This study, which is conducted, with the technical and financial support of H – AICFO, focuses on the impact of COVID-19 on businesses, the current business climate, and the expectations of the business climate in Afghanistan for the next six months. In order to analyze the ongoing situation of the private sector and determining the impacts of COVID-19 on the business, the current situation is compared to the same period of last year, we conducted in-depth study of the impact of the COVID-19 on five sectors (Trade, services, agriculture, construction and Manufacturing) on Small-Medium and Large Enterprises in five zones (Kabul, Herat, Balkh, Nangarhar, and Kandahar). We analyze the extent of the impact of COVID-19 on private sector activities and their future expectations based on five indices (decrease in employment due to COVID-19, the expectation of an increased employment post-COVID-19, decrease in orders and sales due to COVID-19, the current business climate, and factors that affect private sector activities post COVID-19).

Since the prime objective of the ACCI and H – AICFO is to support the private sector to create a safe environment for attracting in-ward investment (domestic and foreign) into Afghanistan. The two organizations, therefore, studied the investment climate and the impact of COVID-19 on businesses and propose recommendations to the GIRoA and its international society in that regard.

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