Helmand: High Value Commercial Opportunities for Foreign Investment

Helmand: High Value Commercial Opportunities for Foreign Investment Brief for HRH Duke of York: 19 December 2010 Market Facts • Helmand's main airport, BOST, 90 minutes flying-time from Dubai • 20% of the world population within 3 hours flying time • The main towns, Lashkar Gah and Gereshk, have secure industry sites in design and under development by DFID • BOST Industrial Park (in Lashkar Gah — currently under construction by DFID) is a secure location sited alongside the runway at BOST airport; supported by the Afghan Investment Services Agency • Gereshk IP is alongside the main Afghan arterial highway and 90 minutes drive time from Pakistan • State Owned Enterprise in both main towns provide existing industrial sites for exploitation • Raw product exports already to rest of Afghanistan and Pakistan via Kandahar • Some initial export testing underway to Dubai; and on pomegranate to Europe, Commodity Investment Opportunities Agriculture: • Helmand is a food surplus province with a significant year round production cycle based on a US/UK funded irrigation system and both industrial and potentially high value crops suitable for processing investment and commoditisation; including o Pomegranate and other fruits (grape, almond, apricot, melon) o Wheat and other cereals o Mung beans, legume (cucumber, tomato, leafy greens, onion, ) o Cotton o Nuts o Commercial farming partnerships • There has been no investment in processing or marketing for 30 years: significant opportunities exist to undertake: o Wheat milling and other cereal processing o Fruit drying, juicing plant o Vegetable drying/chilling, processing, packaging o Cotton processing and textile production o Oil extraction/biofuels o Dried nut grading, cleaning and packing • Opportunities available for immediate investment with processing plant in Cotton, with farm cooperatives, major landowners, Provincial Government, and state farms as willing partners; land and other resources available to support investment propositions • Greenfield investment available at the industrial park at BOST and at Geresk Minerals • Significant high value mineral deposits; potential for low cost extraction - most land state owned with no pre-existing development; potential for industrial production and high value niche product processing. Few extractive activities. Deposits include: o Marble (yellow, brown and green onyx) o Gold, iridium, lithium, aragonite, lead and zinc o Salt o Uranium and Thorium o Possible Oil and gas (none yet proven) EFTA01071356 • There has been no investment in mining or extractive technologies and skills for 30 years: marble extraction for example is by simple explosive. • Opportunity for Mining and joint venture partnerships with a range of agents. • Ministry of Mines and Minerals already proactive: undertook a promotional event in London this year • Oil and gas deposits recently proven in North, opportunity for survey work in the South • Helmand set alongside oil and gas production in Pakistan, Baluchistan and Iran. Cross Cutting • Helmand has an opportunity for transport, logistics, warehousing, airport and other supply chain investments • Airport underdeveloped and in need of freight industry development Support System: Foreign Investment and Marketing Helmand • Expert international export marketing, agri-business, agriculture and industrial development resources available locally to facilitate enquiries and visits • Provincial Government has positive attitude to investment. Kabul • The Afghan Investment Services Agency is available to support investment • Export Promotion Agency of Afghanistan available to support export projects • Key Line Ministries committed to use resources to lever support • Access to US Embassy/UK Embassy, DFID, USAID, USDA, Danish and other international resources in Kabul to facilitate on investment and export development Contact for further information Jonny Hall Senior DFID Representative & Socio-Economic Development Team Leader Helmand Provincial Reconstruction Team Mobile: Email: Adrian Green DFID Private Sector Development Advisor Helmand Provincial Reconstruction Team Mobile: Email: EFTA01071357