Afghanistan eyes double-digit growth with economic zones
COUNTRY KEEN TO BE TRANSIT AND TRANSPORT HUB BETWEEN CENTRAL AND SOUTH ASIA The government is keen to move the country into a “new era of economic development”.
Afghanistan aims to achieve double-digit economic growth within the next three to five years with the setting up of special economic zones (SEZ) around the country.
The Government of Afghanistan sealed a memorandum of understanding (MoU) with the Chord Group late on Tuesday in Dubai to establish a series of special economic zones as part of its development plan.
The Chord Group is one of the world’s largest special economic zone consultancies and works regularly with governments across the world including the US, Caribbean, Central America and China.
“If we can create the enabling and right environment for private sector development, Afghanistan will be the springboard for future opportunities,” Mohammad Daoud Sultanzoy, ex-lawmaker and Chairman of the Afghan Airfield Economic Development Commission (AAEDC), said in an interview.
He said that Afghanistan is about to transition into a phase of development where the country will be receiving major infrastructural facilities located in different parts of the country.
The government is keen to move the country into a “new era of economic development” not just only for Afghanistan but also for the entire region.
Afghanistan lies in the heart of Asia and is surrounded by six countries and it is in a great position to link the markets of Middle East, South Asia, Central Asia and China.
“Afghanistan is now opened for businesses and will become the springboard for all economic developments in the region,” Sultanzoy said.
The World Bank expects 2.5 per cent economic growth this year [for Afghanistan] from two per cent in 2014 from 3.7 per cent in 2013. The country had an average of nine per cent growth during 2003-12. It hit a high of 20.4 per cent in 2009.
“We have an investor list that is waiting for the MoU [Memorandum of Understanding] to be signed,” said Jason Blick, the Chairman of the Chord Group.
Gross domestic product
He said the first SEZ is projected to increase the GDP (gross domestic product) of Afghanistan by almost $1.5 billion per annum by 2020. The direct impact of the operational phase of GDP once SEZ is fully occupied is calculated to be around $822 million per annum.
This consists of $612 million of wages and salaries for the employees within SEZ and $180 million of direct government revenue.
“With two SEZs, $5 billion can be added to the GDP by 2030. We are going to offer 50-year tax-free guarantee for companies, 100-year foreign ownership, no restrictions of capital repatriations, no import or export duties, no personal tax and 99-year lease period.
We will start with two to three SEZs from January and it will be taken to rest of the provinces later,” Blick said.