Implementing the SME Strategy - Action Plan for Developing Afghanistan’s Agri-Business Sector.

Implementing the SME Strategy - Action Plan for Developing Afghanistan’s Agri-Business Sector is a sectoral national action plan of Afghanistan targeting rural areas. It covers the period of 2011-2013. Its main objective is the practical implementation of the SME Strategy which in turn aims to encourage pro-poor growth by creating jobs in rural areas which have largely missed out on the booming economy which has long characterised Afghanistan’s major cities.
The Action Plan mainly aims to enable more inclusive and efficient agricultural and food systems. Under this general theme, among others, it provides objectives for developing areas such as post-harvest handling, processing, packaging, food standards, trade and marketing. Regarding the post-harvest handling, the Plan provides a set of concrete objectives, including: reviewing existing storage and cold chain facilities to identify problems and appropriate opportunities in specific localities; conducting a feasibility study for developing cold chains to support the export of high value horticultural products; in rural areas, developing improved crop-specific storage facilities, using local materials and building on existing techniques. With regard to processing, the Action Plan’s targets include identifying processing activities with high added value and good market potential; providing technical assistance for transfer of processing skills to existing and potential investors in this sector; disseminating a manual on small-scale fruit and vegetable processing to a wider audience across the country prepared by the Ministry of Agriculture, Irrigation and Livestock and FAO. As noted above, the Plan also promotes the development of the packaging sector, among others, by developing a strategy to incentivise more entrepreneurs to import packaging; identifying the specific packaging needs required to support agricultural products with the highest potential for export; developing standards for packaging material; linking producers, processors, traders, and local input suppliers with foreign packaging companies providing quality packaging at competitive prices and finally, when local packaging supply systems are set up, by linking producers, processors and traders with those Afghan packaging firms. The document is also concerned with food standards aiming to develop regulatory frameworks, grades and standards for food by: (1) reviewing existing policy, legal and regulatory frameworks in this area and identifying the gaps and anomalies to be addressed, (2) developing the prioritised legislation and regulatory frameworks required to support the key agricultural sub-sectors, and (3) building the capacity of Government staff and private sector stakeholders to ensure the new legislation is understood and implemented. In addition to this, it plans to establish streamlined and transparent food safety management, inspection and certification systems. This activity will involve the review of food standards laboratories in other countries and capacity building of relevant Government staff.
The Action Plan also touches upon the issues of trade knowledge and market linkages. Under this, it aims to collect and disseminate data through the network of the Ministry of Rural Rehabilitation and Development on (1) investment costs and expected returns on investments, (2) local, regional and international market trends and demand patterns (price ranges) for specific products, and (3) price trends for agricultural products seasonally. Finally, the document provides targets regarding marketing thereby supporting the development and promotion of a national brand for Afghan agricultural exports, with specific sub-brands for high value products that target niche markets such as saffron. Further, it aims to target organic and fair trade markets more vigorously and to link this to the umbrella brand established for Afghan agricultural products.