The European Bank for Reconstruction and Development (EBRD) has approved a largest financing programme aimed at enhancing access to green technologies and climate adaptation measures for companies and households in Tajikistan. The financing package, totaling $10mn (€9.2mn), is set to empower the First Microfinance Bank (FMFB), one of the leading banks in the country, which operates a nationwide network comprising seven branches and 40 banking service centers.

The signing ceremony for this landmark financing took place with EBRD Managing Director for Financial Institutions, Francis Malige, and FMFB CEO, Mirzosafar Safarov, in attendance. This initiative represents the largest financing package extended to a financial intermediary in Tajikistan to date.

The financing comprises three loans aimed at fostering sustainable economic development. The first component is the Green Economy Financing Facility II (GEFF II), which amounts to up to $4mn (€3.7mn). This loan encourages both residential and commercial borrowers to invest in green and innovative solutions that enhance water efficiency and promote sustainable land management. GEFF II is a collaborative effort launched by the EBRD and the Green Climate Fund (GCF), bolstered by donor support from South Korea, Austria, and the GCF.

The second component is the Youth in Business Programme (YiB), providing up to $3mn (€2.7mn). This programme targets micro, small, and medium-sized enterprises (MSMEs) led or owned by young individuals under the age of 35. Eligible borrowers will benefit from grants and concessional co-financing designed to stimulate inclusive lending and promote youth entrepreneurship.

The third component is the Women in Business Programme (WiB), which offers up to $3mn (€2.7mn). This loan is designed to support women entrepreneurs and is backed by the Women Entrepreneurs Finance Initiative.

Additionally, the two banks have signed a mandate letter for FMFB to receive the remaining $10mn (€9.2mn). Future funding under GEFF II and YiB will involve similarly sized loans of up to $5mn (€4.6mn) each.

With this financing, the EBRD continues to demonstrate its commitment to fostering economic growth and sustainability in Tajikistan. Since its inception, the EBRD has invested nearly €992mn across 175 projects in the country, supporting various sectors and promoting inclusive economic development.