While Afghanistan has the relevant policies and measures in place, there is potential for improvement. Attention should be given to strengthening the country’s regulatory effectiveness.
Among the three risks assessed in EIRA, breach of State obligations, unpredictable policy and regulatory change, and discrimination between foreign and domestic investors are on the same level as last year.
On a more detailed level, Afghanistan’s overall sub-indicator performance is moderate. Management and settlement of investor-State disputes continues to be the highest-scoring sub-indicator at 80. Its score on communication of vision and policies has improved by a point and stands at 74. On restrictions on FDI (60), institutional governance (56), transparency (56), and respect for property rights (50) there are no changes to the scores compared to 2019. Its performance on robustness of policy goals and commitments (38) is also the same as last year. Regulatory effectiveness continues to be the lowest-scoring sub-indicator at 33.