Bank Arvand, which focuses on underserved individuals and small businesses in Tajikistan, particularly in rural regions, has received a USD 5 million local-currency loan from IFC. Serving more than 58,000 borrowers and an IFC partner since 2019, the bank will use the long-term financing to reach entrepreneurs who often struggle to access credit.
The need is significant. Small and medium enterprises generate around 60% of Tajikistan’s GDP, yet together with micro enterprises they face a financing gap of around 20% of GDP, almost USD 3 billion. Housing finance is also scarce for low-income households, especially in rural areas.
The loan will expand lending to micro and small enterprises, including women-owned and rural businesses, and increase microloans that help low-income rural families build new homes or renovate existing ones. It will also support energy-efficiency initiatives.
“Micro businesses and women entrepreneurs are a key part of Tajikistan’s economy,” says Shoira Sodiqova, CEO of Bank Arvand. “This financing from IFC will make it possible for more of them to access credit, and help them to expand and create jobs.”
By connecting international finance to local lending, the partnership helps underserved communities improve their homes, grow their businesses and build more resilient livelihoods.
