DUSHANBE, July 20, Asia-Plus — Catering to its strategic objectives of poverty alleviation and the promotion of Islamic finance, the Islamic Development Bank (IDB) approved a loan of 10 million US dollars and a technical assistance grant of 330,000 for a microfinance project in the rural areas of Tajikistan, press release issued by the IDB head office in Jeddah on July 7, 2009 said.
The project aims to complement the Tajikistani government’s efforts in achieving economic growth and lessening poverty by increasing the access of rural populations to reasonable and reliable microfinance services, as well as encouraging Sharia’h-compliant microfinance products in the region.
Tajikistan joined the IDB in 1996 and as of June 2009, there were a total of 33 IDB operations. In 2008, the IDB Country Poverty Assessment (CPA) exercise found the limited availability of affordable microfinance facilities to small-scale farmers as a major constraint in alleviating poverty.
This project will enable the socio-economic uplifting of the rural poor, the establishment and expansion of strong Sharia’h-compliant microfinance and increased micro-entrepreneurs, which will in turn generate more job opportunities. In line with IDB objectives, it is also expected to contribute to the empowerment of women as it will be targeting women micro-entrepreneurs in rural areas, and women will constitute at least 50% of the microfinance beneficiaries.
The total project cost is estimated at about US$ 20.08 million. The project will deepen the outreach of microfinance services for the marginalized, and have multiplying positive effects for Tajikistan. The IDB expects that through these efforts, the long-term outcome will be economic development and poverty reduction.
