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.
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