Attachment_J.1a_SOO_Annex_1_ABADE_Final_Report.pdf

Assistance in

Building Afghanistan by Developing Enterprises

Final Performance Report

October 16, 2012 – July 15, 2018

Submitted: July 14, 2018 ii ii

This publication was produced for review by the United States Agency for International Development (USAID). Its contents are the responsibility of the Volunteers for Economic Growth Alliance (VEGA) and the International Executive Service Corps (IESC) and do not necessarily reflect the views of USAID or the United States Government.

Submitted by:

Volunteers for Economic Growth Alliance (VEGA) 734 15th Street, NW, 11th Floor Washington, DC 20005

Prepared under Leader-with-Associate Cooperative Agreement No. EEM-A-00-04-00002-00, Associate Cooperative Agreement No. AID-306-LA-13-00001 USAID Afghanistan ABADE Program

VEGA Contact: Circey Trevant Director of Programs Volunteers for Economic Growth Alliance (VEGA) 734 15th Street, NW, 11th Floor Washington, DC 20005 Tel: (202) 367-9997 Email: ctrevant@vegaalliance.org

IESC Contact: David Hartingh Executive Vice President and Chief Operating Officer International Executive Service Corps (IESC) 1900 M Street NW, Suite 500 Washington, DC 20036 Tel: (202) 589-2600 Email: dhartingh@iesc.org

ABADE Contact: Zdravko Shami

Chief of Party Assistance in Building Afghanistan by Developing Enterprises (ABADE) International Executive Service Corps (IESC) mailto:ctrevant@vegaalliance.org mailto:dhartingh@iesc.org iii iii

Table of Contents List of Tables ................................................................................................................... iv

List of Annexes ................................................................................................................. v

List of Acronyms .............................................................................................................. vi

Executive Summary of the Accomplishments and Results Achieved

Overall Description

Component 1 Activities: Public-Private Alliances

Component 2 Activities: Technical Assistance and Business Advisory Services

Component 3 Activities: Business Enabling Environment

Summary of Problems/Obstacles Encountered During Implementation

Assessment of the Performance in Accomplishing the Project’s Objectives

Significance of Activities and Accomplishments

Description of Impact and Expected Sustainable Results

Cumulative Data for Numerical Targets

List of Project Documents and Other Reference Materials

Findings

Comments and Recommendations iv iv

List of Figures and Tables

Figure 1 - Program Components Table 1 - Public-Private Alliance Portfolio Table 2 - Public-Private Alliances by Province Figure 2 - Public-Private Alliances by Classification v v

List of Annexes

Annex 1 – Video Index of ABADE’s Public-Private Alliances in Action, 2012–2017 Annex 2 – Complete List of Training Annex 3 – Complete List of Public-Private Alliances and Descriptions Annex 4 – Beneficiary Survey vi vi

Acronyms and Abbreviations

ABADE: Assistance in Building Afghanistan by Developing Enterprises

ACD: Afghanistan Customs Department

AISA: Afghanistan Investment Support Agency

ASMED: Afghanistan Small and Medium Enterprise Development

BDS business development services

CLC: cellular lightweight concrete

CAD computer-aided design

ERF: Environmental Review Form

ERR: Environmental Review Report

ICT: information and communications technology

IEE: Initial Environmental Examination

IESC: International Executive Service Corps

LOP: life of project

M&E: monitoring and evaluation

MoCI: Ministry of Commerce and Industries

MoF: Ministry of Finance

MoMP: Ministry of Mines and Petroleum

MoWA: Ministry of Women’s Affairs

NGO: non-governmental organization

PPA: public–private alliance

RFA request for applications

SCEB: stabilized compressed earth brick

SME: small and medium enterprise

TAMIS: Technical, Administrative and Management Information System

USAID: United States Agency for International Development

VEGA: Volunteers for Economic Growth Alliance

Executive Summary of the Accomplishments and Results Achieved

The Assistance in Building Afghanistan by Developing Enterprises (ABADE) Program worked with the private sector in Afghanistan to strengthen its productivity, increase domestic and foreign investment in the country, stimulate employment, and improve the business enabling environment. ABADE’s public-private alliances (PPAs) with small and medium enterprises (SMEs) helped to reduce the risks involved in business expansion by procuring updated equipment, providing technical assistance and training, and requiring partners to invest a substantial percentage of the total partnership funds in order to guarantee commitment and improve the potential for sustainable success.

“We thank the people of the United States for implementing such projects in our country and hope their assistance will continue in the future. If there are more such factories, the raw materials, such as cotton and wool, now being exported to Pakistan for processing, will be processed in the country.”

— Menhajuddin Jalili, president of Abdul Saboor Alkozay Textile Factory in Jalalabad

ABADE achieved life-of-project (LOP) targets against all indicators and exceeded 12 of the 13, making a substantial impact on 518 SMEs in Afghanistan—104 percent of its goal to assist 500 SMEs during the course of the project.

ABADE had a robust SME outreach approach and very detailed PPA implementation process, both of which contributed to program success. With early outreach, including informational sessions in provinces throughout the country, and support such as application assistance, ABADE received 1,347 concept notes. From these applications, ABADE implemented 298 alliances with well-qualified enterprises: 270 SME alliances and 28 innovation alliances. The program’s commitment and adherence to a strict implementation process was crucial to the success of the alliances. With a comprehensive support package of equipment procurement, technical assistance, and training in bookkeeping, food safety, and marketing, ABADE alliance partners created a staggering 17,777 full-time equivalent jobs, exceeding the target by 19 percent. In addition, 268 firms improved their management practices as a result of the program, a 179 percent achievement of the target.

ABADE was very cost-effective and leveraged significant private investment. For every dollar of USAID assistance, $5.98 was invested by alliance partners, with more than $292 million invested in the Afghan economy, $250 million in partner funds and more than $41 million in USAID funds.

These investments, paired with technical assistance, helped to spur a 245 percent increase in sales at ABADE’s PPA partner firms, which is 1,225 percent of the LOP target. The boost in sales was the direct result of increases in production and the product expansion facilitated by new and/or upgraded equipment (and critical training on that equipment) received as part of the partnerships. Through the complementary training in sound bookkeeping practices, marketing, and general business skills, ABADE alliance partners are better able to track inventory, develop business and marketing plans, and identify and address workforce skill gaps to improve their potential for sustainable growth and success.

To address the needs and concerns of Afghan women entrepreneurs and employees, ABADE provided training in high value skills and developed alternative workplace models for women. In total, 274 women received training in information and communication technology, diagnostic imaging, computer-aided design, materials testing, and QuickBooks software and accounting, achieving 137 percent of the program’s target. Alternative workplace models, among them home-based employment, work-site child care options, and women-only offices and production areas, were put in place within 61 alliance partners, a 153 percent achievement of target.

In addition to forming PPAs and delivering technical assistance and training for alliance partners, ABADE addressed six specific industry constraints facing enterprises in Afghanistan’s complicated business environment, with a special focus on addressing constraints for women and youth entering the workforce and supporting women-owned enterprises. These six action plans were developed to identify and address constraints to starting and/or sustaining a business, looking at six key sectors:

carpets, construction materials, gemstones and jewelry, women’s SMEs, agribusiness, and marble mining and processing. With six constraints addressed by program completion, achieving 150 percent of the LOP target, ABADE provided the Afghan government, partners, and stakeholders with a detailed roadmap to continue improving its most crucial and profitable sectors.

One important constraint that was successfully addressed by ABADE is the exorbitant transportation cost faced by Afghan carpet producers looking to export their goods to a wider market. In cooperation with the Ministry of Commerce and Industry and Turkish Airlines, ABADE successfully negotiated a drastically reduced airfreight rate to Europe and the United States. The ministry signed the memorandum of understanding in 2016. This reduction in cost will help to

Ms. Halima Mosavoi tests the structural strength of construction materials during a laboratory activity as part of materials testing training.

sustain the growth of the lucrative carpet industry in Afghanistan, creating jobs and expanding the reach of quality Afghan exports.

By providing Afghan SMEs with the opportunity to procure better equipment and improved technologies, by addressing skill gaps with industry-specific training programs, and by supporting innovative enterprises that are changing the landscape of business in Afghanistan, ABADE has benefited 4,914,616 beneficiaries throughout the country, achieving 6,143 percent of the target of 80,000 beneficiaries.

Although enterprises in Afghanistan face a complicated business environment ahead, marked by issues in security, transportation, and government policy, programs such as ABADE ensure that locally-owned companies continue to build on their experience, fortitude, and well-earned success.

Video Spotlight

The Faces of ABADE

(click images to view video)

AsiaPharma, Manufacturer of Syringe and Medical Equipment Company https://drive.google.com/file/d/0B92aUNnUhMKvTTU2WEpMVV96VTQ/view?usp=sharing https://drive.google.com/file/d/0B92aUNnUhMKvNWRQRExLUS12WG8/view?usp=sharing

Overall Description

Beginning on October 16, 2012, the International Executive Service Corps (IESC) began implementing the Assistance in Building Afghanistan by Developing Enterprises (ABADE) program under the Volunteers for Economic Growth Alliance (VEGA) Leader-with-Associate Cooperative Agreement No. EEM-A-00-04-00002-00, Associate Cooperative Agreement No. AID- 306-LA-13-00001. The project was originally scheduled to close on October 16, 2016 but received multiple no-cost extensions and was completed on July 15, 2018, which allowed the project to implement and close out additional public-private alliances. This final report covers the entire agreement period. IESC was the lead implementer of the ABADE program, joined by Land O’Lakes International Development and DAI. Under this agreement, VEGA and IESC supported USAID’s Development Objective 4: “A developed business climate that enables private investment, job creation, and financial independence by helping small and medium enterprises (SMEs) grow their businesses.”

Less than three months after the program was awarded, IESC had mobilized and was ready to begin program operations. The three technical components were staffed and fully functional as of February 2013 and the regional offices were set up by May of that year. Adopting best practices from the earlier Afghanistan Small and Medium Enterprise Development program, IESC was able to quickly launch ABADE technical activities.

Approach

The ABADE program was organized into three components (Figure 1): to develop and implement public-private alliances (PPAs), provide technical assistance and training, and improve the business enabling environment in Afghanistan. ABADE placed special emphasis on addressing constraints for women and youth entering the workforce and in supporting women-owned enterprises.

Figure 1 - ABADE Program Components

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Through its three components, ABADE focused on four main activities:

• SME alliances: Under these PPAs, capital was provided to existing SMEs or business alliances through a competitive application process. The Afghan business partners were required to invest at least twice the amount of USAID’s contribution to ensure commitment to the activity and improve the chances of sustainable success.

• Innovation alliances: To stimulate innovation, these PPAs provided capital for new business ideas through a competitive application process. The Afghan business partners were required to invest an amount at least equal to the USAID contribution (See Table 1 for a summary of the PPA portfolio).

• Technical assistance and business advisory services: ABADE provided technical assistance and business advisory services to SMEs, sub-award recipients and other key stakeholders in areas such as accounting, marketing, access to finance, meeting quality standards, environmental compliance, and use of specialized production machinery.

Special focus was placed on women entrepreneurs and ABADE’s PPA partners.

• Business enabling environment: ABADE worked closely with the Afghan Ministry of

Commerce and Industries (MoCI) to improve the business climate by identifying and addressing regulatory and procedural barriers that affect a private enterprise’s ability to compete. After working with private and public sector to create five-year, industry-specific action plans for the agribusiness, marble, gemstones and jewelry production, construction materials, carpets, and women-owned SMEs sectors, ABADE assisted stakeholders with the implementation of priority initiatives identified in the action plans.

Table 1 - ABADE PPA Portfolio

ABADE PPA Portfolio Number of PPAs

ABADE

Contribution

Partner Contribution

Total Investment

Overall results

Total PPAs 298 $41,840,322 $250,208,215 $292,048,537

USAID/PPA partner leverage ratio 1:5.98

PPA category

SME PPAs 270 $33,407,371 $211,995,164 $245,402,535

Innovation PPAs 28 $8,432,951 $38,213,051 $46,646,002

Component 1 Activities: Public-Private Alliances

1.1 Prepare and Launch Requests for Applications

At the beginning of implementation, the ABADE team developed a comprehensive PPA manual.

The manual included instructions on the review process, creating a selection committee, 6 6 assessment procedures, and selection criteria and scoring values. ABADE developed two different requests for applications (RFAs) for both SME and innovation PPAs and released them beginning in December 2012 with dates staggered for the two types of PPAs in order to prevent confusion among applicants.

In the second quarter of year one, ABADE prepared and released a call for expressions of interest under “Creating Jobs and Opportunities for Women,” which helped to identify potential innovation alliance partners. It was distinguished from the innovation alliance in that it specifically targeted women-owned or -managed enterprises, which were often less structured or did not strictly meet the PPA criteria. ABADE continued to conduct direct outreach and communication to women entrepreneurs and business associations serving women in order to identify potential partners.

With lessons learned from the first six months of the program, the technical team reviewed the concept note and PPA process in July 2013 and revised the manual to reflect a streamlined alliance development process. RFAs under the improved process were released in October 2013, with subsequent rounds in October 2014 and 2015.

1.2 Implement Outreach Campaigns

In order to identify quality applicants from the business community across Afghanistan, ABADE went on the road, delivering presentations in Kabul, Herat, and Mazari Sharif throughout February and March of 2013. With assistance from Land O’ Lakes, ABADE held workshops to assist SMEs with preparing applications and concept notes. The writing workshops were particularly important for identifying qualified applicants and carefully guiding them through the application process, specifically where language and literacy issues were at play due to Afghanistan’s low literacy rate. The technical team conducted one-on-one idea development sessions, in person and over the phone, to help bring successful applications to completion.

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1.3 Set Up Regional Offices to Assist in the Development and Implementation of PPAs in Herat, Mazari Sharif, and Jalalabad

In addition to operations in Kabul, ABADE established two regional offices to service businesses in the northern and western regions of the country. The offices in Herat and Mazari Sharif were opened in 2013 and 2014, respectively, along with a satellite office in Jalalabad. These offices developed and implemented PPAs in those areas and allowed the program to extend its reach across Afghanistan (See Table 2 for geographic distribution of PPAs).

Security in the region began to deteriorate significantly after U.S. Forces started their drawdown in 2013, putting a strain on ABADE activities in the provinces and causing delays in the delivery of equipment and training to areas outside of Kabul. Under these circumstances, having the regional offices made it possible for ABADE assistance to flow well beyond the capital, supporting important sectors such as agribusiness and marble production in cities and rural areas throughout the country.

1.4 Develop and Implement SME and Innovation Alliance PPAs

The main focus of Component 1 was to implement the approved and signed PPAs, including both SME alliances and innovation alliances. The PPA process was thorough and intense and required working closely with alliance partners to identify and procure industry-specific equipment and address any technical and training assistance required to improve the business outcome for SMEs.

SME Alliances

To improve and develop its export capacity, Afghanistan must develop the infrastructure required to manufacture value-added goods from its raw materials. In industries such as marble, construction, and agriculture, local resources are being exported from the country only to be processed into value-added products and sold at increased prices, often right back to the Afghan market. Afghan businesses and workers rarely benefit from this relationship, but without access to the proper equipment or technical assistance, value-added manufacturing continues to be out of reach for many sectors in the country. ABADE identified SMEs that could benefit from updated value-added processing equipment and provided investment assistance to 270 SME alliances throughout Afghanistan (See Figure 2 for breakdown of alliances by classification).

Table 2 - PPAs by Province

Location of Business Number of PPAs

Badghis 1

Baghlan 1

Balkh 60

Herat 66

Jawzjan 6

Kabul 104

Kandahar 3

Nangarhar 56

Samangan 1

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One example is pomegranates. Afghanistan grows more varieties of pomegranates than any place in the world, including the large and especially juicy Kandahari pomegranate, but historically, much of the country’s fruit has been exported and processed into juice by foreign companies, leaving Afghan businesses and farmers cut out of the profits from value-added products.

Afghan Red Pomegranate opened in 2013 and managed annual sales of 20,000 tons of fresh pomegranates grown by local farmers. Without processing equipment, Afghan Red—and businesses like it—could only operate and employ their workers during the four to six months that the fruit was in season.

ABADE helped the Kandahar-based company to procure a plate-type pasteurizer and aseptic filling machine for processing and packaging pomegranate and other juices. In early 2016, the first juice began rolling off the production line at the rate of 10,000 to 15,000 liters per month.

At full production, the firm could process three tons of pomegranates per hour. The 100 percent juice line became the first of its kind in Afghanistan and includes pomegranate, apple, and grape varieties, all sourced from Afghan fruit and therefore supports local farmers.

Since the partnership with ABADE, Afghan Red Pomegranate has experienced a staggering sales increase of 7,700 percent, and 47 new workers have been hired for year-round employment. As production ramps up to full volume, the business expects to hire an additional 70 employees.

Afghan Red Pomegranate employees conduct a quality assurance check on the 2016 crop of Kandahari pomegranates.

Figure 2 - PPAs by Classification

SME

Innovation Alliances

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“This job offers me skills that are developing into new roles and the salary also helps me support my family.”

— Ismail Hotak, a new employee at Afghan Red Pomegranate

Another example is scrap steel. Afghanistan has historically exported its scrap steel for pennies on the dollar, only to have the steel return as rebar that is sold locally at exorbitant prices.

Transporting the heavy steel bars across the border is not without challenges, including high transport costs and border and road closures that lead to shortages and delays in construction projects throughout the country.

With Kabul’s population climbing and the country experiencing ten significant earthquakes in the last fifteen years, the importance of new construction that is reinforced with rebar is crucial—the reinforcing bars act like a skeleton, allowing the concrete to flex and withstand more tension than it ordinarily could.

Kabul’s Mahmoud Star Steel Mill partnered with ABADE to purchase a rolling mill, furnace, and crane, putting 279 new employees to work turning scrap steel into high quality rebar. The partnership included the installation of an emission control system to protect workers from gases emitted during production. Sales have increased by 3,190 percent and the project has begun to reduce Afghanistan’s dependence on imported rebar for local construction projects.

In most of the SME alliances, ABADE provided first and foremost the necessary equipment to undertake the value-added production activity. The assistance was complemented by personal safety equipment, training in management skills, technology, and food safety where required.

Due to the particular and varied requirements of each sector, identifying and procuring the appropriate equipment for each PPA required industry-specific knowledge. A pool of qualified consultants provided valuable assistance in identifying appropriate equipment for complicated production lines, a resource that many Afghan businesses would not have had access to otherwise.

PPA partners committed their existing resources to the business expansion project and were generally responsible for site preparation, hiring and training staff to operate the new equipment, and implementing upgrades to their facilities. ABADE conducted periodic monitoring to ensure deliverables were on track and that environmental compliance issues were being addressed, as set forth in the alliance agreement.

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Over the course of ABADE, more than $293 million was invested in the Afghan economy. The title for all acquired equipment was transferred to partners during the closeout procedure of each PPA. ABADE’s implementation and monitoring and evaluation (M&E) teams continued to monitor firm operations and verify the use of the equipment for up to 90 days after closeout, providing the partner with ample time to ensure proper functioning of the equipment.

Along with monitoring job creation and sales at closed-out PPAs, ABADE continued to check on the status of equipment turned over to partners and provided referrals or information on equipment maintenance services providers on an as-needed basis.

Afghan Steel Mill Forges New Employment Opportunities in Kabul

Mohammad Ibrahimi Waziri’s parents fled Afghanistan during the Soviet-Afghan War, seeking a more peaceful life in Quetta, Pakistan.

Despite the ongoing tensions in their homeland, the draw to return was strong, and the family moved back to Kabul in 1998 to start up an iron foundry and steel mill.

Khan Engineering produces manhole covers and agricultural irrigation products and provides repair and maintenance services for other factories in the region.

As the Civil War in Afghanistan raged on, Hajji Khan Waziri found it increasingly frustrating that local steel was being smuggled into Pakistan instead of melted down for use in rebuilding the country’s infrastructure. Scrap steel can be melted and folded to produce reinforcing bar (rebar), an important part of building safe structures, particularly in a seismically active zone such as Afghanistan. Most of the country’s rebar was being imported from neighboring countries, increasing the cost of construction projects due to rising transportation fees and reducing the opportunity to create jobs by manufacturing the products locally.

With the support of the ABADE program, Khan Engineering secured the equipment they needed to reduce waste and create local jobs.

“Prior to ABADE’s assistance, we had many problems in terms of machinery. We had an outdated production line and a limited capacity,” explains 29-year-old Mohammad Ibrahimi Waziri, managing director at Khan. “Previously, one in ten of our steel bars were being wasted because of low quality, but [after ABADE’s assistance] that number has decreased to almost one in thirty.”

As a result of the increase in production and decrease in wasted steel, the business has tripled its staff, hiring an additional 170 new employees from the local area. Profits have increased a staggering 1,025 percent, from $80,000 to $900,000.

Production is underway at Khan Engineering’s iron foundry and steel mill.

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“When I see demand for our products in the market, people are happy from our products, our staff members are happy for working with us, that is when I feel relaxed, happy, and proud. My business changed my life a lot, now I build my own house everything I have in life now is from my business.”

— Aziza Mohamed, president of Muska Ball and Leather Production Company

Innovation Alliances

ABADE’s innovation alliances supported nontraditional businesses with capital to launch new business ideas and undertake innovation-focused activities. Through a competitive application process, ABADE sought investments that expanded the role of women and youth in business, promoted pro-poor growth, and increased value-added productivity in strategic industries. To encourage innovation, the Afghan investment requirement was lower than for SME alliances, in most cases an amount at least equal to ABADE’s contribution, but each was evaluated and determined on an individual basis, since these applications presented feasible innovative business ideas but did not always meet the strict criteria required of the majority of ABADE’s SME partners.

In several cases, ABADE’s innovation alliances addressed crucial gaps in medical testing and health care and have the potential to improve health access and outcomes for thousands of Afghans. Kabul‐based Arif Azim Logistic Services Company, for example, recognized an opportunity to streamline and modernize access to medical testing in the country. The firm sought to establish Afghanistan’s first modern, robust, distributed pathology laboratory. In partnership with Star Imaging and Pathology, a widely respected laboratory services provider in India, Arif Azim contributed to the partnership a sperm quality analyzer, an erythrocyte sedimentation rate analyzer, laboratory equipment, equipment for new sample collection centers, generators, ambulances, and land and construction costs to the investment partnership. After ABADE contributed a variety of pathology lab equipment, Arif Azim opened ten collection centers in neighborhoods across Kabul, with each location staffed by three trained staff members. Samples are collected from patients and securely stored until they are picked up and transported to the main center for daily processing. Samples requiring more complex testing are shipped to India for further analysis by doctors and specialists.

The turnaround time for testing has been greatly reduced, and the company developed a standard framework for transferring results and medical records to medical providers, thus limiting the need to pay for repeat tests and reducing the financial burden of providing quality healthcare.

Arif Azim has hired 385 new employees from the local area and is creating a skills development center to continue training pathologists and laboratory technicians.

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Once fully operational, the collection centers are expected to see 20,000 patients each month, with the potential to provide 240,000 Afghans a year with local access to testing that many previously had to travel abroad to receive.

More than 300,000 patients at 40 hospitals will benefit from the oxygen gas tanks produced and distributed by Said Walid Agha Oxygen Gas Production Company in Jalalabad. Afghanistan had relied solely on imported oxygen sold at high prices, due in part to soaring transportation costs associated with the heavy tanks. Due to high interest rates and short repayment periods from local lenders, the company had not been able to get the financing required to set up production.

Through the investment partnership with ABADE, this Afghanistan Investment Support Agency-registered business has begun producing oxygen gas through cryogenic distillation and providing a reliable local supply of pure oxygen for patient treatment.

The company has hired 79 full-time employees that serve approximately 4,000 patients per month at 40 hospitals throughout the country.

Composting:

A Squiggly New Adventure

Hakima Zolfaghari started Green Organic in May 2013. It is the first vermicomposting enterprise of its kind in Afghanistan.

To bring her dream to reality, Hakima presented her business plan to two USAID projects, IDEA/NEW and ABADE, both of which helped her get her business off the ground. IDEA/NEW assisted Hakima with the technical aspects of vermicomposting, helped her construct the composting beds, and taught her how to care for the worms.

At the same time, Hakima brought her business idea to ABADE, which found her idea to be innovative, sustainable, have the potential to scale, and provide economic opportunities for women. In return for a matching investment of capital, land, and manpower, ABADE provided material inputs and equipment to Green Organic. This included 400 kg of worm for composting, which were delivered to Green Organic in early November 2013. The farm has an area of 450 sqm, enough capacity to produce 100 tons of vermicompost a year.

“We have started operations,” Hakima said with enthusiasm and pride. “I hope this venture will be the start of a new industry in Afghanistan that will significantly reduce imports of chemical fertilizers while sustainably managing waste and providing women with a viable livelihood option.”

Composting beds at the Green Organic farm are ready for seeding with worms and organic waste.

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786 Pharma in Kabul is working to provide Afghans a safe alternative to the flood of fake prescription medications being sold in the country’s loosely-regulated pharmacies. Doctors prescribe the proper medications for sick patients, but fraudulent medication, untrained pharmacists, and unexpected side effects are putting many Afghans at risk.

Through the investment partnership with ABADE, 786 Pharma is determined to make high quality, authentic medications accessible to Afghans through a chain of pharmacies with trained pharmacists at the helm. The company has been able to harness their previous experience in the pharmaceutical industry to focus on quality assurance, setting up relationships with reputable international wholesalers that supply seven pharmacies, with 20 additional shops slated to open over the next few years. The ABADE partnership focused on creating employment opportunities for women, with the company hiring female employees for their main office as well as a female pharmacist for one of their stores.

Three of ABADE’s innovation alliances addressed recycling and waste management issues, which are important concerns as the country continues to develop. With consumer waste piling up in and around Afghanistan’s growing cities, entrepreneurial Afghans have begun opening recycling facilities in the region. With ABADE’s assistance, Kabul’s Clean World Recycling Industrial Company procured new equipment to begin recycling the multitude of scrap tires and plastic waste that litters Kabul’s hillsides and streets. The new production line uses an environmentally sustainable process called pyrolysis to decompose scrap tires for use in making fuel and scrap steel. As of December 2016, Clean World was ready to begin production and expected to hire 92 full-time employees.

Employees fill oxygen tanks for local hopsitals at Said Walid Agha Oxygen Gas Production Company in Jalalabad.

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Female Pharmacist Prescribes Change in Afghanistan’s Capital

Bibi Safia is not your average pharmacist. The realities of pursuing a career in pharmacy as a woman in Afghanistan are often times harsh and potentially dangerous. Much of Afghan society is against women working outside their homes and alongside men, and the effect on the family’s reputation, as well as safety concerns for the woman herself, make it a viable option for only the most driven of women.

“At the beginning, my parents were telling me not to study pharmacy, because I wouldn’t be able to work with men in a pharmacy. But after they saw my courage and me volunteering at a pharmacy, their confidence in me increased. They told me, ‘You can continue your work,’” Safia explains while standing behind the counter at 786 Pharma in Kabul.

The 22-year-old Kabul University graduate is not only paving the way for other female pharmacists but is helping support her husband while he completes his own degree in pharmacy. Safia feels that Afghan women lack role models for women in the workplace. “I think 50 percent of the women who want to become pharmacists cannot find someone to inspire them. Some of them have a lot of self-confidence, as I have, and don’t care what people think about them. I believed my decision to become a pharmacist was right, so I pursued, and now work without any problem, while also wearing the hijab.”

Assisting her fellow Afghans and contributing to her family’s financial future has been a source of great pride for Safi. “Through my salary, I support my family and also pay the rent of my house and the university costs of my husband.”

Safia hopes her 11-month-old daughter will consider a career in medicine when she grows up, and that the young mother will be able to pass along her belief that women are just as capable as men. “I don’t see any difference between myself and male pharmacists. I feel very comfortable working with them and also don’t think I am less than them.”

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Malika and Refa Environmental Solutions is a woman‐owned enterprise, founded in 2013, that the Afghanistan National Environmental Protection Agency has approved to transport, compost, and recycle solid waste. The company was awarded a contract to remove the organic waste generated at Bagram Airfield in 2014.

Malika and Refa applied to the ABADE program to support their plan to turn organic waste into agricultural fertilizer for Afghan crops. With the potential to address Afghanistan’s growing food waste and also support agricultural production, this innovation partnership was a win-win.

ABADE assisted with procuring composting equipment and provided technical assistance to develop, test, and analyze composting recipes that would produce a high-quality and marketable fertilizer product. Malika and Refa has created more than 55 direct jobs since the ABADE partnership, with half of those jobs being filled by women.

Component 2 Activities: Technical Assistance and Business Advisory Services

Technical assistance was a critical component of the ABADE program. From identifying the most appropriate equipment for the activities outlined in the investment alliances to training management and staff on the use of the equipment, targeted technical assistance contributed to the success of the enterprises supported. Assistance in the form of training played a significant role in improving the financial accounting and management practices of participating businesses. In addition, ABADE committed to providing women-focused training, with an emphasis on training in high-value skills.

Component 2 was divided into pre-award and post-award services. Pre-award services included technical assistance with business plan development, particularly focusing on financial reviews, marketing, and budgeting. Conducting a feasibility study or marketing assessment are examples of pre-award technical assistance.

Post-award services focused on industry-specific technical skills training and management and staff training to aid in the implementation of the PPA. Included in the PPA package was technical assistance to improve management practices and ensure the successful operation of new equipment, increasing the likelihood of success for the business. Environmental compliance was also an important part of post-award assistance.

Workers from Malika and Refa Environmental Solutions separate the recyclable portions of waste gathered from the Bagram Air Field.

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2.1 Development of SME and Innovation Alliances

In August 2013, the ABADE Component 2 team began developing concept notes into full applications, in preparation for committee review. This function was transferred over from Component 1 after an internal review of procedures, to ensure a more efficient use of human resources in all components. Because both components had a role in PPA implementation activities, there was significant overlap between the two components.

In coordination with the Component 1 team, the Component 2 team continued to hold concept note writing workshops, and activity that proved extremely effective. The number of concept notes received rose from an average of three per week at the beginning of the project to almost 20 per week by the close of year one.

To identify potential alliance partners in underserved sectors, the ABADE team coordinated its outreach with key stakeholders: MoCI, Ministry of Women’s Affairs (MoWA), Chambers of Commerce, industry groups and associations, women’s business unions, private financial institutions, USAID implementing partners, and other development organizations.

In addition, ABADE targeted businesses geographically, focusing on those in the industrial zones of Kabul, Herat, Mazari Sharif, and Jalalabad (also where ABADE offices were located), and conducted outreach activities in the provinces of Jawzjan and Samangan.

2.2 Prepare Support Systems for Alliance Partners and Relevant Actors

ABADE used DAI’s proprietary software, the Technical, Administrative and Management Information System (TAMIS) to track, manage, and report on PPAs. This robust system allowed the program to efficiently document and manage all procedures, steps towards implementation, decisions, approvals, and human resource activities. A capital investment form used for developing PPA budgets was integrated into TAMIS and helped improve equipment cost estimates and significantly shortened the time to develop each PPA. The efficiencies built into the TAMIS system increased the pace of PPS submitted to USAID for approval.

2.3 Develop Business Development Services Packages

Knowing the technical assistance that would be needed by the SMEs, ABADE created a nationwide map and inventory of available consulting services in Afghanistan to identify existing business development service (BDS) providers and profile their activities and experience. A local firm was contracted to design and implement a survey of these providers in year one and results were analyzed in year two. They surveyed 511 BDS

17 17 providers and 226 SMEs, with a strong focus on the marble, gemstones, carpet, construction, and food processing sectors. The survey results informed ABADE’s efforts to help BDS providers improve the quality of their services and identified training needs for SMEs that were not currently offered in Afghanistan.

ABADE conducted two workshops for BDS providers. The first, BDS Capacity Building, was held in March 2013 for 28 participants, and the second, establishing a BDS Company and Promoting BDS Services, was conducted in May 2013 for 82 participants. The workshops focused on developing the BDS providers’ service capability and sensitivity to the market in order to promote their relevance and long-term sustainability.

2.4 Develop and Conduct Women-Focused

Training

An important objective of Component 2 was to facilitate women’s participation in the workforce, and in particular, their entering and advancing in non-traditional sectors by offering training in information technology, engineering, and finance.

Gender Baseline Survey Completed in March of 2013, ABADE’s Gender Baseline Survey sought to determine the status of women’s entrepreneurship in Afghanistan, which would inform the development of alliances, especially innovation alliances, and identify technical assistance and training to help women entrepreneurs succeed. The survey was sent to 18 agencies, associations, cooperatives, and organizations, and 625 businesses. ABADE received responses from 10 entities and 165 companies, a response rate of 27 percent. The survey found that only 11 percent of the businesses had ever applied for a loan and less than 30 percent of firms had a bookkeeping system in place. 37 percent indicated that they needed training in proposal writing and in financial, marketing, and management skills.

Computer Networking Training Benefits Afghan Women

In 2015, ABADE provided a computer networking training course for women interested in pursuing a career in this field.

The training prepared students to complete the Cisco Certified Network Associate examination, certifying a technician's ability to install, set up, configure, troubleshoot and operate a medium-sized routed and switched computer network.

The 120 hours of training took place between August and October of 2015. A total of 19 women, all IT students and recent graduates, completed the course, 15 of whom successfully passed the mock CCNA exam and qualified for ABADE support in covering the costs of the official CCNA examination. In December 2015, 13 of the graduates took the online exam. Nine women passed and obtained the CCNA certificate, an internationally recognized proof of acquired knowledge and skill.

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Gender Strategic Action Plan From the Gender Baseline Survey, ABADE wrote the Gender Strategic Action Plan Afghanistan 2013. This living document was continually updated as practical information was collected throughout the course of the program. The document aided in ABADE’s approach to developing PPAs involving women-owned businesses and helped to identify and prioritize specific training courses for women in high value skills.

High Value Skills Training for Women in Afghanistan Guided by the Gender Strategic Action Plan, the Component 2 team prepared a training package for women. The offerings were meant to address the gap between current skills and skills that help Afghan women improve their position in the workforce or start businesses. These training programs focused on high value skills, defined as technical skills that enable women to advance in nontraditional sectors trade skills that provides flexible work hours and work locations. The training included accounting and business systems, website development and graphic design, engineering, diagnostic imagery, computer networking, human resource management, and digital marketing.

A cornerstone of the high-value skills training was medical diagnostic imaging training, including CT, ultrasound, and mammography. In the first quarter of 2016, ABADE selected a training provider to establish a sustainable training program in diagnostic imagery that meets worldwide standards. First, six Afghan technicians, two in each discipline, were trained as master trainers in India at an organization accredited by the Joint Commission International. Upon their return to Afghanistan, the newly certified trainers piloted three training courses for technologists in Kabul, in CT, ultrasound, and mammography.

The CT course, held in April and May 2016, comprised more than 120 hours of classroom instruction and practical examinations. Prior to the course, trainees were given an online, multiple-choice pre-assessment to establish baseline knowledge and in order to evaluate the effectiveness of the course. The course covered anatomy and structural identification, in

19 19 addition to a general understanding of CT and its use. A physician specialist was brought in for additional support on the anatomy training and added depth to the course material. After a week on anatomy, the remaining three weeks were a combination of classroom and practical training using two different CT machines. Due to high interest in the training, the 10 female participants were joined by two men. All 12 participants passed the final assessment developed by Apollo Medskills, an Indian organization accredited by the Joint Commission International.

The ultrasound and mammography courses were piloted in August 2016 and were equally successful, based on a similar evaluation procedure. The ultrasound training lasted three weeks, and the mammography training took two weeks. Both were a combination of classroom and practical training. Trainees in both courses were split into two smaller groups to facilitate practical training, as technician rooms in most hospitals and diagnostic facilities are too small to accommodate 12 people. The last day of training was reserved for the final assessment, which consisted of a written examination requiring the trainees to write out a complete patient protocol, and a practical part which required the trainees to use radiology workstations to identify and annotate findings based on an actual case. All 25 trainees, 13 in ultrasound and 12 in mammography, passed the courses.

Trainees scored an average of 84 percent on the mammography final compared to an average of 52 percent on the pre-assessment.

ABADE also conducted a medical laboratory technician course, prompted by a workforce assessment conducted by the USAID-funded Afghan Workforce Development Program.

revealing shortage of trained medical technicians in the country. ABADE’s training was based on the methodology and globally accepted curriculum presented in the World Health Organization’s Manual for Good Laboratory Training, including Quality Laboratory Management.

Each of the 24 female participants received 240 hours of instruction over 48 days. The course had 10 modules, each with theoretical and practical components. The modules were the following: lab safety and security, parasitology, bacteriology, hematology, serology, virology, biochemistry, urology, reagent preparation, and mathematics.

As with the CT and mammography courses, participants were given an exam at the start of the program and at the end of each module. The learning was exceptional, with trainees receiving an average grade on the entry exam of 30 percent and average of 95 percent on the exit exam, with 16 women scoring 98 percent or above.

All of the high value training courses for women ranged from 15 to 45 days and benefited a total of 274 women, achieving 137 percent of the LOP target.

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2.5 Provide Demand-Driven Training

To develop and deliver demand-driven training, ABADE worked closely with businesses to identify the skills they require from their workforce, thus improving the chance of success for both businesses and their employees. As ABADE developed and processed PPAs, the technical team identified training needs by thoroughly assessing the partner enterprises and observing their current processes.

ABADE recognized the need to support SMEs with improved business skills in order to sustain the growth experienced as a result of program assistance. The SME assessments revealed that the majority of PPA applicants were still using single-entry or cash-basis accounting, an insufficient method for keeping record of a company’s financial standing and inventory. ABADE developed training manuals and workshops to address skill gaps to improve financial management, business management, marketing, and workforce development.

One of ABADE’s most requested training courses—double-entry accounting—was held eleven times, assisting 275 participants in Herat, Mazari Sharif, and Jalalabad. Along with ABADE’s popular QuickBooks software training courses, this training directly addressed the lack of formal accounting processes in many of Afghanistan’s SMEs. The training was regularly requested by

Ultrasound Training for Women Benefits Patients

A pediatrician by training, Dr. Hamasa Azimi had been seeking opportunities to broaden her technical expertise and grow her career.

Her search led her to specialized ultrasound training in Kabul that gave her the skills she needed to land her dream job.

Dr. Azimi was one of 24 participants of the Basic Ultrasound Training arranged by ABADE in collaboration with Ariana Hospital. The training, which took place in 2015, was designed to help fill the need for trained medical technologists in Afghanistan. A study conducted by USAID’s Afghanistan Workforce Development Project identified a tremendous opportunity to expand Afghanistan’s medical capacity through professional development.

Dr. Azimi knew the training would make her a more attractive candidate for specialized positions in the medical field and give her the opportunity to work with women in her community.

“This was the kind of training I wanted. Ultrasound is a common diagnostic procedure for women but very few female doctors are qualified to do this.