DUSHANBE, November 26, Asia-Plus — The International Finance Corporation (IFC) is providing a loan of US$ 1.5 million to one of Tajikistan’s leading micro-deposit organizations, FINCA Tajikistan, to expand access to financing for smaller businesses
Mr. Aftab Ahmed, IFC Director for Financial Markets and Private Equity Funds, for Europe, Central Asia, the Middle East, and North Africa and Mr. Jerrold Smelcer, CEO of FINCA Tajikistan signed an appropriate document here proper on November 25.
IFC’s investment is expected to help FINCA increase access to funding for microenterprises and small businesses in remote areas of Tajikistan, thus spurring growth, creating jobs, and reducing poverty.
Access to finance in Tajikistan remains one of the lowest in the world. Only 13% of the economically active population has borrowings from financial institutions. Limited availability of funding in turn constrains business opportunities of micro and small entrepreneurs and reduces the private sector-led growth in the country.
“FINCA aims to bring more opportunities to disenfranchised communities throughout Tajikistan by offering them a range of high quality financial services. The cooperation with IFC will further enable FINCA in its effort to empower our customers and allow them to take charge of their lives,” said Mr. Jerrold Smelcer.
For his part, Mr. Aftab Ahmed noted that increasing access to finance for microenterprises and promoting sustainable lending by microfinance was one of IFC’s priorities in Tajikistan. “Through investment and advisory, IFC has been supporting microfinance to stimulate entrepreneurship and help low-income and poor households across Tajikistan increase their living standards”, he said.
With microfinance loans accounting for 3.6% of the country’s GDP, the sector has a large room to grow and contribute to the country’s economic growth, job creation and poverty reduction.
Tajikistan became a member of IFC in 1994. IFC began operating in the country by pioneering advisory projects in 2004. Since 1997, IFC has invested $81 million to support 33 private sector projects in the financial sector, hydro power, retail, tourism and manufacturing sectors.
