An Evaluation of Business Opportunities within Afghanistan's Carpet Sector
Prepared by: Draw T. McCord, IOM, CCE CEO The McCord Group May, 2007
Research of Business Opportunities Within Afghanistan's Carpet Sector May, 3 years ago
Overview of the Afghan Carpet Sector
Afghanistan's thriving floor coverings and materials trade can be described as legacy from the country's wealthy commercial history and diverse lifestyle. World-renowned because of their intricate models, Afghan floor coverings reflect the heritage of cottage-based craftsmanship passed through ages of family members. Afghanistan makes several types of hand made carpets, which include felted constructed from wool carpets (namads), flat non-pile fabric woven carpets (kilims), and heap and knotted carpets made out of wool, man made fiber, and natural cotton. Although carpet weaving definitely dominates this kind of sector, additional textile components of cotton, wool, silk and cashmere are also made in Afghanistan. The manufacture of floor coverings is largely achieved by a huge network of weavers working on individual carpets during Afghanistan's countryside. As testament to the meticulous nature from the art, a single large carpet typically takes 6 to 9 months to weave. Several dealers or traders agreement upfront while using weavers, or purchase the rugs prior to last finishing intended for eventual sales to price tag and from suppliers customers on the global basis. In their part, the dealers perform a various functions associated with production and sale. In line with the Afghanistan Carpet Exporters Guild (ACEG), over one million Afghans work in the production of floor coverings, with millions more doing work in compatible industries such as made of wool production, cutting/washing and style. Because of this, the carpet sector has become a key focus to get Afghanistan's govt and private sector support companies. For example , Afghanistan's Ministry of Commerce created a floor covering consortium in 2005 to be able to utilize the put together strength of carpet manufacturers to create presence in the marketplace. The Afghanistan Expense Support Agency (AISA) and the Afghanistan Export Promotion Organization (AEPA) job to promote external and internal investment in to the sector. For the private sector side, businesses such as the Bedcover Women's Organization Federation (AWBF) and the Centre for Intercontinental Private Business (CIPE) facilitated the start of a socially conscious company called AfghanMark as part of an evergrowing carpet range of thirteen companies plus more than twenty-three, 000 weavers. While 1 cannot argue that both the federal government and private sector are focused on the carpet sector as a potential growth market in Afghanistan, one should also understand that zero consistent technique exists to coordinate investment within the sector or to constantly market Bedcover carpets all over the world. Many activities are regular, but most are done with very little coordination or synergy, which in turn creates activity but very little long term progress. Even so, there are plenty of opportunities intended for successful purchase in Afghanistan's carpet sector for those firms and/or individuals with the resources, technical expertise, and long-term commitment to remain on the market.
This document is an examination that can be used by potential investors within Afghanistan's carpet sector as a guide to achieving the most effective return on investment. It must be said that this is a preliminary guideline. Each investor will need significant assistance on the floor in Afghanistan to identify facilities, build support with the private sector and government, examine the project's cost compared to benefit, and to coordinate the logistics necessary to mitigate risk. Section One particular: Organizational Prepare Description of Venture A. Profile of Opportunities in the Carpet Sector: 1 . Development: As stated previously mentioned, the Cover Carpet Exporters Guild information that there are over one million Afghans currently active in the production of carpets. Up to 95% of this production is carried out within the house on free-standing looms offered by carpet export...