The EU has announced a €10 million investment to launch the second phase of a UNDP-run programme supporting women’s livelihoods and businesses in Afghanistan.
The funding will support the Women’s Economic Empowerment through Local Enterprise Development programme — known as WE-LEAD — which is implemented by the United Nations Development Programme and financed by the EU, the European External Action Service (EEAS) informed in a statement on Thursday.
The second phase will build on WE-LEAD’s first phase and UNDP’s ABADEI platform, a UNDP initiative that supports community resilience and local economic recovery across Afghanistan.
WE-LEAD II will provide financial and non-financial services to women at different stages of economic activity, ranging from informal savings groups to micro, small and medium-sized enterprises.
The programme will focus on barriers including limited access to finance, markets and skills, and will use Sharia-compliant financial mechanisms alongside business development support, mentorship and market links.
Sharia-compliant finance refers to financial products designed to follow Islamic principles, including restrictions on interest.
Focus on underserved provinces
The initiative will be implemented in selected underserved provinces in Afghanistan’s Central and Central Highlands regions, where women’s labour force participation is low and access to financial services remains limited.
Planned measures include turning informal savings groups into Sharia-compliant rotating savings and credit associations, expanding access to subsidised Islamic microfinance, and supporting women-led micro and small businesses through “blended finance” and tailored services.
Blended finance typically combines different types of funding, such as grants and loans.
Other elements include work to connect women entrepreneurs to local value chains using a market-systems approach, and a “Social Enterprise Idea Challenge” for women-led community solutions.
“The European Union is proud to continue its partnership with UNDP through the next phase of WE-LEAD,” said Veronika Boskovic Pohar, the EU Chargée d’Affaires to Afghanistan, adding that the project would focus on “inclusive and durable alternative livelihoods” and linking enterprises to markets.
Stephen Rodriques, UNDP Resident Representative in Afghanistan, said the programme would support “thousands of women and women-led businesses” with financial literacy, access to Sharia-compliant finance and business support services.
