Tile Producer Paves a Profitable Path in Afghanistan

A worker at Kabul Mosaic pours concrete into new paving tile molds
A worker at Kabul Mosaic pours concrete into new paving tile molds.
USAID
Sales triple, jobs multiply with new equipment
“Before, we were producing just one item. Now we are producing 17 different types of mosaic based on market demands.”

August 2016—People walk all over Mohammad Reza’s business, and he couldn’t be happier about it. His company, based in Kabul, was recently awarded a large contract to produce more than 300,000 square feet of mosaic tile to pave nearly 4.5 miles of sidewalk in the city.

In 2012, Reza founded the Kabul Automatic Mosaic Production Co. to produce tiles for use in all types of construction projects. Although business was steady, the company saw an opportunity to expand its product line. Demand was high for a specialized type of tile, called interlocking paving tile, which is used for sidewalks, water canals and garden paths.

Once he knew what the market wanted, Reza just needed the equipment to produce it. He partnered with USAID’s Assistance in Building Afghanistan by Developing Enterprises (ABADE) program to invest in the needed material. Through a competitive application process, ABADE provides capital to existing small and medium enterprises in targeted manufacturing sectors. The program’s Afghan business partners must invest at least twice what the program contributes.

With new equipment on hand, not only was Reza able to win the sidewalk contract, Kabul Mosaic’s sales have tripled, and Reza’s own income has increased by about 40 percent.

“The support provided by USAID’s ABADE program completely changed our business. Before, we were producing just one item. Now we are producing 17 different types of mosaic based on market demands,” said Reza.

Sales are not the only measurement of success. Originally, Reza had anticipated creating around 30 new jobs with increased sales. However, to keep up with rising demand, Reza has created 50 new permanent jobs and an additional 50 temporary positions.

Kabul Mosaics is only one of nearly 300 investment partnerships created through USAID’s ABADE program to promote the growth of small and medium enterprises in Afghanistan, 32 percent of which address the needs of women and youth. The four-year project started in October 2012.

LINKS

USAID’s mission in Afghanistan
Powering a New Silk Road: Helping Connect Supply with Demand in South and Central Asia
True Detectives: Monitoring Projects in Afghanistan

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