weighted score 2.1 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Afghanistan
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Afghanistan as a sourcing destination.
Labour cost competitiveness
9
Among the lowest wages globally. 65% acute poverty. But women banned from employment, halving workforce. Abundant unskilled labour with massive unemployment.
Supply base depth
1
No industrial manufacturing. Artisanal carpet weaving and dried fruit processing only. $2.5T mineral reserves entirely untapped. No supply chain infrastructure.
Logistics & infrastructure
1
Landlocked. No rail network. Roads degraded by decades of conflict. All trade transits Pakistan or Iran. Kabul airport limited cargo capacity. Among the worst logistics globally.
Workforce skills
2
Women banned from education and employment. Brain drain ongoing. No technical training infrastructure. 440+ clinics closed. Workforce is unskilled and depleted.
Scalability
3
Young population (~42M) provides theoretical labour pool but institutional collapse, women's exclusion, and infrastructure absence prevent any scaling. Mineral reserves undevelopable under current conditions.
Ease of doing business
1
No recognised government. No enforceable contracts. No functioning judiciary. No banking system. TI CPI 16/100. Property rights subject to Sharia interpretation. The worst business environment on this index.
Trade access & tariffs
1
EU EBA suspended. No preferential access. Comprehensive sanctions on Taliban entities. No recognised sovereign counterparty for trade agreements. Financial transactions face extreme barriers.
Sustainability baseline
1
No environmental framework. No ESG reporting. 22M need humanitarian assistance. Gender apartheid — women banned from education and employment. The most severe sustainability deficit globally.
Innovation & IP
1
No R&D capacity. No IP framework. Women banned from higher education. No technology sector. Lowest innovation capacity on this index.
Quality standards
1
No quality management infrastructure. No ISO-certified facilities. No product safety regulation. Traditional artisanal benchmarks only. No formal certification system.
Labour & Cost Competitiveness
Labour & Cost Competitiveness
- Wage levels
- Among the lowest globally. GDP per capita is declining. 65% of the population lives in acute poverty. Labour is abundant but unskilled. Women are banned from most employment, effectively halving the potential workforce.
- Total cost of ownership
- Despite extremely low nominal wages, total cost of ownership is prohibitive. Security costs, landlocked logistics (transit through Pakistan or Iran), sanctions compliance burden, and supply chain opacity make any sourcing relationship uneconomic.
- Labour market dynamics
- Population approximately 42 million with very young demographics. Massive unemployment and underemployment. Skilled workers have emigrated. 440+ health clinics closed, reflecting broader institutional collapse.
- Informal economy
- The vast majority of economic activity is informal. Opium economy historically exceeded formal GDP. Carpet weaving, dried fruit processing, and small-scale mining operate outside any formal labour framework.
Supply Base & Infrastructure
Supply Base & Infrastructure
- Manufacturing capacity
- Negligible. No industrial manufacturing exists at scale. Artisanal carpet weaving and food processing (dried fruits, nuts, saffron) are the only production activities with export potential.
- Mineral reserves
- Estimated $2.5 trillion in untapped mineral reserves — lithium, copper, rare earths, iron ore, chromite, gemstones. The Mes Aynak copper and Hajigak iron ore deposits are globally significant but undeveloped. No mining infrastructure exists at scale.
- Transport infrastructure
- Landlocked with no rail network. Road network severely degraded by decades of conflict. Kabul airport operational with limited cargo capacity. All trade transits through Pakistan (Karachi) or Iran (Bandar Abbas).
- Energy infrastructure
- Electricity coverage is among the lowest globally. Most power is imported from Central Asian neighbours. No domestic energy infrastructure supports industrial production.
Trade Access & Business Environment
Trade Access & Business Environment
- EU trade relationship
- EU EBA (Everything But Arms) access suspended following Taliban takeover. No preferential market access. Sanctions on Taliban entities create extreme compliance burden for any trade.
- Business environment
- No recognised government. No enforceable contracts. No functioning judiciary for commercial disputes. No banking system for international transfers. TI CPI 2025: 16/100. Property rights subject to Taliban interpretation of Sharia law.
- Financial system
- Banking system effectively collapsed. Da Afghanistan Bank operates under Taliban control but is excluded from international financial networks. Hawala (informal value transfer) is the primary mechanism for cross-border payments.
- Export channels
- Coffee and dried fruit exports continue through informal trading networks via Pakistan. Carpet exports reach European markets through intermediaries in Pakistan and UAE. Traceability to origin is impossible in most cases.
Innovation, IP & Quality
Innovation, IP & Quality
- R&D capacity
- Effectively zero. Universities are operational for male students only — women banned from higher education since 2022. Research output is negligible. No technology sector.
- IP framework
- No functioning IP protection system. Taliban governance does not recognise international IP frameworks. No enforcement mechanism.
- Quality standards
- No quality management infrastructure. Artisanal products (carpets, saffron) have traditional quality benchmarks but no formal certification system. No ISO-certified facilities.
- Innovation outlook
- Afghanistan has the lowest innovation capacity of any country on this index. The combination of Taliban governance, international isolation, women's education ban, and institutional collapse means no improvement pathway exists under current conditions.