Investigating the Role of Agribusiness in Financial Insecurity Reduction in Shakardara District of Kabul, Afghanistan

Abstract

Agriculture remains the primary source of livelihood for rural households in Afghanistan; however, persistent financial insecurity continues to affect farmers due to limited agribusiness opportunities, weak market linkages, inadequate access to inputs, and low participation in value chains. This study examines the role of agribusiness in reducing financial insecurity among rural households in the Shakardara District of Kabul, Afghanistan. The research specifically investigates how participation in the agribusiness value chain, market access, and access to agricultural inputs, agricultural extension and training, access to market information and prices, and off-farm agribusiness employment contribute to financial insecurity reduction. A case study research design with a deductive approach was employed. Primary data were collected through a structured questionnaire administered to 384 randomly selected farmers and agribusiness traders in the study area. The reliability of the instrument was confirmed using Cronbach’s alpha, with all variables exceeding acceptable thresholds. Data were analyzed using descriptive statistics and inferential techniques with the help of SPSS software. The findings indicate that agribusiness plays a significant role in reducing financial insecurity by enhancing income stability, improving market participation, and diversifying livelihood opportunities. Engagement in livestock farming, value addition activities, and off-farm agribusiness employment emerged as key contributors to financial resilience. However, the results also reveal challenges such as limited access to local markets, transportation constraints, and barriers to participation across multiple stages of the value chain. Demographic factors such as education level, income, and farming experience were found to influence the extent to which agribusiness contributes to financial security. The study concludes that strengthening agribusiness systems through improved market access, extension services, input availability, and coordinated stakeholder support can significantly enhance financial security among rural households. The findings provide valuable insights for policymakers, development agencies, and practitioners aiming to promote sustainable agribusiness development and rural financial resilience in Afghanistan.