DUSHANBE, May 25, Asia-Plus – An official presentation of the report by International Finance Corporation (IFC) on business environment in Tajikistan — Business Environment in Tajikistan as Seen by Small and Medium Enterprises — was held at the Kokhi Vahdat State Complex in Dushanbe on May 24.
The report, prepared as part of the IFC’s project for development of small and medium enterprises (SMEs) in Tajikistan, is based on the results of the independent survey conducted among 2,500 entrepreneurs and includes conclusions and general recommendations, which can be used to further develop government policy on support for entrepreneurship in Tajikistan.
The main objective of the report is to monitor changes in all main administrative processes and legal foundation regulating activity of small and medium enterprises (SMEs) in Tajikistan.
The previous survey was conducted in 2003.
Press release issued by IFC, in particular notes that although a certain improvement of business environment is to be observed in the country, a number of spheres still remain problematic for SMEs and need reforms. The most acute problem facing small and medium enterprises in Tajikistan is access to finances.
According to the survey, provided loans are short-term and do not stimulate long-term investments, interest rates on loans are high that make entrepreneurs cover needs in financing at the expense of internal resources. Besides, pledge demands are very high and difficult for fulfillment.
The survey notes that further moves to improve the situations could be joint carrying out of reforms in the field of providing access to financing and registration, realization and making of new changes to legislation, especially in the fields of licensing and inspection, direction of efforts to unsolved problems in the spheres of permits, standardization and taxation. It is also suggested that regulatory procedures should be simplified.
IFC, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services.
Tajikistan became a member of IFC in 1994.
