Kabul, Afghanistan, April 27 2021 — The UN Development Programme (UNDP) and the Directorate of Investment Facilitation Unit (IFU) of the Administrative Office of the President of the Islamic Republic of Afghanistan signed a Memorandum of Understanding (MoU) in Kabul today, in which both parties reaffirm their joint commitment to work together to strengthen private sector investment in development projects as per the government’s development priorities.
Through this MoU both organizations will collaborate to advance SDG financing as a mechanism to enhance public-private partnerships and advocate for sustainable private investments in development programmes.
While UNDP will be assisting IFU with Technical Advice for projects under Public Private Partnerships (PPPs), IFU will include the Sustainable Development Goals (SDGs) into their policies, laws and regulations which guide the investments on development projects in Afghanistan.
UNDP will be cooperating with IFU on conducting assessments for the establishment of a risk guarantee mechanism for private investments and PPP projects and will be mapping out potential investment and business opportunities in Afghanistan geared toward building confidence and attracting SDG-related private finance to PPP projects in the country.
Similarly, UNDP will provide technical assistance to reform regulations to create a suitable financial ecosystem in Afghanistan for new innovative finances such as crowdfunding, Islamic Finance, blended finance and green Sukuk, and will assist IFU to ensure sustainability and long-term economic and social impact.
Based on the MoU, PPP Projects’ shareholders will receive advice from UNDP and IFU on how to develop a suitable finance structure to minimize the cost of finance and mitigate the risk of investment in the projects.
“UNDP partners with over 130 countries on over 700 projects on their unique journey to create effective and accountable institutions, because peaceful and inclusive societies cannot exist without them,” said UNDP Resident Representative, Abdallah Al Dardari at the signing ceremony. “This idea is at the heart of our work that Private Sector should get more engaged with Development.”
Signing the MoU on behalf of the Government of Afghanistan, IFU Director Mr. Attaullah Nasib said, "IFU is delighted to deepen its partnership with UNDP as a close and invaluable partner. We will join forces to accelerate joint activities and support for the achievement of the 2030 Agenda, with particular emphasis on SDG financing."
The signing of MoU between UNDP and IFU is the first step towards a long-term collaboration between the two entities in support of the private sector investment and SDG financing, and a step towards achieving SDGs in Afghanistan.