The OECD has closely co-operated with the government, the private sector and international partners to formulate policy recommendations to support private sector development in Afghanistan. This report summarises this work and analyses the important hurdles firms face, ranging from lack of access to finance and public services to the burden of tax compliance. It suggests three sets of actions: (1) measures to encourage firms to move to the formal sector through better institutions and incentives, (2) steps to improve access to finance to allow f irms to grow and (3) digital solutions to improve public service delivery to firms, with a strong emphasis on mobile-friendly platforms.