Azernews.Az

By Laman Sadigova

After many years of political closeness, Afghanistan is ready to open its borders to foreign investments. Azerbaijan is among the countries which are desirable investors for the Afghan economy, especially since its all economic infrastructure stands in ruin.

To be exact, Kabul needs contributions in its economical and energy spheres and Azerbaijan with its attractive investing capabilities can benefit the war-torn Asian country.

There is a convergence and cooperation strengthening in the relations between the two nations, which are both looking for prospects of economic interaction.

Despite being the region's most oil-rich country Afghanistan is unable to raise this sector of economy due to the lack of necessary funds.

Indeed, investors are still very wary of Afghanistan due to aggravated instability -- religious extremism, political instability and frequent cases of terror.

Obviously, Azerbaijan is interested in Afghanistan’s economy as it represents a wide space of cooperation. Afghanistan has been a close country for a long time and now it is opening its borders to Azerbaijani investors and money.

The two countries have maintained good relations for quite a long time. Also, Azerbaijan has Afghanistan’s support in the Nagorno-Karabakh conflict as it repeatedly defended the territorial integrity of Azerbaijan. Such tight bonds can be explained by the common religion which links the two brotherly countries. Geography has of course played an important role in bringing the two nations together.

Azerbaijan, with its great experience in the oil sector has attracted Afghanistan’s economy. Also, Afghanistan is interested in the electricity production via natural gas, the mining sector and petroleum. SOCAR can become a marvelous solution and initial guide for other oil companies.

SOCAR has already assisted in the launch of an oil refinery in Mazar-i-Sharif in 2013.

What are the perspectives of further Azerbaijani investments in Afghanistan?

It has to be mentioned that Afghanistan can reach a new level while becoming closer to Europe through Azerbaijan. In fact, Afghanistan is thinking to get this access through Turkmenistan, further through the Caspian Sea, Azerbaijan, Georgia and Turkey. Judging by the country’s economical condition, Afghanistan needs an impetus, a balance to push its economy on a new stage.

While Western and the U.S. influence are not taken kindly, Azerbaijan can become an active player in the country.

Nevertheless, the main concern related to Afghanistan is the security issue. It is mainly related to the uncertain situation in the country, armed clashes, extremism and illegal drug trafficking. The experience of recent decades shows that military support is not enough for the sustainable development of Afghanistan.

Perhaps, economical growth can help Afghanistan cope with its many problems.

According to the State Statistics Committee, the trade turnover between the two countries in January-February 2015 amounted to $15.7 million. The Afghan side is quite displeased with these numbers, wishing them to be higher.

Despite the attractiveness of projects and plans, Azerbaijan still worries about the safety of the invested money.

Will Afghanistan overcome such problems and become a reliable partner for Azerbaijan?

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Follow Laman Sadigova on Twitter: @s_laman93

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