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Country Highlights

Agriculture Industry in Afghanistan 2023

Agriculture is a vital part of Afghanistan’s economy, contributing around 23% to GDP and employing about 40% of the workforce. Key products include fruits, nuts, wheat, vegetables and milled grains. The sector is heavily focused on small-scale subsistence farming, though there is potential for major growth with investments in irrigation, infrastructure, technology and access to markets.

Lack of crucial agriculture irrigation infrastructure, reliant on seasonal rainfall, is a key constraint. Only 7% of cultivated land is irrigated versus a potential of over 60%. Farming methods also remain basic with minimal use of machinery, inputs and post-harvest technology.

Soil quality is deteriorating due to erosion and lack of fertilizers/crop rotation. Market access challenges and lack of storage facilities lead to significant wastage. Less than 10% of produce is processed locally into value-added goods.

Targeted agriculture investments in irrigation canals, pumping stations, micro-irrigation systems and watershed management can boost yields multi-fold. Establishing contract farming linkages, agricultural research centers and training institutes can drive mechanization and adoption of high-yield varieties/hybrids.

Major gaps limiting agriculture productivity and development exist such as lack of cold storage, food processing capabilities and ability to get produce to domestic and international markets. Large investments in irrigation systems, agricultural research, farmer training programs and access to credit/finance are needed. Government incentives and public-private partnerships aimed at modernizing the industry could enable a transition from subsistence farming to more commercialized production and exports, significantly benefiting GDP.

Consulting firms like RFC can provide critical support through feasibility studies, industry analysis, benchmarking, program design and linking farmers to agribusiness buyers. With expertise across agricultural value chains from inputs to food processing and exports, RFC can assist in strategic planning, securing financing, facilitating technology transfers and forging trade partnerships. Our capabilities in project implementation, infrastructure building and capacity development can help drive an agricultural transformation and allow Afghanistan to meet its potential as a regional food production hub.

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Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

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