The Ministry of Industry and Commerce (MoIC) says it has signed memoranda of understanding worth over $12 million with 15 organizations to support and develop small and medium enterprises (SMEs).

During the signing ceremony, ministry officials emphasized that project implementation must prioritize support for individuals genuinely engaged in economic activities.

The ministry stated that 7,673 people in Kabul, Paktia, Paktika, Khost, Balkh, Kandahar, Logar, Kunduz, Baghlan, Badakhshan, Badghis, Faryab, Jowzjan, Nangarhar, Takhar, and Bamyan provinces will benefit from these initiatives. 

The ministry’s spokesman Abdul Salam Jawad Akhundzada said, “These 15 organizations will execute developmental, skill-building, and educational projects valued at $12,475,406, focusing on entrepreneurship training, carpet industry development, jewelry, and handicrafts.”

Private sector representatives welcomed the move, stating that supporting SMEs will positively impact Afghanistan’s economic and developmental activities.

They added that consistent investment in the carpet industry could curb widespread unemployment and play a pivotal role in rural economic development. 

Private sector members further noted that small businesses fulfill essential livelihood needs for communities and will contribute to training professional and technical personnel, as well as fostering growth in large-scale industries. 

Uzbekistan is set to open a trade center in the northern city of Mazar-e-Sharif, which will provide Uzbek entrepreneurs with a platform to market their goods in Afghanistan.

According to Trend news agency, the center will cover an area of 220 square meters and will also be used to find new trading partners between Afghan and Uzbek entrepreneurs and expand export opportunities.

The center will house permanent showrooms and warehouses for pharmaceuticals, electrical goods, and construction materials.

Trade turnover between Uzbekistan and Afghanistan reached $153.7 million in January 2025. This is 231 percent more compared to the same period last year ($46.3 million in January 2024).

Last week the Uzbek Ministry of Investment, Industry and Trade said Uzbekistan and Afghanistan plan to increase the trade turnover to $3 billion.

The current state and future prospects of bilateral trade and economic relations were discussed on Saturday during a meeting between Uzbekistan’s Minister of Investment, Industry and Trade Laziz Kudratov, and Afghan Trade Minister Nuruddin Azizi, who was visiting the Termez International Trade Center in the Surkhandarya region, the ministry said in a statement.

The latest trade house development comes amid concerted efforts by both countries to boost their cross-border trade relations.

Uzbekistan’s electricity supply company has said there has been no changes to tariffs for electricity exports to Afghanistan. 

According to a statement issued by the National Electric Networks of Uzbekistan, no plans have been made to amend the tariffs although an agreement was reached to expand the project to build the Surkhon-Pul-e-Khumri 220-500 kV power transmission line by constructing additional substations and networks.

Last months, “a delegation headed by the acting Deputy Prime Minister of Afghanistan, Mullah Abdul Ghani Baradar, visited our country.

“During the bilateral meetings, issues of further expansion of mutually beneficial relations, consistent development of cooperation in trade, economic, energy, transport and other spheres were discussed in detail,” the statement read.

“As a result of the project optimization and the increase in the share of localized materials in construction, a preliminary agreement was reached to reduce the construction cost from 252 million to 222 million US dollars. 

“The contract is currently in the process of being agreed upon and will be signed after the negotiations are completed.

“At the same time, no official changes were made to the tariffs for electricity supplies to Afghanistan,” the statement read.

In December last year Uzbekistan extended its agreement to export electricity to Afghanistan for 2025.

After talks in Afghanistan, Uzbekistan’s energy company Uzenergosotish and Afghanistan’s DABS signed a power purchase agreement for electricity supplies this year.

The sides also conducted “comprehensive and detailed” technical discussions regarding the construction of the Surkhan to Pul-e-Khumri to Kabul power line. 

Once operational, the project is expected to supply Afghanistan with 24 million kWh of electricity daily, amounting to 6 billion kWh annually. 

The transmission line will span 245.6 kilometers, with 45 kilometers on Uzbekistan’s side and 200.6 kilometers within Afghanistan.

Currently, Afghanistan produces only 20% of its electricity domestically, importing the remaining 80% from Uzbekistan, Tajikistan, Turkmenistan and Iran. 

Agreements with Tajikistan and Turkmenistan were renewed in late November and early December, respectively.

In September 2019, Uzbekistan’s National Electric Networks signed a 10-year contract with DABS for electricity exports. At the time, deputy energy minister Sherzod Khodjaev stated that initial supplies would amount to 4.2 billion kWh annually, with plans to increase the volume to 6 billion kWh over time.

Uzbekistan has been supplying electricity to Afghanistan since 2002. Over the years, the volume of supplies has grown significantly, from 62 million kWh in the initial years to 2.6 billion kWh by the end of 2019. 

In 2023, Uzbekistan exported 1.82 billion kWh of electricity to Afghanistan, valued at $91.18 million (approximately 5 cents per kWh).