DUSHANBE, February 16, 2009, Asia-Plus — International Finance Corporation (IFC) is launching the first Corporate Governance Pilot Program in Tajikistan.
According to press release issued by IFC Dushanbe office in Russian, “open joint-stock company (OJSC) Sughdagroserv (SAS) is the first company that cooperates with IFC in Tajikistan as part of the IFC Central Asia Corporate Governance Project.”
Participation in the IFC program will improve opportunities of SAS to attract investments and show demonstration effect of benefits of corporate governance for the whole Tajik business community, particularly in the agrarian sector, the press release said.
The agrarian sector is the main source of income for the majority population of Tajikistan, using more than 60 percent of manpower. However, equipment and managerial practice are out-of-date and financing, which is essential for farmers for modernization and expansion of their activities, remains limited.
The Sughdagroserv is the company, whose shareholders are only farmers and which operates primarily in the rural areas of Tajikistan, promoting increase in incomes of local farmers through creation of opportunities for independent production and commercial activity of a farm, according to press release.
IFC will provide CAS with assessment of the current practice of corporate governance of the company, help the company introduce modifications into the structure and operations of the board of directors and executive council, bringing the charter into compliance with the best international practice as well as conduct consultations and training for shareholders and personnel, press release said.
“The financial crisis is felt in all spheres of economic activity throughout the whole of Tajikistan, and therefore, consultations by the IFC experts are timely and necessary. Improvement of corporate governance will give us more chances to attract investments and expand our activity,” the SAS executive director Abdusattor Haidarov said.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year.
