IFC partners with Bank Arvand to boost SME financing in Tajikistan

The International Finance Corporation (IFC) is providing a US$5 million loan in local currency to Bank Arvand to strengthen access to financing for small businesses, micro entrepreneurs, and women-owned enterprises across Tajikistan.

The funding will enable Bank Arvand, an IFC partner since 2019, to expand its lending to micro and small enterprises (SMEs), particularly in rural areas where access to affordable credit remains limited. The facility will also support micro-housing finance and energy efficiency initiatives aimed at improving living standards and promoting sustainability.

SMEs play a crucial role in Tajikistan’s economy, contributing around 60% of GDP. However, together with microenterprises, they face a financing gap estimated at nearly US$3 billion, or roughly 20% of GDP. Limited access to formal credit continues to hinder business growth, especially for informal microenterprises and women entrepreneurs.

Bank Arvand currently serves over 58,000 borrowers nationwide and is one of Tajikistan’s key financial institutions supporting underserved communities.

“This financing from IFC will make it possible for more of them to access credit, and help them to expand and create jobs,” she added.

Wiebke Schloemer, IFC Director for Türkiye and Central Asia, added: “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.”

The investment is supported by the International Development Agency’s Private Sector Window (IDA PSW), which provides a first-loss guarantee and local currency backing under IFC’s MSME Finance Base of the Pyramid Platform. The initiative aims to close funding gaps, support small business growth, and drive sustainable economic development across emerging markets.