Doing Business in Afghanistan

Rangina Hamidi's Kandahar Treasure helps Afghan women sell embroidered goods in a war-torn country where security is a constant concern

Kandahar Treasure's employs 450 people and sells in Afghanistan, Canada, and the U.S. Courtesy Rangina Hamidi

Rangina Hamidi Courtesy Rangina Hamidi

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The Entrepreneur: Rangina Hamidi, 32

Background: Hamidi was born in Kandahar, Afghanistan, three years before the Soviet invasion. Following the invasion, her family fled to Pakistan and lived there as refugees for seven years. During that time, Hamidi and her sister were forced to stop studying by the predecessors of the Taliban, who threatened to burn the girls' faces with acid if they continued going to school. In 1988, Hamidi's family moved once again, this time to Arlington, Va. There, Hamidi graduated from high school with top honors and went on to earn a double major in women's studies and religious studies from the University of Virginia. In 2003, she returned to Afghanistan to establish entrepreneurial ventures for women.

The Company: With a $55,000 seed grant provided by the U.S. Agency For International Development to the nonprofit organization Afghans for Civil Society, Hamidi launched Kandahar Treasure as a nonprofit, with the goal of helping women artisans sell their embroidered goods. The business now employs 450 people and sells in Afghanistan, Canada, and the U.S. Hamidi is in the process of transforming it into a for profit-venture. (Hamidi's story, along with those of several other Afghani entrepreneurs, is part of Laurie Chock's documentary Thread. An excerpt of the documentary is embedded at the top of the page.)

Revenues: n/a

Her Story:

When the world's attention turned towards Afghanistan in late 2001, I knew that I needed to return to help with the reconstruction of my motherland. I arrived in Afghanistan in 2003, a young, inexperienced idealist in the world of development with dreams of creating big changes. Very quickly, however, I learned that "fixing" Afghanistan was a bigger task than I had imagined and it was going to take many people, many years, and many resources to even begin the process of reconstruction.

I started Kandahar Treasure as a way to create an economic base for the province while supporting the advancement of women in the country. A goal of this venture is to make sure that women do not get left behind again. Women have sacrificed a lot for this nation and continue to do so even now as many of my country's corrupt leaders continue to fight for power.

We started by giving about 20 women artisans raw materials that they could spin into a very fine form of hand embroidery on pillows, tablecloths, and clothing. Our nonprofit funder Afghans for Civil Society would then seek markets for the goods, paying the women more than the local market value. Additional sales revenue was used to increase the number of participants.

Surrounded by Suicide Bombs

It is not a cliché to say that trying to do business in a war-torn country is challenging. The most obvious challenge is security. We are operating in the midst of suicide bombs, open fighting, and NATO-led International Security Assistance Force fighting with local insurgents. We must encourage ourselves to work as if things are normal around us. Because if we think about the realities, we might as well shut down our business and stay home.

Then there are the practical, day-to-day challenges of doing business in Afghanistan. I can't depend on a regular postal system, electricity, and mechanics who can fix things—things I used to take for granted in the U.S. For example, we had a small technical error in our office Internet dish. I estimated it needed only about 30 minutes to fix. However, because of the lack of skilled personnel here, the problem lasted more than a month! Similarly, the pace of work here is much slower than probably anywhere else in the world, making it hard to compete in the global markets.

Beyond those challenges, I've also learned there are many issues in the world of aid organizations and nonprofits.