The Tajik government is targeting a 2.5-fold increase in foreign investment over the next 15 years, as outlined in the country's Investment Strategy for 2026-2040, approved on June 30. The document sets ambitious goals to attract US$12.89 billion in foreign investments by 2040, up from US$5.07 billion in 2024.
The strategy envisions a dramatic increase in direct foreign investments, aiming for an 11.4-fold rise, from US$459.1 million in 2024 to US$5.24 billion by 2040. The government's main objectives include diversifying the economy, developing infrastructure, creating jobs, and improving the investment climate.
The strategy highlights Tajikistan's significant potential for green investments, particularly in hydropower, solar, and wind energy. Legal reforms and the creation of free economic zones are key elements of the plan to simplify investment processes and improve the business environment.
Tajikistan also seeks active cooperation with the private sector through public-private partnerships and aims to foster innovative projects, particularly in IT and digital economies. Priority sectors for investment include green energy, high-quality manufacturing, agriculture, and infrastructure.
Positive trends and progress in investment
The strategy reflects positive trends in foreign investment. Between 2020 and 2024, foreign investment in Tajikistan reached US$11.6 billion, with US$5 billion recorded in 2024 alone, 11 times the level in 2020. Around 72% of direct foreign investment between 2020 and 2024 went into the industrial sector, with mining (53%) and manufacturing (19%) as the leading areas. The remainder was allocated to construction, agriculture, transportation, trade, services, and finance.
China, the U.S., and Russia were the primary investors, accounting for over 76% of the foreign investment during this period. China contributed 60.1%, the U.S. 8.9%, and Russia 7.3%.
Tajikistan’s investment opportunities
Tajikistan boasts considerable investment opportunities due to its abundant natural resources, including water resources, hydropower, rare metals, and favorable climate conditions. Ranked eighth globally in hydropower potential, the country plans to fully transition to renewable energy by 2032. The country also holds vast potential in solar and wind energy.
Tajikistan has identified more than 800 mineral deposits, including copper, gold, silver, and lithium, which are crucial for the green transition. The country also offers opportunities for investment in light industry, agriculture, tourism, healthcare, and other sectors.
Key factors for attracting investment include political stability, access to both internal and external markets, state support, a skilled workforce, and free economic zones, as well as a favorable geographical location.
Challenges and barriers to investment
Despite the promising outlook, the strategy also identifies several obstacles to attracting greater investment in Tajikistan. Key issues include:
- Power supply limitations, particularly in winter months.
- Underdeveloped transport and road infrastructure, including air travel and railways.
- Limited capacity of transportation hubs.
- Slow internet speeds.
- High ticket prices and a limited number of flights.
- Shortage of specialists, particularly in technical fields.
- Complex permitting processes and difficulties in acquiring land.
- Lack of companies with complete innovation chains.
- Tax administration issues and complicated tax benefits.
- Complicated export procedures and insufficient information on foreign markets.
- Limited support for projects through public-private partnerships.
- Low rankings in international investment attractiveness indexes.
These factors, according to the strategy’s developers, pose significant barriers to the country’s development and need to be addressed to attract more investment.
By overcoming these challenges, Tajikistan aims to create a favorable environment for long-term economic growth, driven by increased foreign investment and private sector involvement.
