The European Bank for Reconstruction and Development (EBRD) and Tajikistan have agreed to cooperate on gender equality and support for women’s entrepreneurship.
The EBRD Resident Office in Dushanbe says a memorandum of understanding (MoU), signed by the Chairman of the National Bank of Tajikistan, Firdavs Nazrimad Tolibzoda, and EBRD President, Odile Renaud-Basso, here on April 29 will help the country develop the Women Entrepreneurs Finance Code (WE Finance Code).
The WE Finance Code is a commitment by providers of financial services, regulators, development banks and other stakeholders to jointly increase financial assistance to women-led micro, small and medium enterprises.
This globally accepted multi-stakeholder approach will help eliminate constraints and financing gaps for women entrepreneurs in Tajikistan and will add value to the economy.
President Renaud-Basso said: “Jointly, we’ll be aiming to engage public and private-sector partners from
Tajikistan’s financial sector to improve the collection, analysis and use of data related to the financial inclusion of women-led enterprises. It will help to close financing gaps for women entrepreneurs and provide innovative solutions to mobilize the capital required for their growth.”
The EBRD is providing fresh funds and creating new growth opportunities for women-owned and managed businesses in Tajikistan by extending a US$ 5 million (€4.6 million) loan to one of the country’s largest lenders, Bank Arvand (Arvand). The loan is provided under the EBRD’s Women in Business (WiB) program for Central Asia, which is supported by the Women Entrepreneurs Finance Initiative (We-Fi). Arvand will also benefit from technical assistance under the WiB, which will help promote women’s entrepreneurship and business activity. Its clients, women-led small and medium-sized enterprises, will also receive access to technical advice through the Bank’s Advice for Small Businesses program.
The Women Entrepreneurs Finance Initiative (We-Fi) supports women entrepreneurs by scaling up access to financial products and services, building capacity, expanding networks, offering mentors, and providing opportunities to link with domestic and global markets.
A US$ 1 million (€0.9 million) limit under the EBRD’s Trade Facilitation Program (TFP) to one of the country’s leading microlenders, MDO Humo (Humo), will enable Humo to scale up its growing trade-finance business. In line with the EBRD’s strategic objective to promote interregional trade and cooperation, this deal will help local firms to import necessary goods, services and equipment, and to export their products.
The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 73 countries, as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated.
To date, the European Bank for Reconstruction and Development has invested €947 million through 168 projects in Tajikistan.
