Private Sector Development in Tadjikistan

  The project operates in  four major areas of : Development of the agricultural and non-agricultural businesses to strengthen the rural development. Value chain approaches are supported to connect the agricultural production with value adding processing and marketing in the food and beverage industries. The primary production and value adding steps link rural and urban markets and open new alternatives and a broadening market for businesses especially along the value chains. Improvement of access to finance for MSME in the rural areas. Through cooperation and technical support on the meso- and macrolevel, suitable products are to be developed and the MFI enabled to serve their clients while strengthening their own financial viability. To this end the Apex of the MFI will be supported .Risk- and Portfolio-management, appraisal methodologies, product development and savings mobilization are some of the topics to be covered according to the demand. At the same time the framework for credit- and saving security systems and refinancing aspects have to be addressed with the respective stakeholders. A permanent dialogue and consultancy to National Bank of Tajikistan (NBT) and MOEDT takes place to ensure an enabling (legal) environment with suitable supervision and sound development of the sector.   Strengthening of links between local/regional economic activities with cross border markets (Afghanistan, Kyrgyzstan,..). Existing constraints of infrastructure (e.g. existence of marketplaces), organizational problems (cross-border services) and legal issues (customs procedures) are tackled and through public-private dialogue removed. Consultancy in specific related topics is provided to the respective departments on the macro-level.   Economic-policy dialogue on the macro-level. Goal is to prepare the basis for transparent economic indicators, at the same time to provide consultancy to departments of the MOEDT and the NBT in specific topics according to demand. An Information exchange between national, international economic and public stakeholders is supported.   The tender will be related to the second element, the strengthening of the MFI as well as the interaction with key stakeholders on all policy, regulatory, and technical aspects of the development of the sector. The apex institution of the MFI, AMFOT (Association of Microfinance Organizations of Tajikistan) currently serves 80 Member MFI and is in constant coordination and dialogue with other organizations and governmental departments. The services comprise dialogue forums, legal advice and coordination; AMFOT supports the MFI to offer suitable financial products to agricultural and other businesses individually and along the agricultural and non-agricultural value chains (including ‘green finance’ and ‘start-up’ products). Connected to the apex is a training center (CTMT) which is offering certified trainings, not only to staff of members but as well to non-members, both MFI and FI.  A refinancing institution (Bovari va Hamkori) is established. GIZ has been supporting the MF sector for years, as have other development partners. The support is focusing primarily on the structural development of the organization as an enabler for the MFI. Another important task is the savings mobilization. In close cooperation with other development partners and the respective ministry departments, strategic exchange and discussions regarding the further development of financial systems development issues is indispensable as well as networking with the associations and consulting institutions in the country.