Phones, currency exchange... some businesses capitalise on Taliban rule
Taliban takeover sent Afghanistan’s economy into a tailspin, billions in international funds were frozen, tens of thousands of highly-skilled Afghans ed the country taking their money with them; but, even amid dicult conditions, some businesses are makin
unis Sa, a businessman in Kabul, knows very well the importance of showing o your phone if you want something done.
“In Afghanistan, your phone is your personality,” he said, smiling, a jewelencrusted ring on each hand. One boasts an emerald, the other a fat Russian diamond.
“When you go to a meeting with the government, the better your phone, the more they respect you.”
Mr. Sa runs a phone shop in the posh Shar-eNaw neighborhood. An armed guard stands outside. The iPhone 15 Pro Max adorns the shelves, retailing for $1,400. He has customers ready to part with this sum of money, which may come as a surprise to some given the country’s economic woes and more than half the population relying on humanitarian aid to survive.
Afghanistan’s nances were on shaky ground even before the Taliban seized power in 2021. The budget relied heavily on foreign aid and corruption was rife. The takeover sent Afghanistan’s economy into a tailspin, billions in international funds were frozen, and tens of thousands
Yof highly skilled Afghans ed the country and took their money with them.
But, even amid dicult conditions, some businesses are making money out of Taliban rule. Women are reduced to clients however, as authorities barred them from most jobs.
Diverse client base
He has tapped into a diverse consumer base — the ones hungry for the latest iPhone release and those happier with simple handsets, which make up the bulk of his sales and sell for between $20 and $200.
The Taliban used to attack phone towers and threaten telecom rms, accusing them of colluding with U.S. and other international forces in helping track insurgents’ movements through mobile phone signals. Now, they’re investing in 4G.
The Communications Ministry says two million new SIM cards have been issued in the past two years and subscriber numbers are increasing. Ministry spokesperson Enayatullah Alokozai said the government was ploughing $100 million into telecom sector and had fully restored hundreds of towers.
There are 22.7 million active SIM cards in a country of 41 million people. Of these, 10 million are for voice calls and the rest for mobile Internet.
According to Trade Ministry, more than 1,584 tonne of phones came into Afghanistan in 2022. Last year, it was 1,895 tonne.
Mr. Sa said he has many Taliban customers and it’s the younger ones who prefer iPhones. “Of course they need smartphones. They use social media, they like making videos. The iPhone has better security than Samsung. The camera resolution, processor, memory are all better. Afghans use their smartphones like anyone else.”
Mr. Sa has the iPhone 15 Pro Max, wears an Apple
Watch Ultra and owns three cars. Business was bad immediately after the Taliban takeover but it’s improving, he said. “The people buying the new-release iPhones are the ones with relatives abroad sending money to Afghanistan.”
Remittances are a lifeline, although they’re less than half of what they were before the Taliban took power and the banking sector collapsed.
At the raucous Shahzada Market in Kabul, hundreds of money exchangers clutch stacks of local currency, the afghani, and noisily hawk their wares. They occupy every oor, stairwell, nook and cranny.
Abdul Rahman Zirak, a senior ocial at the money exchange market, estimates $10 million changes hands daily. The diaspora sends mostly U.S. dollars to families, who exchange it for the afghani.
There used to be more ways to send money to Afghanistan before the Taliban seized control. But there are no more links to SWIFT or international banking and that’s a major reason why business is brisk at the market. “The work of money exchangers has increased and strengthened,” Mr. Zirak said.
Trade becomes hectic during the holidays. During the holy month of Ramadan, 20,000 people visited the market daily and it took more than 90 minutes to enter, he said.
“If the sanctions are lifted and assets unfrozen, then, maybe our business will drop. But I don’t see it happening. Many don’t have bank accounts. Unemployment is high, so people send money. Our business will be needed for years to come.”
Islamic texts
Irfanullah Arif, who runs Haqqani Books, a specialist retailer of Islamic texts, is also upbeat about his fortunes. The majority of his customers are teachers and students at religious schools, or madrassas. There are at least 20,000 madrassas in Afghanistan.
While Mr. Arif’s business suered like everyone else’s in the chaotic aftermath of the takeover, there was another reason. “All the students left the madrassas and went to work for the (Taliban) government,” said Mr. Arif.
The Taliban’s push for religious education has given him some relief. Last year, he sold 25,000 textbooks. But there’s a price to pay for success. Mr. Arif imports everything and the Taliban are laser-focused on collecting revenue, even on Islamic literature.
M. Arif pays a tax of 170 afghanis ($2.36) on a carton of 100 books, the shipping cost for which is 500 afghanis ($6.95). Taxes on his bookstore have tripled under Taliban rule.
Afghanistan’s nances were on shaky ground even before the Taliban seized power in 2021; the budget relied heavily on foreign aid and corruption was rife