Harakat – Afghanistan Investment Climate Facility Organization (AICFO) is an independent, not-for-profit, Afghan managed organization that provides grant funds to the private sector, government and civil society to implement projects that reduce or remove institutional and regulatory barriers to doing business in Afghanistan. Harakat – AICFO aims to improve Afghanistan’s business environment by removing obstacles to private investment.
Harakat does not implement or manage investment projects; it funds the activities of others, supporting the reform role of the Government and complementing the vision of the Private Sector. Harakat is an initiative of the UK’s Government, Department of International Development (DFID), which provides the initial seed funding. Other multilateral, bilateral and private sector funders will augment this seed funding to support practical, result-oriented projects that promote the following 8 priority areas:
1. Financial markets that provide greater access to finance and affordable credit to all sizes of business
2. Streamlined and more effective regulations and creation of regulatory impact assessment systems
3. Increased private sector investment in infrastructure, especially energy, water and transportation
4. More equitable and efficient taxation and customs systems
5. Strengthened property rights and more effective contract enforcement
6. Higher workforce productivity and mobility and improved labour market regulation
7. Strengthened competition policy that reduces anti-competitive practices
8. Improved capacity of government and institutions to tackle corruption.
Harakat’s aim is not to replace the government, or civil society’s important work in reducing barriers to sustainable business. It supports the positive initiatives already happening in various sectors, works in partnerships with existing and emerging key players, and provides support to them so that more of these become reality. Harakat will use the available funds to identify and fund practical projects that will increase the attractiveness and ease of investing in Afghanistan.