Dushanbe, Tajikistan, March 31,
2010—IFC, a member of the World Bank Group, announced the results
of its South Tajikistan Cotton Lending Project that was completed successfully
in March. With support from the Canadian International Development Agency,
IFC’s efforts to expand access to finance for cotton farmers in South
Tajikistan resulted in almost $5 million of new loans from partner banks,
Tojiksodirotbank and First Microfinance Bank.
IFC also helped its client farms increase
yields and profitability significantly and improve the working conditions
for women cotton workers. An independent consultant, Andrina Lever,
said the project had improved the livelihood of over 5,800 women working
for cotton farms and their families. The project received the runner-
up position at IFC’s CEO Gender Award for 2010. The yields of the
project’s cotton farms were 37 percent higher than on those farms that
were not part of the project.
Qurban Rahmatov, Deputy Chairman of Tojiksodirotbank,
said, "TSB has been working with IFC for the past three years on cotton
lending in the Kurgan-tube, Farhor, Kulyab, and Yavon branches, and the
results have been outstanding. We have lent almost $5 million, with
over 96 percent of loans repaid. As a result of the advisory services
provided by IFC, we now have a sound methodology to lend to the cotton
sector. This project has shown us that we can do cotton lending in
a profitable and sustainable manner."
Shahbaz Mavaddat, IFC Director for Southern
Europe and Central Asia, said, “This project has strong demonstration
effect, as other financial institutions have started lending to the cotton
sector. As a result, cotton farmers have increased access to finance from
the formal financial sector.”
IFC is the only international financial
institution focused exclusively on the private sector, the engine of sustainable
development in emerging markets. Along with IBRD, it is currently
seeking a capital increase to strengthen its ability to create opportunity
for the poor in developing countries—including by advising cotton farmers
in Tajikistan on agronomic techniques and working condition issues.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $ 14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.
About Canadian support
The Canadian International Development
Agency (CIDA) is Canada’s lead agency for development assistance. CIDA’s
aim is to: manage Canada’s support and resources effectively and accountably
to achieve meaningful, sustainable results and; engage in policy development
in Canada and internationally, enabling Canada’s effort to realize its
development objectives. For more information visit: www.cida.gc.ca.