Islamic Republic of Afghanistan

 

 

 

The Ministry of Commerce and Industries – introducing its new Private Sector Development (PSD) Directorate

 

The Private Sector Development (PSD) Directorate within the Ministry of Commerce and Industries has been established. The main task of the Directorate is to provide PSD policy development, implementation and monitoring within the Ministry. The MoCI in turn, will have responsibility for guiding and co-coordinating PSD policy across government, ministries and agencies, to encourage the development of a flourishing private sector delivering economic growth and reducing poverty. The PSD Directorate will have five key areas of responsibility:

 

·       Enabling private sector investment, in particular by making the regulatory system more effective and efficient;

·       Promoting formalisation of the economy;

·       Encouraging innovation and competitiveness;

·       Developing functioning markets;

·       Promoting a shared stakeholder vision for PSD

 

These responsibilities will be divided between three departments, as follows:

 

Investment Policy Department (IP)

The department’s objective will be to contribute to significant and sustained growth in productive domestic and foreign investment in the economy. To achieve this objective, the department will:

·       Work to reduce the regulatory burden on the private sector while at the same time achieving the goals of these regulations;

·       Work within the Ministry of Commerce and with other Ministries to promote institutional reform so as to enhance the government-private sector interface;

·       Coordinate with AISA to provide information to the private sector to facilitate productive investment.

 

Market and Business Development Policy Department (MBD)

The department’s objective is to encourage the development of market conditions within which competitive Afghan businesses can grow, and seek to create a business environment in which there is a competitive advantage to operating in the formal sector. Towards this objective, the department will:

·       Demonstrate opportunities for productive investment by analyzing value chains, identifying and removing obstacles to value creation;

·       Identify incentives and disincentives to formalization and developing a package of measures to encourage greater formalization of the Afghan economy;

·       Improve access by Afghan firms to public contracts;

·       Facilitate the development by Afghan businesses of skills and knowledge needed to compete effectively;

·       Encourage the creation of a sustainable market for business development services.

 

Private Sector Development Outreach Department (PSDO)

The objective of the PSDO Department is to promote effective dialogue between the MoCI and other PSD stakeholders and seek to develop a “shared stakeholder vision” on the role of government in a free market economy. Using communication channels effectively and adopting a systematic approach to dialogue, the department will:

 

·       Help develop a wider public understanding of the role of the private sector and the benefits that can flow from economic growth based on private sector-led development;

·       Provide the Ministry with a better understanding of the views and priorities of the private sector;

·       Disseminate information on PSD policy and reform programmes;

·       Coordinate with other Ministries that include a PSD-related mandate, to ensure effective implementation of PSD initiatives.

 

The PSDD will be based in Kabul but will also operate through a network of regional offices.

 

PSD Directorate’s New Director Appointed

 

Mr Hafezullah Wali Rahimi has been appointed the new Director of the PSD Directorate. Mr Rahimi has had a long career in both business and government and is well placed to take on this key role. Mr Rahimi was formerly Director of Afghanistan National Standards Authority (ANSA) based in the Ministry of Commerce and Industries. Prior to that, he obtained undergraduate and Masters degrees in Economics in India, at Delhi University, and began work on his PhD on the topic of the role of the private sector in a developing country. His international business experience has included many years in the trade and electronics sectors in Canada, followed by experience in the film industry in Afghanistan. He then served as Vice-Chair of the Board of Directors of the Export Promotion Bank of Afghanistan, where he is currently Chairman.

 

PSD Directorate staff are currently undergoing a capacity building programme that includes a number of cross-cutting themes for the entire directorate staff, as well as a follow-on training program specifically aimed at each of the PSDD’s three departments.

 

For more information about the PSD Directorate and its activities, please contact:

 

Mr Hafezullah Wali Rahimi

Director, PSD Directorate

Ministry of Commerce and Industries, Kabul

Tel: 0799 313330; email: walirahimi_KBL@yahoo.com

 

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