikzai 

Afghanistan has undergone a series of complex political, economic and social changes since the fall of the Government of the Islamic Republic of Afghanistan  in August 2021.  Following the changes after August 2021, the private sector faced significant challenges and uncertainty. This led to widespread disruption in economic activities and posed various risks to businesses and investments such as Ehsan Kamran Cement, a cement wholesaler. 

‘’Pre-August 2021, we used to import 2,000 bags of cement from Pakistan to Afghanistan on a weekly basis. This was decreased to 200 bags following the changes after August 2021, and I was unable to generate sufficient revenue and pay the salary of my staff, rent of the warehouse and other associated expenses, so I had to downsize my business during 2021-2022.   
- Maiwand Babakarkhail, Head of Ehsan Kamran Cement (wholesaler) 

The Community Resilience and Livelihoods (CRL) Project has been implementing 520 Labor Intensive projects since October 2022 through 172 contractors across the county in 10 cities namely, Kabul, Kandahar, Jalalabad, Khost, Herat, Bamyan, Gardiz, Ghazni, Kunduz and Mazar.

Since the start of the Project, the contractors have engaged with over 1,200 local suppliers for the implementation of Labor Intensive Works (LiW) in the urban cities. 

Laborers using the cement in the construction of plum concrete streets in CRL Projects in Kabul City on 23 June 2024. @Sana Stanikzai 

In Kabul province, 200 sub projects are being implemented by 93 contractors, and more than 100 sub projects will be implemented in the next 14-16 months. Most of these sub projects have small-scale infrastructure output, in which cement and crushed gravel are the most commonly used materials. 

On an average basis, each of the project contractors contracted 5-7 suppliers for cement, crushed gravel, base-course materials, Personal Protective Equipment (PPE), stone, plum, sand,etc. 

Engaging local suppliers
During the construction of the “Upgradation of Sulaiman Khel village streets and plum concrete”, the Yaser Ebrahimi Construction Company has contracts with the Ehsan Kamran Cement wholesaler and Jalat Khan gravel production plant. These two companies supply cement and gravel not only to Yaser Ebrahimi Construction company but other contractors as well. 

Mr. Maiwand Babakarkhail Head of Ehsan Kamran Cement wholesaler. @Rafiullah Hemat 

Through contracts with the CRLP, Mr. Maiwand Babakarkhail has been able to expand his business after suffering losses during the post-August 2021 transition. 

‘’Now that we are working with the CRL Project contractors, we supply more than 2,500 bags of cement in one month to them. I have hired more people and opened up new branches/warehouses in other cities as well. My business has been improved, generates additional revenue and I can expand my business with opening new branches.'’
Maiwand Babakarkhail, Head of Ehsan Kamran Cement (wholesaler) 

Jalat Khan Gravel Production Company is located in Kabul, PD#12, which produces and supplies crushed gravel, sand and base course materials to the CRL Project contractors. The company was about to collapse after the changes in August 2021. The company stopped production and closed down its operations. There were only 4 workers retained to look after and guard the plants and equipment in the middle of Khak e Jabar valley. 

Mr. Amir Mohammad Ahmadzai the owner of a crushed gravel production company in Kabul,  23 June 2024. @Rafiullah Hemat 

Mr. Amir Mohammad Ahmadzai, the owner of Jalat Khan Gravel Production Company became excited when he heard about the CRL Project in Kabul in early 2023. He increased the number of employees to 24 and installed new machinery after his company signed a contract with the CRL Contractors. He shared the following story: 

‘’It has been 16 years since I started production and supply of crushed gravel to construction companies. Following the changes after August 2021, I had to close operations as all the construction activities were stopped and the demand for crushed gravel dropped to almost 10%. Now I have contracts with contractors working with the CRL Project and supply materials to projects. My business has grown sufficiently and can generate revenue.”

The CRL project is invigorating demand for products such as cement, gravel, personal protective clothing, construction tools and equipment, providing substantial  supply chain opportunities for local companies to improve their revenues. These opportunities are helping private companies to recover from the socio-economic impacts of the political transition. 

Further, the project is building the operational capacity of these companies through workshops and conferences that train them on how to submit complete and compliant packages for bids and tenders. In the workshops, suppliers are exposed to procurement systems that are common to the United Nations, empowering them to participate in the broader United Nations Global Marketplace.