Unless the market picks up, women entrepreneurs may be forced to shut down businesses.
Women entrepreneurs find it difficult to get loans since in most cases they are neither owners of land nor of property like their homes. Most commercial businesses fail due to lack of availability of capital.
When businesses do not do well, returning the loan becomes an impossible proposition. Laila Hamidi, the owner of Afghan Sultan Razia company, says she got a loan from the Afghan United Bank for her business. “I borrowed 150,000 Afs (2,200 USD), and handed over my ownership deed that was in my name (as collateral),” says Hamidi. Luckily for her she was able to repay the loan in one year. “I paid the loan back within a year,” she says. Had she defaulted, her property would have been put on sale, like it has happened in the case of many businesses.
Fazila Azizi, head of the women’s enterprise department in the Ministry of Commerce and Industries, also confirms that women entrepreneurs find it harder to raise funds. The ministry is trying to find a solution, she says.
“We have talked with banks and we may have found a short-term solution with a memorandum of understanding between the union of industrialists and Bank-e-Millie Afghan (national bank). The bank will charge an interest of 6 percent, which is low, but still few women can take loans because the majority have nothing as guarantee for the loan,” says Azizi. Even microfinancial institutions charge between 12 and 17 percent interest.
The Afghan Women’s Chamber of Commerce and Industries has appealed to the president and his wife, Rula Ghani to set up a separate fund for women entrepreneurs.
Business down
Up to 700 female-headed businesses are registered with the Ministry of Commerce and Industries. Business has not been good in recent years, says Kubra Dastgirzada, owner of the Farah Farhat Faizi company.
Merwarid Ahmadzai is the head of the businesswomen’s union in Herat province as well as the owner of the handicrafts company, Khwaheran e Saba. The biggest problem is the market has shrunk for us, she says.
In some cases, women entrepreneurs complain the authorities have not provided them with a suitable place to work out of. Zahra Wafa, who has a trading company called Shah Foladi in Bamyan, says, “We are 130 women making handicrafts and they (local government officials) have not even given us a place to do business in.”
Ali Reza Hasanzada, head of the Bamyan Chamber of Commerce and Industries, urges the government to assist female entrepreneurs.
The central Ministry of Commerce and Industries insists working groups have been set up to address the concerns. Spokesperson Musafer Quqandi says an initiative called development of new markets was launched with the support of the World Bank for technical assistance to companies including 350 that are owned by women, he adds. Meanwhile, the ministry is negotiating with municipalities and provincial offices for separate markets for women.
There are also plans for new industrial parks. “We have a good budget for this year and the president has also said it must be used for carpet manufacturing in three provinces,” he says. The parks will also include a crèche, clinic and school since many of those working in the carpet industry are women.
The 2-month-old Afghan Women’s Chamber of Commerce and Industries is working at strengthening relations with countries in the region through regional and international business associations. Manizha Waseq, president of its board of directors, says its members include IT companies, construction businesses, dry fruit traders and handicrafts.
