IFC Partners with Bank Arvand to Boost Small Business, Housing, and Energy Efficiency in Tajikistan
· IFC’s financing to Bank Arvand will support micro-housing projects and micro entrepreneurs, including women.
· The project will also support energy efficiency initiatives.
Dushanbe, Tajikistan, September X— To support Tajikistan’s smaller businesses, strengthen support for women entrepreneurs, improve energy efficiency, and boost housing finance, IFC is providing a $5 million loan in local currency to the country’s Bank Arvand.
The long-term financing will allow Bank Arvand, an IFC partner since 2019, to ramp up its lending entrepreneurs who often struggle to access financing, as well micro and small enterprises, including those owned by women and other. The loan will also help increase microloans to low-income families across rural Tajikistan, helping them to build new homes or renovate existing ones.
Bank Arvand is a well-established financial services provider in Tajikistan, with a focus on supporting underserved individuals and micro and smaller businesses, particularly in rural regions. The company serves more than 58,000 borrowers throughout the country.
"Micro businesses and women entrepreneurs are a key part of Tajikistan's economy. This financing from IFC will make it possible for more of them to access credit, and help them to expand and create jobs,” said Shoira Sodiqova, CEO of Bank Arvand. “In addition, we aim to help address the current lack of access to affordable housing finance.”
Small and medium enterprises (SMEs) contribute around 60 percent of Tajikistan’s GDP but, together with micro enterprises, face a financing gap estimated at around 20 percent of GDP, or almost $3 billion. Informal micro businesses also represent the main source of income for many who lack access to affordable financial products and services.
Housing finance is also scarce for many low-income households, especially in rural areas.
"By partnering with Bank Arvand, IFC aims to unlock opportunities for thousands of individuals and small businesses, including women-owned enterprises, while strengthening resilience in Tajikistan’s banking and housing sectors,” said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. “This collaboration will also advance energy-efficient initiatives, fostering innovation and driving sustainable economic growth."
For more information about Bank Arvand, please visit: https://arvand.tj.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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