Companies and households in Tajikistan will gain improved access to green technologies and climate adaptation measures, following the approval of a new financing program by the European Bank for Reconstruction and Development (EBRD) for the First Microfinance Bank (FMFB). The bank operates a nationwide network of seven branches and 40 banking service centers across all regions of Tajikistan. The funding will also support the growth of businesses owned or led by young entrepreneurs and women.
A financing package totaling $10 million (€9.2 million) was signed at a ceremony attended by EBRD Managing Director for Financial Institutions, Francis Malige, and FMFB CEO, Mirzosafar Safarov.
The first loan, up to $4 million (€3.7 million), falls under the Tajikistan Green Economy Financing Facility II (GEFF II). This loan will encourage residential and commercial borrowers to invest in green technologies, focusing on water efficiency and sustainable land management. GEFF II is supported by donor funding from South Korea, Austria, and the Green Climate Fund (GCF).
The second loan, up to $3 million (€2.7 million), is part of the EBRD’s Youth in Business program, which targets micro, small, and medium-sized enterprises (MSMEs) owned by young entrepreneurs under 35. Borrowers will also receive grants and concessional co-financing to promote inclusive lending and foster youth entrepreneurship.
The third loan, up to $3 million (€2.7 million), is part of the EBRD’s Women in Business program, supported by the Women Entrepreneurs Finance Initiative, to promote women-led businesses.
In addition, FMFB signed a mandate letter with EBRD for an additional $10 million (€9.2 million), with $5 million (€4.6 million) each allocated under GEFF II and Youth in Business at a later stage. This $20 million financing package marks the largest offering to a financial intermediary in Tajikistan to date.
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