DUSHANBE, April 23, 2011, Asia-Plus — IFC, a member of the World Bank Group, is helping LLC IMON International, Tajikistan’s largest microfinance organization, provide comprehensive financing and leasing of agricultural equipment in northern Tajikistan, improving farmers’ access to finance and enabling them to make their operations more profitable, the IFC Dushanbe Office reported on April 22.
In March, IFC Tajikistan Agribusiness Finance and Business Environment Project signed an advisory agreement with IMON International to support the expansion of its agricultural equipment finance portfolio in Ghonchi, Isfara, Istaravshan, Konibodom and Shahriston districts of Sughd province in northern Tajikistan. In addition to providing training sessions, IFC is surveying farmers in the region in order to help IMON International identify and create a database of potential clients for financing and leasing of agricultural equipment.
“The signing and realization of this agreement between IFC and IMON International will have a positive influence on our country’s agricultural development,” said Sanavbar Sharipova, IMON International CEO. “Agriculture is a vital contributor to employment and development in northern Tajikistan, and this initiative will enable IMON to grow its portfolio in the agriculture sector.”
IFC Tajikistan Agribusiness Finance and Business Environment Project is funded by the European Union, and its goal is to improve the regulatory and policy environment for agriculture as well as promote access to finance through a focus on agri-leasing and equipment finance. IFC provides advisory services to financial institutions in order to build capacity for agri-leasing and equipment finance, and assists government agencies to implement reforms that benefit the agriculture sector.
“IFC surveys have indicated that farmers and processors lack access to finance for new agricultural equipment,” said Raiomand Billimoria, IFC Tajikistan Agribusiness Finance and Business Environment Project Manager. “We will help identify potential clients and thus help IMON International develop a pipeline of clients to grow its equipment finance portfolio. The resultant financing will enable farmers in the rural areas of Sughd province to acquire modern and efficient agricultural equipment.”
IFC has expanded its investment program in Tajikistan significantly in the last three years with commitments of $23 million in 11 projects in the financial markets, manufacturing, and infrastructure sectors. IFC’s advisory program in Tajikistan is its largest among Central Asian countries. Various programs focus on developing financial markets through credit information systems, microfinance, agricultural finance, and leasing. IFC’s corporate governance program promotes transparency and good governance in larger corporations. IFC also is advising the government of Tajikistan on attracting private sector investment to develop its Konimansuri Kalon silver deposits.
IMON International is the largest microfinance organization in Tajikistan, with seven branches and 33 field offices covering 28 regions of the country. IMON grew out of the Micro Loans in Tajikistan program started in 1999 by the National Association of Businesswomen of Tajikistan in partnership with Mercy Corps. In 2007, the founders decided to transform IMON from a nonprofit microfinance lending foundation into a commercial organization. In 2008, IFC provided a $2.5 million loan to support IMON’s lending operations and increase its outreach.
