Tajik microfinance institution joins the EBRD’s climate resilience credit line

Investor

Micro-finance institution

Location

Tajikistan

Investment

Climate resilient technologies in agriculture, industry and residential sector

Investment Size

$2 million

This project is supported by the UK, Climate Investment Funds (CIF) and the EBRD’s Early Transition Countries (ETC) Fund. The donors to the ETC Fund are: Canada, Finland, Germany, Ireland, Japan, Korea, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, Taipei China and the United Kingdom.

The $2 million equivalent credit line will be provided in Tajik somoni by the EBRD and the Pilot Program for Climate Resilience (PPCR) in equal portions to Humo, the third largest non-bank microfinance institution (MFI) in Tajikistan. The MFI will on-lend funds to households and businesses in Tajikistan to adopt technologies and practices to reduce soil erosion, to improve the use of water and energy resources.

In addition to funding, the project will benefit from advisory package funded by the UK government through the Department for International Development (DFID) and by the EBRD Early Transition Countries Fund (ETC).

Humo has a strong presence outside the capital Dushanbe and in rural areas and serves micro, small and medium-sized enterprises, including small farmers and households which often have no other source of financing.

“Humo is a longstanding EBRD client, known for its significant operations in the south of Tajikistan. I am delighted that such a partner is now joining this important new facility, providing investments for equipment that will help businesses grow irrespective of changing climate conditions,” said Richard Jones, Head of the EBRD Dushanbe Resident Office.

Mavsuda Vaisova, General Director of Humo, said: “We are honoured to join the new EBRD initiative. With the new EBRD loan we will help our clients to adopt innovative technologies, develop alternative sources of energy, implement efficient methods of land cultivation and increase the productivity of farmlands and businesses. The loan will also help our clients to overcome the consequences of the world financial crisis; it is vitally important that this financing will be available in local currency.”

Earlier this month, Bank Eskhata became the first recipient of an EBRD loan under the new financing facility.

* Donors to the EBRD ETC Fund are: Canada, Finland, Germany, Ireland, Japan, Korea, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, Taipei China and the United Kingdom.