CEI addresses Afghanistan’s deepening economic fragility by restoring livelihoods through cash-for-work, climate-smart agriculture, youth and women’s economic empowerment, and market-driven entrepreneurship in the face of systemic poverty, displacement, and climate shocks.
Afghanistan remains one of the most economically fragile countries in the world. While the economy showed a modest 2.5% GDP growth in 2024, this limited progress conceals deep structural challenges. Nearly half of the Afghan population continues to live in poverty, with millions more unemployed or underemployed. Limited access to formal banking systems, credit facilities, and stable markets forces households to rely on informal labor or adopt negative coping mechanisms. The economic downturn has been compounded by shrinking international aid, volatile currency values, and a fragile financial system, leaving families increasingly unable to secure stable livelihoods. The collapse of traditional income-generating sectors, such as the rural opium economy—which lost over $1 billion annually due to the 2022 cultivation ban—has further deepened rural poverty. Restrictions on women’s participation in the workforce have reduced household income and resilience, with female labor force participation now under 5% and approximately 80% of Afghan women living in poverty. Youth face a similarly bleak outlook, with minimal access to vocational training and few pathways to employment. These widespread economic hardships are further intensified by recurrent climate-related disasters. Over 25 of Afghanistan’s 34 provinces have been affected by severe droughts, while floods and landslides continue to damage crops, kill livestock, and destroy essential infrastructure, including irrigation systems and marketplaces. Although some international organizations are unlocking climate adaptation funding, implementation remains slow due to security risks and administrative delays.
In this critical context, CEI delivers targeted, community-driven interventions to restore livelihoods and promote long-term economic recovery:
- Cash-for-Work Programs: CEI creates short-term income opportunities through labor-based infrastructure projects, such as rehabilitating irrigation canals, constructing protective embankments, and clearing rural access roads. These initiatives meet immediate income needs while restoring vital local infrastructure.
- Agricultural Recovery Support: CEI supports smallholder farmers through the distribution of drought-resistant seeds, essential tools, and training in climate-smart practices, enabling rural communities to resume and improve agricultural production.
- Women’s and Youth Economic Empowerment: CEI provides vocational training in market-relevant trades (e.g., tailoring, food processing, repair services), alongside business development support, micro-grants, and mentoring. These efforts specifically target women-headed households and unemployed youth, helping them launch or expand microenterprises.
- Entrepreneurship and Market Linkages: Through financial literacy sessions, business planning support, and access to local supply chains, CEI helps aspiring entrepreneurs establish sustainable income-generating activities.
- Climate-Resilient Livelihoods: CEI integrates adaptation strategies—such as water harvesting, income diversification, and ecosystem restoration—into livelihoods programming, reducing vulnerability to climate shocks and strengthening long-term resilience.
CEI targets to reach high-risk and underserved groups including returnees, persons with disabilities, and rural women ensuring that the most vulnerable households are not left behind. By addressing both immediate needs and systemic challenges, CEI’s livelihoods and resilience programming enables Afghan communities to rebuild, adapt, and thrive despite ongoing economic and environmental pressures.
