Afghanistan Growth Fund

After nearly a quarter century of conflicts, the Islamic Republic of Afghanistan is facing severe re-construction needs, with rebuilding costs expected to be about USD 15 billion. Investment opportunities exist across a wide range of sectors, especially, in the areas of Construction, Agri-business, Manufacturing and Mining. Even though several Multinational firms have invested in Afghanistan, the bulk of the economy remains informal with little or no competition and fertile grounds for new ideas.

Afghanistan Financial Services, in partnership with Capitalist Partners, is currently developing a unique, wholly Shariah compliant investment opportunity targeted at Afghanistan – the Afghanistan Growth Fund. The Fund aims to harness the growth opportunities presented by the current Afghan economy by developing new businesses alongside local partners taking it to a sustainable level in 3 to 6 years. The Fund aims at retaining a majority equity stake in these businesses in order to effectively drive their direction and growth and also intends to develop businesses in those sectors that will have a direct impact on the Afghan economy at the grass-root level. The Fund will be structured as a Private Equity vehicle with a eight year term, subject to two 1 year extensions. This Fund is not suitable for investors with a low risk appetite. The Fund will promote responsible investment by raising awareness of Environmental, Social and Governance issues and focus on transactions to create & maximize value for the benefit of all key stakeholders by creating businesses for long-term, sustained growth. The fund will seek to take an active role in assisting and empowering management to build world class businesses by ensuring that Global Best Practices are implemented in all aspects of business activities.

AFS will concentrate on financial development with domestic investment in small businesses such as manufacturing mobile broadband and other products as its focal point.