Afghanistan–Japan Trade Reaches $97 Million Despite No Direct Investment

The Japanese ambassador to Afghanistan told that although Japan has not made investments in Afghanistan, trade exists between Kabul and Tokyo.

He added that a large portion of Japan’s trade with Afghanistan is indirect and conducted through third countries.

Kenichi Masamoto, Japan’s ambassador to Afghanistan, said: “At present, we do not see direct Japanese investment in Afghanistan, but we do have trade. We export machinery and machinery parts. Direct trade is limited; however, some Japanese vehicles and their spare parts enter Afghanistan through third countries. Therefore, trade exists, and there is also larger indirect trade taking place.”

Meanwhile, the Ministry of Industry and Commerce of the Islamic Emirate of Afghanistan reports that trade volume between Afghanistan and Japan reached $97 million last year, of which $2 million accounted for exports and $95 million for imports.

Akhundzada Abdul Salam Jawad, spokesperson for the Ministry of Industry and Commerce, said: “The main export items to Japan include medicinal plants, raisins, dried figs, pistachio kernels, fresh fruits, almond kernels, and dried apricots. The main imports from Japan include motorcycles, high-speed vehicles, tires and tubes, vehicle spare parts, and bicycles.”

Economic analysts believe that by utilizing emerging opportunities for investment in the country, the Islamic Emirate should seek to attract Japan toward investing in Afghanistan.

Ahmad Ferdous Behgozin, an economic analyst, said: “Japan can assist Afghanistan in technology transfer, improving production standards, and strengthening industrial capacity. On the other hand, trade relations with Japan send a message to the world that Afghanistan seeks constructive and balanced engagement.”

Another economic analyst, Shakir Yaqoubi, said: “Considering the future pathways for our country, establishing a structured and well-managed relationship with Japan could be highly important, particularly in infrastructure, energy sectors, education, and technology, where Japan can play a very effective role.”

This comes as, according to statistics provided by the Ministry of Industry and Commerce, Afghanistan currently conducts annual trade with more than 80 countries around the world.