Current business situation

Exporters should be aware that Australia maintains United Nations Security Council sanctions in respect of Afghanistan. These sanctions require Australian organisations and individuals to comply with a range of measures and, in general, also apply extraterritorially to Australian nationals overseas.

Sanctions may include export and import restrictions, prohibitions of technical assistance, training and financing, travel sanctions, and financial sanctions against specific persons and entities.

See the following Department of Foreign Affairs and Trade website for more information about sanctions: www.dfat.gov.au/un/unsc_sanctions/unsc_sanctions_whatare.html.

For information about United Nations sanctions currently in force, please see: www.dfat.gov.au/un/unsc_sanctions/index.html. 

For information about the operation of the defence and strategic goods export control regime, please see: www.defence.gov.au/strategy/dtcc.

Country overview

Country facts

Capital city:	Kabul
Surface area:	652,000 sq km
Population:	24.3 million
Official language(s):	Pashto, Dari
Government:	Islamic republic
Head of State:	H.E. President Mr Hamid Karza
Head of Government:	H.E. President Mr Hamid Karza
Australian exports to Afghanistan:	A$12,285,000
Australian imports from Afghanistan:	A$307,000
Afghanistan's principal export destinations:	USA, Pakistan, India
Afghanistan's principal import sources:	Pakistan, USA, India

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Key economic indicators and statistics for 2006*:

GDP - US$8.9 billion
GDP per capita - US$354
Real GDP growth - 12 per cent
Inflation - 12.3 per cent

(*IMF forecast)

Afghanistan has endured 25 years of war, leaving much of the country in tatters. There is very little functioning infrastructure. Even in Kabul there is only the barest backbone of a phone network left, power supplies are intermittent at best, and accommodation is in very short supply. As the number of international agencies and personnel grows, the pressure on accommodation and services is growing acute. As such, prices have escalated rapidly. While some parts of the city show little evidence of war, most parts have sustained significant damage, while others are completely destroyed.
 

The International Security Assistance Force (ISAF) has been successful in bringing stability to Kabul, but security remains the major issue that prevents a great deal of economic activity. These  concerns have continued to hinder the implementation of aid projects by multi-lateral agencies. 

More positively, the streets of Kabul reverberate to the sound of an industrious and entrepreneurial people whose priority is to rebuild their lives and city. The markets are a hive of activity and there is a semblance of normality returning. 

Another East Timor?

While there are similarities, the scale and magnitude of the problems in Afghanistan does make this a different scenario. The reconstruction of Afghanistan is at least 30 times the size of East Timor. Contacts in UN and multi-lateral organisations do take note of the experience suppliers have gained from an environment such as East Timor, but this should not be over-stated. There are as many differences as similarities.

The geography is also quite different. Kabul is closer to Europe, Russia and Turkey than to Australia. Several European countries, most notably Germany, have had a considerable presence in Afghanistan prior to the problems of 1979, and onwards. The high profile of the ‘War on Terror’ and the sums of money pledged at the Tokyo Donor’s conference in January 2002, mean that the level of competition will be quite intense.

For a more complete history of Afghanistan, as well as an overview of its geography and structure, please visit Afghanistan Online.

Political climate

Austrade continues to monitor developments in Afghanistan through the office in Islamabad. The political situation in the country remains the greatest determinant of commercial activity.

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

Trade relations and statistics

Major Australian exports to Afghanistan (2005-06):

• Other electrical machinery - A$1,080,000
• Telecommunications equipment - A$958,000
• Internal combustion piston engines - A$546,000
• Electric power machinery - A$161,000

Major Australian imports from Afghanistan (2005-06):

• Non-electric engines & motors - A$157,000
• Floor coverings - A$56,000
• Furniture - A$37,000
• Trailers & semi-trailers - A$23,000

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Doing business

Business opportunities

Aside from political developments, it should be remembered that despite the US$4.5 billion of aid pledged to Afghanistan, the country remains in the depths of a humanitarian crisis. The international assistance effort continues to focus on the emergency needs of the Afghan people.

There have been some short term rapid impact projects undertaken in the country, although the uncertain security situation has prevented a full rollout of projects.

Austrade’s view is that the greatest scope for Australian participation is in the multi-lateral project area. Sectors that will afford good opportunity include agriculture, irrigation, dry land farming and social infrastructure.

Australian companies have been active participants in multi-lateral funded projects. The Asian Development Bank and the World Bank are the lead agencies in Afghanistan and have had teams in the country undertaking needs assessment.

This is not a market for everyone. The impediments and challenges are significant. But Austrade does have good information and we can advise your company on the most appropriate strategy.

For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.

Business etiquette

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Visiting this country

Security and health

Afghanistan is a complex country with ethnic, racial and political divisions. This becomes even more of an issue outside of the capital city. Rural areas are not secured and all advice urges against any visits outside the zone of International Security Assistance Force control. Land mines are another huge problem.

The Department of Foreign Affairs and Trade's current travel advice recommends that Australians defer their travel to Afghanistan.

Travel tips and facts

Time

Afghanistan is five and a half hours behind Australian Eastern Standard Time.

To find out the current time in Kabul, view the World Clock.

Dialling codes

Afghanistan's country code is 93.

For calls to Afghanistan from Australia dial: 0011 + 93 + area code + telephone number.

For calls from Afghanistan to Australia dial: 00 + 61 + area code + telephone number.

For further information (eg. area codes) please visit the White Pages - international dialling codes.

Weather

For weather details in Afghanistan, please visit the World Meteorological Organization.

Currency

Oanda currency converter

Public holidays

March 21 - Noruz 
April 4 - Loss of the Muslim Nation 
May 1 - International Labour Day 
August 19 - Independence Day 
August 30 - Pashtoonistan Day

Useful websites and resources

Government, business and trade

Afghanistan Government - www.afghangovernment.com
Afghanistan Online - www.afghan-web.com
Islamic Republic of Afghanistan - www.af
Ministry of Foreign Affairs - www.afghanistan-mfa.net 
 

Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.

Contact details

Austrade offices

If you believe you have the capability and resources to tackle this challenging environment then Austrade can assist in several ways. Preparing a body of knowledge prior to approaching the people involved with projects or programs in Afghanistan can make a big difference. For a great deal of the multi-lateral projects the focus should be in Manila or Washington, rather than on Kabul and Islamabad.

Our mutilateral team can provide a wealth of information on how to go about assessing the opportunity for your firm and can link you to Austrade offices in Manila, Washington and Islamabad.

The Austrade office in Pakistan is responsible for Afghanistan and can assist with any queries. A list of Austrade offices (in alphabetical order of country) is available.

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

Australian Embassy

Australia does not have an Embassy in Afghanistan, but Australia's High Commission in Pakistan, is accredited to Afghanistan.

Australian High Commission in Pakistan
Constitution Ave and Ispahani Rd
Diplomatic Enclave No. 1
Sector G-5/4 Islamabad, Pakistan
Tel: +92 51 282 4345
Fax: +92 51 282 0112
Email: consular.islm@dfat.gov.au
Web: www.pakistan.embassy.gov.au

Business hours:
8.00am-4.30pm, Monday to Thursday
8.00am-12.30pm, Friday

(Last updated: 10 Jun 2008)