Telephones, Islamic Books and Currency Exchange. Some Companies Make Money from Taliban Rule

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KABUL, Afghanistan (AP) — Yunis Safi, a businessman in Kabul, knows well the importance of showing off his phone when he wants to get something done.

“In Afghanistan, your phone is your personality,” he said, smiling, a jeweled ring on each hand. One wears an emerald, the other a thick Russian diamond. “If you go to a meeting with the government, the better your phone, the more they respect you.”

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Safi runs a phone shop in the posh Shar-e-Naw district. There is an armed security guard outside. The iPhone 15 Pro Max is gracing store shelves and is priced at $1,400. He has clients willing to part with that sum of money, which might come as a surprise to some given the country’s economic woes and the fact that more than half of the population relies on humanitarian aid to survive.

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Even before the Taliban came to power in 2021, Afghanistan’s finances were on shaky ground. The budget was heavily dependent on foreign aid and corruption was widespread. The takeover sent the Afghan economy into a tailspin, billions of dollars in international funds were frozen and tens of thousands of highly skilled Afghans fled the country, taking their money with them.

But even under difficult conditions, some companies are making money from Taliban rule.

Safi has tapped into a diverse customer base – those hungry for the latest iPhone release and those happy with basic handsets, which make up the majority of its sales and sell for between $20 and $200.

The Taliban frequently attacked telephone poles and threatened telecommunications companies, accusing them of working with the United States and other international forces to track insurgents’ movements via cell phone signals. Now they are investing in 4G mobile networks.

According to the Ministry of Communications, two million new SIM cards have been issued in the last two years and the number of subscribers is increasing. Ministry spokesman Enayatullah Alokozai said the government is investing $100 million in the telecommunications sector and has fully restored hundreds of towers.

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In a country of 41 million people, there are 22.7 million active SIM cards. Of these, 10 million are voice calls and the rest are mobile internet.

According to the Ministry of Commerce, phone imports have increased. In 2022, more than 1,584 tons of phones came to Afghanistan. Last year it was 1,895 tons.

Safi said he has many Taliban customers and it is the younger ones who prefer iPhones. “Of course they need smartphones. They use social media, they like to make videos. iPhone offers better security than Samsung. The camera resolution, processor and memory are all better. Afghans use their smartphones like everyone else.”

Safi owns the iPhone 15 Pro Max, wears an Apple Watch Ultra and owns three cars.

Immediately after the Taliban came to power, business was bad, but it is improving, Safi said. “The people who are buying the new iPhones are the ones whose relatives abroad are sending money to Afghanistan.”

Remittances are a lifeline, even if they are less than half what they were before the Taliban came to power and the collapse of the banking sector.

At Kabul’s noisy Shahzada market, hundreds of money changers hold stacks of the local currency, the Afghani, and loudly hawk their wares. They occupy every floor, every stairwell, every nook and cranny.

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Abdul Rahman Zirak, a senior official in the currency exchange market, estimates that $10 million changes hands every day. The diaspora mainly sends US dollars to families who exchange them for Afghanis.

Before the Taliban took control, there were more ways to send money to Afghanistan. But there are no longer any ties to SWIFT or international banking, and that is a key reason business is brisk in the market, he said.

“The work of money changers has increased and strengthened,” Zirak said. “Money transfers come from Canada, the USA, Europe, Australia, Arab countries and other neighboring countries.”

Retail is hectic during the holidays. During the holy month of Ramadan, 20,000 people visited the market daily and entry took more than 90 minutes, he said.

“If the sanctions are lifted and the assets are released, our business may decline. But I don’t think that will happen. Many don’t have bank accounts. Unemployment is high, so people send money to Afghanistan. Our business will be needed for many years to come.”

Irfanullah Arif, who runs the specialist retailer of Islamic texts, Haqqani Books, is also optimistic about his future. Most of his customers are teachers and students at religious schools, so-called madrassas.

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There are at least 20,000 madrassas in Afghanistan. The Taliban want to build more. The Supreme Leader reportedly ordered the recruitment of 100,000 madrassa teachers last year.

While Arif’s business, like everyone else’s, suffered from the chaotic aftermath of the takeover, there was another reason. “All the students left the madrassas and went to work for the (Taliban) government,” Arif said.

The Taliban’s push for religious education has given him relief. Last year he sold 25,000 textbooks.

But success has its price. Arif imports everything and the Taliban focuses on revenue collection, even Islamic literature.

Arif pays a tax of 170 Afghanis (US$2.36) on a box of 100 books, with shipping costs of 500 Afghanis (US$6.95). Under Taliban rule, taxes on his bookstore tripled.

“That’s why books are expensive in Afghanistan,” he sighed. “With the increase in madrassas, our trade has increased, but so have taxes.”

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