DUSHANBE, August 30, 2014, Asia-Plus – Tajik Minister of Finance Abdusalom Qurbonov and the World Bank Country Manager for Tajikistan Marsha Olive have signed a grant agreement to finance the Tajikistan Agriculture Commercialization Project, according to the Ministry of Finance (MoF) Secretariat.
The new project is jointly supported by the World Bank and the International Finance Corporation (IFC) and is funded by a grant from the International Development Association (IDA) in the amount of US$22 million.
The project reportedly builds on past reforms that strengthened property rights in land, restructured farm ownership, and gave farmers the freedom to choose which crops to produce. It will further expand opportunities for farmers and enterprises to increase productivity and access to domestic and export markets.
According to the World Bank Tajikistan Country office, agriculture accounts for 23 percent of GDP and 48 percent of employment in Tajikistan. So it plays a major role in economic growth and poverty reduction. Through a set of complementary measures, including access to loans, grants and capacity building for small farmers, the project will increase the commercialization of farm and agribusiness products. Also, more medium-scale agribusinesses and producer associations will be able to market their products locally and internationally.
It will also build the government’s capacity for policy and regulatory reforms and support market research and analysis, and modernize the curricula of educational institutions for commercial agribusiness.
A parallel direct investment by IFC of US$1.9 million brings the project value to US$23.9 million. The joint efforts of IDA and IFC are expected to leverage private investment estimated at US$72 million.
