Clustered Micro, Small and Medium Enterprises and Afghanistan’s Economic Recovery

Clustered Micro, Small and Medium Enterprises and Afghanistan’s Economic Recovery

In 2025, UNDP and UNCTAD conducted a nationwide survey on clustered MSMEs in Afghanistan, highlighting how these businesses operate, the challenges they face, and their growth potential. MSMEs have long worked in clusters, deeply rooted in communities, relying on family labour and apprenticeship systems to pass on skills. Built on trust and mutual support, these clusters balance cooperation and competition, strengthening resilience and efficiency. More than businesses, they support families and drive local economies. The study covered 1,441 clustered MSMEs in five major provinces: Kabul (300), Herat (243), Kandahar (249), Nangarhar (398), and Balkh (251).