Afghanistan, a country rich in energy resources and mineral wealth, continues to attract the interest of both regional and international investors. Its vast natural resources especially in solar, wind, and hydro energy present major economic opportunities for the region. Additionally, Afghanistan’s mining sector, which includes valuable reserves of copper, lithium, antimony, and gold, offers immense potential for economic growth. However, despite these assets, the country still faces serious challenges in meeting its energy needs and achieving economic self-sufficiency.

Currently, Afghanistan produces only 20 percent of its electricity domestically, while the remaining 80 percent is imported from neighboring countries such as Uzbekistan, Tajikistan, Turkmenistan, and Iran. While these imports help meet immediate needs, in the long term they hinder the development of domestic production and pose obstacles to economic independence.

Managing existing resources to develop solar, wind, and hydroelectric power can meet domestic demand and even create a surplus for export. National-level investment programs, particularly through the five-year development plan, could significantly aid the expansion of this sector. Furthermore, the energy sector requires transparent contracts, the introduction of modern technologies, and incentives for regional investors to flourish.

Afghanistan’s mining sector has caught the attention of international investors, particularly in gold, lithium, and antimony. The gold mine in Chah Ab district of Takhar province, currently under contract with a Chinese company, is considered a successful example of private and foreign investment. Approximately $350 million has been invested in this project, with extraction operations progressing rapidly.

Initiatives such as establishing international laboratories to support mining development like the recent interest shown by an Omani trade delegation could lead to positive outcomes in strengthening regional economic cooperation. Additionally, promoting domestic production for gold processing and setting up new factories would not only increase national revenues but also create job opportunities.

Private investment is essential to Afghanistan’s economic advancement. Although efforts to improve the investment environment supported by the World Bank were made up until 2020, recent political and economic changes have created new obstacles to private and foreign investment. Issues within the banking system and ongoing international sanctions have discouraged foreign companies from entering Afghanistan’s market. In such circumstances, strengthening the private sector and improving the domestic investment environment is critical.

Afghanistan must adopt policies that support investment in clean energy and mining. This includes establishing clear and simplified laws for solar, wind, and hydro energy projects; ensuring effective management of mining revenues and contract transparency; enhancing regional economic partnerships with countries like Kazakhstan and Oman; providing support and facilities to private investors and domestic producers; and developing a long-term economic self-sufficiency strategy focused on energy and mineral sectors.

Afghanistan is a country with immense economic potential in clean energy and mining. If appropriate investment policies are introduced and resources are managed effectively, the country can move closer to achieving economic self-sufficiency and regional cooperation. Developing energy and mining industries is not only crucial for meeting national needs but also serves as a key step toward connecting with international markets.