The European Bank for Reconstruction and Development (EBRD) is addressing the issue of youth entrepreneurship and employment by launching its flagship Youth in Business (YiB) program in Tajikistan.
The program is designed to provide better access to finance and relevant training to young entrepreneurs in the region, where 30 per cent of the population is aged between 18 and 34 years.
The EBRD funds of up to US$22 million will be offered to three local financial institutions Bank Arvand, MDO Humo and Investment Credit Bank.
It is expected that Imon International and Bank Eskhata will join the YiB program in the future.
The YiB program will also offer non-financial services for eligible small businesses. They will be provided by the Bank’s Advice for Small Businesses program and will help develop their entrepreneurial skills through training, advisory services and networking opportunities.
All the banks, which joined or will be participating in the YiB program are well established in Tajikistan. They are actively engaged in lending to youth-led or owned small businesses, which represent around 30 their portfolios.
According to an EBRD conducted survey, many young people in Tajikistan have a strong entrepreneurial mindset but very few of them have access to equal economic opportunities. Almost half of 250,000 youth-owned micro, small and medium-sized enterprises (MSMEs) in the country are seeking financial support but less than 15 percent are currently able to access funding.
The Bank’s YiB program is also designed to tackle other pressing issues young entrepreneurs are facing in Tajikistan. These include: finding and retaining staff, identifying new markets and customers.
The EBRD is one of the leading institutional investors in Tajikistan. It has to date provided more than €1 billion through 182 projects.
