Afghanistan offers a pro-business minded environment in a fast growing emerging market of strategic importance, receiving high-level political attention from the international community. The country’s major asset is twofold and stems from its geo-strategic position right in the middle of a region rich in natural resources and close to some of the largest and fastest-growing markets in the world.
Industrialization, manufacturing and construction have been a main driving force behind Afghanistan’s recovery and the manufacturing industries are expanding rapidly. The variety, quality and quantity of production materials are increasing. This reflects the considerable business opportunities in the manufacturing industries and production. The continued reconstruction process, increasing income, and increasing population imply that manufacturing productions and construction will remain strong over the next years. Demand comes from different types of production activities:
– Major military-related projects
– Government reconstruction projects, such as water supply, power, electric systems, urban planning, city development, irrigation systems, etc.
– Large scale private and business construction fuelled by business opportunities
– Small scale development of retail and residential construction
Basic services such as electric power, water and sewage infrastructure are still very limited in Afghanistan. Most companies use basic materials needed for their projects which are mainly imported from neighboring countries. The rise in demand gives an opportunity to HSP Company to become a potential (HDPE, PVC, PPR-C and Fittings) manufacturer in the country.
Major Donors
The International organization such as USAID, UNICEF, DACAAR, World Bank, Asian Development Bank, KFW, PRT are the major contributors in promoting reconstruction and infrastructure development in Afghanistan and are involved in immense project and innovative engineering design which includes projects for Afghanistan ministry of Water and Power, Ministry of Education, Ministry of Health in order to facilitate the national basic water supply and sewerage canalization support projects.
The World Bank
The World Bank has also been involved in crediting the government of Afghanistan for establishment and development long term water supply networking that shall restore and expand the distribution network.
Asian Development Bank
The Asian Development Bank has also been involved in funding to the afghan government to restore water supply, roads, power, and gas infrastructure in Afghanistan.
Provincial Reconstruction Team
The provincial reconstruction teams (PRT) are prime implementing partners and major donors of infrastructure and development projects in Afghanistan
U.S. Army Corps of Engineers (USACE)
The USACE is one of the major contributor in promoting reconstruction and infrastructure development in Afghanistan which includes projects for Afghanistan ministry of defense in order to provide essential facilities to the national security forces and establish a secure and stable environment in the region. These projects are being equipped with newly-built state-of-the-art housing facilities that include water supply system, sewerage system, power generation systems, waste water treatment facilities, living facilities etc.
U.S. Agency for International Development (USAID)
The USAID is another agency that promotes reconstruction and infrastructure development in Afghanistan. USAID Afghanistan supports U.S. businesses through programs that develop Afghanistan’s business environment, reform efforts and mining sector, with project opportunities in Roadwork, Water and sanitation, Power transmission and Construction
International Contractors
Our major customers will be the leading the International contractor, who takes the responsibility for all aspects of construction and subcontracts with specialized contractor. We will target both the prime contractor and subcontractors in order to get orders.
Local Market
There are potential buyers in the local market and a promising market available for HDPE, PVC, PPR-C and fittings and other industrial equipments etc.
Note: a directory of major investors and companies in Afghanistan is available at Afghanistan Investment Support Agency website: http://www.aisa.org.af
raw materials from international market and increase its production on national level to cover a big percentage of the total demand of the market.
Poly Vinyl Chloride, PVC
- Imports from Pakistan: 20,000 metric ton/year
- Local Suppliers, who outsource the productions to Pakistan: 10,000 metric ton/year
- Imports from International market: 3,000 metric ton/year
- HSP Production: 3,000 metric ton/year
Based on the above facts, HSP covers 8.3% of the overall market demand for the PVC, However due to the limitation of financial resources HSP could not afford sufficient amount of raw materials and machineries from the international market and increase its production on national level to cover a big percentage of the total demand of the market.
Polypropylene Random Copolymer, PPR-C
- Imports from Turkey, China, Pakistan, Iran and Local Manufacturers and Suppliers: 3,000 metric ton/year
HSP has recently installed its production lines for the production of PPR-C Pipes and hopes to fulfill a sufficient amount of the demand of the market.
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