The European Bank for Reconstruction and Development (EBRD) and Tajikistan have embarked on a collaborative effort to promote gender equality and bolster support for women's entrepreneurship, EBRD disclosed on April 29.
This landmark agreement, formalized through a memorandum of understanding signed by Firdavs Nazrimad Tolibzoda, Chairman of the National Bank of Tajikistan, and Odile Renaud-Basso, President of the EBRD, heralds a new era of cooperation aimed at advancing economic opportunities for women in Tajikistan.
At the heart of this partnership lies the development of the Women Entrepreneurs Finance Code (WE Finance Code), a visionary initiative designed to galvanize financial institutions, regulators, development banks, and other stakeholders in collectively enhancing financial support for women-led micro, small, and medium enterprises (MSMEs). By embracing this globally recognized multi-stakeholder approach, Tajikistan endeavors to dismantle barriers and bridge financing gaps for women entrepreneurs, thereby catalyzing economic growth and prosperity.
President Renaud-Basso articulated the shared commitment, stating,
"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."
This collaborative endeavor seeks to not only address existing financing challenges but also foster innovative solutions to mobilize capital essential for the expansion of women-owned businesses.
As part of its commitment to empowering women entrepreneurs in Tajikistan, the EBRD is injecting fresh capital and unlocking new growth opportunities through a $5 mn (€4.6 mn) loan to Bank Arvand (Arvand), one of the country's prominent lenders. This financing, extended under the EBRD's Women in Business (WiB) program for Central Asia, supported by the Women Entrepreneurs Finance Initiative, aims to provide vital financial resources to women-owned and managed enterprises. Additionally, Arvand will benefit from technical assistance under the WiB program, facilitating the promotion of women's entrepreneurship and business activity. Moreover, clients of Arvand, particularly women-led small and medium-sized enterprises, will gain access to invaluable technical advice through the EBRD's Advice for Small Businesses program.
Furthermore, the EBRD's commitment to fostering trade and cooperation in Tajikistan is exemplified through a $1 mn (€0.9 mn) limit under the Trade Facilitation Programme (TFP) to MDO HUMO (HUMO), one of the country's leading microlenders. This financing initiative will empower HUMO to expand its trade-finance business, thereby facilitating local firms' import and export activities and supporting the growth of Tajikistan's economy.
With an impressive track record of investment totaling €947 mn through 168 projects in Tajikistan, the EBRD continues to be a steadfast partner in the country's journey towards inclusive economic development and prosperity.
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