Seminar Business cooperation with the Islamic Republic of Afghanistan

Speech staatssecretaris Heemskerk t.b.v. seminar 'Business cooperation with the Islamic Republic of Afghanistan'.

Dear President Karzai,

Your Excellencies, Ladies en Gentlemen,

It is with feelings of utmost pride that I welcome you to the city of The Hague. On behalf of the people of the Netherlands, I extend our hospitality and friendship to you. I hope your stay here will be memorable and pleasant.

Today, as always, we meet in the spirit of mutual respect. The Netherlands warmly supports Afghanistan. Last year, my government decided to extend the Dutch contribution to ISAF in Uruzgan till August 2010. Yet military force alone does not lead to a sustainable solution. That is why the Dutch government is committed to contributing to the economic recovery of Afghanistan.

Afghanistan has made impressive progress. The economy shows a double-digit growth each year, except for the 2006-2007 period of extreme drought. The business infrastructure has matured, with a simpler and more transparent tax system in place. And as a result of legal changes, foreign companies can now fully own local businesses. The Afghan government's commitment to economic growth is clearly paying off.

The Afghan trade mission is an important next step in the further development of the Afghan economy. I have to say I am thoroughly impressed with the size of the delegation and its presentation. We host many delegations, but few are as organised, focused and prepared as yours. Your entrepreneurial zest serves as an example to all of us here.

When I was in Dubai earlier this year, I spoke to some of the Afghan companies. It is a pleasure to see you again. This time, our focus lies on three areas of mutual interest: construction, services and agriculture. The Netherlands has world-leading expertise in these industries, and we will do our utmost to help our Afghan counterparts as much as we can.

I am happy to say that Dutch and Afghan businesses have been partnering up in these three areas.

Bokkers Trading, for example, is contributing its extensive knowledge of the chicken supply chain to the development of Afghanistan's very own poultry farming industry. At this moment Afghans are being educated and trained in this field at the company's training centre in Barneveld, the Netherlands' poultry capital.

Another example: the Dutch government is supporting a consortium led by Trade Point for the construction of a distribution centre and warehouse in Kabul. It's ideally suited for the distribution of industrial and consumer goods. Trade Point also sees it as their mission to develop standards for locally produced goods and making them suitable for export to Europe.

Other examples come to mind. Naco, a leading international airport consultancy and engineering firm, has conducted the needs assessment for the reconstruction of Kandahar, Kabul and Mazar-y-Sherif airports on behalf of the World Bank.

And ING Group, one of the world's leading financial institutions, has lent its management expertise to the establishment of the Afghanistan International Bank. Price Waterhouse Coopers Netherlands, meanwhile, is overseeing financial transactions for several Afghan government agencies for the Afghanistan Reconstruction Trustfund.

This is, I believe, only the beginning. There is potential for deeper co-operation between our two countries. I am confident that Dutch businesses can find novel ways to contribute to Afghanistan's development. And vice-versa! I know that Afghan companies have much to offer: local knowledge, production capacity and partnerships that allow for business to expand to the Afghan, regional and international market.

Ultimately, each business will need to determine what is in its own best interest. The Dutch government, for its part, will focus on its role as catalyst. This means ensuring the best possible conditions for meeting partners and capitalising on opportunities. Right now, we are trying to match companies from the Afghan delegation to Dutch counterparts. Our hope is that this will result in mutually beneficial partnerships.

Today, we are taking others steps. Ab van Ravensteijn, Managing Director of the Agency for International Business and Cooperation, will speak in more detail about policy instruments that can help Dutch companies to do business in Afghanistan. In addition, we have organised three parallel workshops on agribusiness, services and construction.

Ladies and gentlemen, Afghan friends,

You have the support and good will of the Dutch government and people. It's an honour and pleasure to be of support as you rebuild your country. Judging by the companies that have joined the trade mission, I am confident that the right people are working on this with the right mentality. I wish both Dutch and Afghan businesses good luck in their endeavours.

I would like to end by expressing my gratitude to the Afghanistan Chamber of Commerce and Industry and Afghanistan Investment Support Agency. Your work and support has enabled us to organise this event today. On behalf of everyone here, I thank you for that.