On behalf of the Government of Afghanistan, Afghan Minister of Finance Omar Zakhilwal hosted the launch of a new US $92M economic reform program in partnership with USAID in Khyber Hall of the Ministry of Finance on September 8, 2009.  The Economic Governance & Growth Initiative (EGGI) is a five-year economic governance program that will provide technical assistance to GIROA’s key institutions such the Ministry of Finance, Da Afghanistan Bank, the Ministry of Commerce and Industries, the Ministry of Communication and Information Technology, and the Parliament’s National Economic Committee to develop and implement economic policies, create jobs, and spur economic growth and governance. 

This is a follow-on program to the Afghanistan Economic Governance and Private Sector Strengthening (AEGPSS) Program, which started in 2005 and ends in September 2009. The program achieved remarkable benchmarks with Afghan counterparts, including helping to grow the telecom sector, strengthening banking supervision, and launching a new streamlined business registration process in Kabul and Jalalabad.  Building upon achievements of the previous program, EGGI will support key institutions of GIROA and their respective provincial branches to expand economic reform in the provinces, districts, and communities, including:

• Ministry of Finance to improve public finance management, especially increasing tax and non-tax revenues.
• Da Afghanistan Bank and its provincial branches to improve monetary policies throughout the country.
• Ministry of Commerce and Industry to strengthen the business enabling environment by development of new policies and commercial legislation. The project will support expansion of the Afghanistan Central Business Registry (ACBR) to scale up business registration and information down to Kandahar, Mazari Sharif, Hirat, and ultimately throughout the country.
• EGGI will also work with Regional Commands, Provincial Reconstruction Teams, and government counterparts such as the Ministry of Communication and Information Technology to provide better communication infrastructure and other business enabling services for the people of Afghanistan throughout the country.   

U.S. Deputy Secretary of State Jacob Lew and H.E. Minister of Finance Dr. Omar Zakhilwal led the press conference on this significance program.  As H.E. Minister Zakhilwal noted, “EGGI highlights the U.S. Government’s substantial commitment to development in Afghanistan, including in the critical area of economic development.  We express our gratitude to the U.S. Government and the American people for their strong partnership.”  USAID Acting Administrator Alonzo L. Fulgham and H.E. Minster Zakhilwal signed a Memorandum of Understanding to formalize the project.