The microfinance sector in Central Asia has been growing steadily for years, providing access to finance for millions of poor people and small businesses. But the sector has also shown signs of overheating.
In Dushanbe, Tajikistan's capital, Muhabbat Islomova runs a small firm producing decorative quarry tiles and pipes. In order to expand the business, she has in the past few years taken out several loans totaling $110,000 from IFC-client Access Bank
Boosted by a $1.3 million IFC loan, LLC Amiri began operations at its confectionary plant in Dushanbe, the Tajikistan capital, in 2011. Just three years later, Amiri leads the domestic market with a diverse product range of more than 40 chocolates.
IFC and the Consultative Group to Assist the Poor, CGAP, helped Tajikistan adopt an improved law on microfinance organizations, increasing access to finance for microentrepreneurs and the general population.
Tajikistan became a member of IFC in 1994. Since 1997, IFC has invested $133 million to support 40 private sector projects in the financial sector, hydro power, retail, tourism and manufacturing sectors.
IFC Strategy in Tajikistan
IFC, with its focus on private sector development, has an important role to play in supporting inclusive growth and job creation in Tajikistan. IFC works with private sector clients, government, and civil society to bring global expertise to Tajikistan through its advisory services and investment projects. IFC looks forward to continuing to support reforms to strengthen the investment climate and to increase its direct financing of Tajikistan’s private sector companies.
IFC advisory programs in Tajikistan focus on: i) improving financial markets infrastructure, specifically credit information sharing systems and risk management education; (ii) the institutional and capacity building of financial intermediaries; (iii) microfinance development; (iv) investment climate and tax administration; (v) improving corporate governance in local companies; (vi) increasing agri-financing, and (vii) infrastructure advisory.
As of June 30, 2014, IFC’s committed portfolio stood at $60 million, which includes investments in financial markets and agribusiness sector.
Details of projects currently in progress can be found in IFC Disclosure. For completed projects see press releases below or visit the IFC Press Room.