Following the political changes in Afghanistan, small businesses have emerged as a key source of hope for women seeking financial independence. Interviews with 23 women reveal that while many rely on small loans to sustain themselves, for some, these loans also bring economic and emotional stress.
To expand their businesses, the women took loans ranging from 30,000 to 1,000,000 Afghanis. According to findings five women borrowed from Access Bank, four women from Microfinance Banks, five women from the Aga Khan Foundation, and the remaining nine women from various other institutions. Among them, 17 women reported that the loans helped maintain or grow their businesses, while six struggled with monthly repayments due to low sales and unstable market conditions.
The loans supported a variety of enterprises: ten women borrowed for tailoring, seven for cooking and pastry businesses, six for dairy trading, and one to open a clinic.
Ruya Mohammadi, 34 years old from Kabul, who heads a manufacturing factory, said she took a 500,000 Afghanis loan from Ghazanfar Bank two years ago to buy machinery and raw materials. “The loan helped me overcome budget constraints, run my business successfully, and repay it on time,” she said.
Similarly, Shazia, 33 years old from Kunar, took a 50,000 Afghanis loan from an NGO to start a home-based tailoring workshop ten months ago. She explained that their financial situation was difficult, her husband was unemployed, and household expenses were high, which led her to take a loan to support her family. She added, ‘The business has grown steadily, allowing me to repay the loan and support my family’s expenses.’
Raihana Amiri another woman from Jowzjan took a 275,000 Afghanis loan two years ago to expand her tailoring workshop. Thanks to the Islamic Emirate’s ban on interest, she noted that repayment has become easier, with only two months remaining.
Six of the women reported that their primary concern was the stress of meeting monthly loan repayments.
Farzana Kohestani, who runs a cake and pastry company in Kabul, borrowed 350,000 Afghanis from Agha Khan Bank. She explained, “The main challenges I face are the lack of grants and the pressure of monthly installments.”
Beheshta, 28 years old from Faryab, shared a mixed experience: “The loan helped me continue my work, but monthly repayments, repeated bank calls, and some staff’s inappropriate behavior have caused significant stress.”
Economic experts say that small loans can boost household incomes, but they emphasize that longer repayment periods and reduced financial pressure are necessary for sustainable growth.
Iraj Faqiri an economic issues expert stated that “small loans with longer repayment periods can help low-income women and new entrepreneurs strengthen their household economies, providing a valuable opportunity in Afghanistan today.”
However, Qutbuddin Yaqubi, another economic issues expert, warned, “Providing women with small and medium loans without a proper understanding of economic cycles and opportunities will not solve their financial problems.”
Women’s rights activist Humaira Farhangyar highlighted the importance of pairing loans with training and support. She said, “Small loans, coupled with the right guidance, can economically empower women, helping unemployed female entrepreneurs gain skills and enter the workforce.”
Officials at the Central Bank of Afghanistan emphasized their role in overseeing bank lending, ensuring all loans are Sharia-compliant and aligned with borrowers’ repayment capacity. Spokesperson Hasibullah Noori added that expanding Islamic banking, digital services, and financial inclusion aims to provide safe and fair access to financial facilities for all citizens, supporting overall economic growth.
Najibullah Amiri, head of the Afghanistan Banks Association, noted that banks are willing to cooperate with borrowers if financial documents and guarantees are in order. “Installments can be extended or adjusted to help women clients, ensuring businesses survive and borrowers can stand on their own feet,” he explained.
Ghazanfar Bank officials reported that over the past year, more than 30 women-owned businesses have benefited from the bank’s financing, mostly in manufacturing, trade, agriculture, saffron processing, restaurants, and food industries. Internal assessments indicate notable business growth, with no failures reported.
Attempts to get comments from Microfinance Banks and the Aga Khan Foundation were unsuccessful. With women’s employment in Afghanistan dropping sharply since August 2021, small and home-based businesses remain one of the few viable ways for women to earn an income, often relying on small and medium loans to get started.
Reporter: Zarafshan Sharifi
