World Bank Approves $84 Million Aid Package for Afghanistan, Benefiting Over 5.4 Million People

The World Bank approves $84 million in grants to support livelihoods, community resilience, and services for Afghans amid the country's severe economic crisis.

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Muhammad Jawad
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World Bank Approves $84 Million Aid Package for Afghanistan, Benefiting Over 5.4 Million People

World Bank Approves $84 Million Aid Package for Afghanistan, Benefiting Over 5.4 Million People

The World Bank has approved an $84 million grant from the International Development Association (IDA) for the Afghanistan Community Resilience and Livelihoods Project, complementing $70 million in additional financing from the Afghanistan Resilience Trust Fund (ARTF). The project, which began in 2022 with a $265 million ARTF grant, aims to provide livelihood support and services in rural and urban areas, support social grants for women and the vulnerable, and strengthen community institutions for inclusive service delivery.

The additional funding will allow the project to scale up operations, provide more livelihood opportunities for women, expand climate resilience activities, and provide employment and services to returning Afghan migrants. To date, the project has provided short-term employment to over 776,000 households, benefiting approximately 5.4 million Afghans, and provided cash or in-kind social benefits to around 92,200 vulnerable households. The project has also helped create a market for local civil works and maintain the capabilities of local contractors, leading to an estimated 2,200 highly skilled, market-driven jobs.

Why this matters: Afghanistan faces a severe economic crisis, with around 23 million Afghans needing humanitarian aid this year. Experts say that economic sanctions and the freezing of assets have caused an increase in poverty and unemployment, and that humanitarian aid alone cannot solve the current problems. The World Bank's aid package aims to address these issues by providing livelihood support and services to millions of Afghans.

The head of the Afghanistan branch of the World Bank acknowledged that the new credits will increase activities in urban and rural areas, provide more livelihood opportunities for women, and provide employment conditions and some other services for Afghan returnees. The project is implemented by UNOPS, which works with international and local NGO partners and local private sector contractors to implement activities in rural and urban areas.

"The new credits will increase activities in urban and rural areas, provide more livelihood opportunities for women, and provide employment conditions and some other services for Afghan returnees," said the head of the Afghanistan branch of the World Bank. The World Bank's aid package comes at a critical time for Afghanistan, as the country faces a severe economic crisis and millions of Afghans are in need of humanitarian assistance.

Key Takeaways

  • World Bank approves $84M grant for Afghanistan Community Resilience project
  • Project aims to provide livelihood support, social grants, and strengthen institutions
  • Additional funding will scale up operations, expand climate resilience, and support returnees
  • Project has provided short-term employment to over 776,000 households, benefiting 5.4M Afghans
  • Aid comes amid Afghanistan's severe economic crisis and humanitarian needs