1. Afghanistan has a population of 30.6 million people and its capital and largest city is Kabul. The country has a strategic location between Central Asia and South Asia and is rich in natural resources like minerals and precious stones. 2. Ashraf Ghani Ahmadzai was elected president after months of disputes but formed a unity government with the former foreign minister Abdullah Abdullah, who was appointed Chief Executive Officer. 3. Key industries for investment in Afghanistan include agriculture, construction materials, telecommunications, and transportation and logistics due to the country's growing markets and low costs. Cultural etiquette like modest dress, use of the right hand for eating, and avoiding direct eye contact with women are important.

2. Quick facts
 Location: within
South and Central
Asia
 Capital and largest
city: Kabul
 Religion: Islamic
 Population: 30.6
million
 Currency: Afghani
 GDP: $35.1 billion
 GDP per capita:
$1,150
 Unemployment:
8.5%
 Inflation (CPI): 7.4%
 FDI Inflow: $69.3
million
 Public Debt: 6.1% of
GDP

3. Political aspects
 Ashraf Ghani Ahmadzai is Afghanistan’s new
president after three months of political disputes
between Ghani and Abdullah Abdullah, the former
Afghan Foreign Minister.
 The two agreed to form a unity government in
which the President Ghani, who won the election
according to Afghanistan’s Independent Election
Commission, has to share the power with
Abdullah, who was named Chief Executive Officer.

4. Ashraf Ghani Ahmadzai Abdullah Abdullah

5. International Organization
Membership
 Group of 77 (G77)
 International Bank for
Reconstruction and
Development (IBRD)
 International
Development
Association (IDA)
 International Monetary
Fund (IMF)
 International
Telecommunication
Union (ITU)
 Organization for
Security and
Cooperation in Europe
(OSCE)
 United Nations (UN)
 United Nations
Conference on Trade
and Development
(UNCTAD)
 United Nations
Educational, Scientific,
and Cultural
Organization (UNESCO)
 World Trade
Organization (WTO)

7. I. Meeting and Greeting
 The handshake is the most common form
of greeting
 Women and men will never shake hands
and they don’t speak directly to one
another
 Eye contact should also be avoided
between men and women

8. II. Mixing between genders
 In professional situations such as in
businesses or universities, males and
females may be co-workers
 Foreign females must learn to read the
rules and live by them.
 If a man speaks to a woman directly in a
social context, he is dishonouring her

9.  Women must always dress properly to avoid
unwanted attention
 On the other hand foreign men should note
that it is inappropriate to initiate social
conversation with a woman
 Men and women should never be alone in
the same room. If this happens you should
ensure a door is left open.
 Men and women should never touch one
another under any circumstances.

10. III. Gift giving etiquette
 First rule of gift giving is to never give alcohol.
 The first time you go to someone's house for tea,
it is appropriate to bring a small gift.
 If you are invited to lunch or dinner, bring fruits,
sweets or pastries. Make sure the box is wrapped
nicely.
 When bringing a gift be subtle in how it is given.
Do not immediately give the present but rather
discreetly place it near the door or where you sit
down.

11. IV. Dining Etiquette
 Always remove your
shoes at the door if
visiting a home.
 If eating at someone's
home, you will be seated
on the floor.
 Food is generally served
in common and everyone
will share from the same
dish.
 Do not eat with the left
hand.
 Always pass and
receive things using
your right hand too.
 Food is eaten with the
hands. Food is usually
scooped up into a ball at
the edge of the fingers,
then eaten.
 Leave food on your
plate otherwise it will
keep getting filled up
again.

13. II. What to wear
 Men should wear conservative suits and shoes.
 If working in the countryside in a non-commercial
capacity then wearing the traditional Afghan dress
(long shirt and trousers) is best.
 Women must always dress modestly and
conservatively. The general rule is to show as little
flesh from the neck downwards.
 If working in business, women should wear knee-
length, loose fitting business skirts with loose fitting
professional trousers underneath. Wearing headscarf
is advisable.

14. III. Business Meetings
 Business is very personal in Afghanistan. If
you have not already invested some quality
time in getting to know your associates, then
you must use initial meetings to establish trust.
 Do not be surprised or offended if during
meetings people walk in and out of a room or
phone calls are taken.
 If the meeting involves a group of people it will
be led by the leader who will set the agenda,
the content, and the pace of the activities.

15.  Meetings are usually held to communicate
information and decisions that have
already been taken rather than a forum for
discussion and brain storming.
 Meeting schedules are not well structured.
Start times as well as the points of
discussion are all flexible.
 Honour and shame should always be
considered. Always express yourself in a
way that is not direct or pins blame on
someone. Never make accusations to
anyone.

16. IV. Negotiating
 Negotiating can be a tricky, frustrating but often an enjoyable
affair if approached correctly.
 Always make sure you negotiate with the most senior person
possible as they are the decision makers.
 There is always a stronger/weaker party. Always start wildly
high in negotiations and very slowly work your way down,
always explaining why you are dropping in price but at the
same time explaining the damage it is doing to you.
 Always appeal to their sense of fairness and justice and use
the fact that you are looking to build a strong relationship.
 If monetary matters do not work then try pushing the idea
that a deal with you will bring prestige, honour and respect.

17. .

18. 1. Afghanistan is an emerging market of
strategic importance close to some of the
largest and fastest-growing markets in the
world.
 Afghanistan is strategically located
between the energy-rich republics of
Central Asia and the major seaports in
South Asia providing a key transit route for
Central Asian oil and gas to markets in
South Asia as well as overseas.
 Also Afghanistan has natural access to
markets of China, India and Pakistan.

19. 2. Afghanistan offers a pro-business
minded environment with legislation
favorable to private investments.
The principles of a market economy are
incorporated in the Constitution of
Afghanistan. Considering the National
Development Strategy, the growth of the
private sector is a cornerstone of Afghan
politics.

20. 3. Afghanistan is rich in natural resources.
 In Afghanistan there are currently more
than 1.400 identified mineral deposits.
These include energy minerals such as oil,
gas and coal as well as iron and copper
deposits of world quality.
 Furthermore, the country has been blessed
with a great variety of precious and semi-
precious stones, including emerald, jade,
amethyst, ruby, quartz and sapphire.

22. 1. Agriculture
 Agriculture remains fundamental to the livelihood in
Afghanistan, generating one third of the country’s
GDP and supporting nearly 80 per cent of its people.
 One industry related to the agricultural sector is
packaging, which provides great opportunities for
investors.
 Processing is another great investment opportunity.
Due to the growing markets for fruits and vegetables,
the potential for processed agricultural products is
enormous, including snack foods, fruit concentrates
as well as fresh fruit jams.

23. 2. Construction materials
 Currently, this is one of the fastest growing
sectors in the country. That’s why, the
demand for construction materials is rising
rapidly in Afghanistan, making the market
more attractive for foreign investors.

24. 3. Telecommunication
 Core telecommunication service providers
supply the Afghan market already in a
sufficient manner with increased
competition and price pressures.
 While there are still opportunities for mobile
service providers, the other supply and
service areas of the telecommunication
sector represent a far more virgin market.

25. 4. Transport and Logistics
 The country’s large and growing market for
transportation and logistics services presents
a ground floor opportunity for new providers.
 Early investors report modest start-up costs
and low overheads, and even smaller
operators are moving large volumes of freight.
 Investments in the transportation and logistics
sector are vital to the overall economic
development

27.  Do greet everyone when entering a room.
Shake hands with the men, but not with a
woman unless she extends her hand first.
 Do eat with your right hand as much as
possible.
 Do dress modestly.
 Do read about the country's history, culture,
and people before you come, as this will be
treated as a sign of respect for
Afghanistan.

28.  Don't show impatience if your interlocutor
isn’t giving you direct answers.
 Afghans like to elaborate and want to be
clear in communicating.
 Don't panic. Afghanistan’s government can
be bureaucratic. It may take you several
days to get a simple authorization signed.
Keep in mind that Afghanistan’s
government is undergoing a reform
process.
 Don’t drink alcohol in front of an Afghan.