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IFAD US$39 million investment to stimulate inclusive economic growth in Tajikistan

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Tajikistan, Country Programme - April 2015 ©IFAD

Rome, 8 February 2018 – The International Fund for Agricultural Development (IFAD) and the Republic of Tajikistan signed a financing agreement today to reduce poverty and stimulate inclusive economic growth in poor rural communities.

The agreement for the Community-Based Agricultural Support Project was signed by Gilbert F. Houngbo, President of IFAD, and Qahhorzoda Faiziddin Sattor, Minister of Finance, Tajikistan.

The total cost of the project is US$39.3 million, including a $15.3 million loan and a $15.3 million grant, each from IFAD. The government contribution is estimated at $4.9 million while approximately $1.6 million will be provided by the beneficiaries. In addition, a contribution of about $1.9 million is expected from private service providers operating in the field of agricultural mechanization. The Food and Agriculture Organization's (FAO) co-financing of $0.25 million through the Technical Cooperation Programme will contribute towards technical assistance and training of machinery service providers. The project will be implemented over six years.

The project will be implemented in Devashtich, Dusti, Jaihun, Norak, Rasht, Shahriston and Tajikobod districts, where poverty levels are high and there is potential for agriculture development. The project aims to reach over 48,000 households.

"IFAD's support through this project is to improve access of communities to productive infrastructure and services leading to sustainable agricultural production and equitable returns," said Hamid Abdouli, IFAD's Country Programme Manager a.i. for Tajikistan. "We hope to do this by strengthening village organizations, developing business-oriented farmer groups and building the capacities of both public and private service agencies to deliver goods and services to smallholder farmers."

In Tajikistan, agricultural productivity falls far below its potential,  especially for key smallholder staples such as wheat, potatoes and apples. A  primary cause is the lack of access to modern technologies, notably farm equipment and machinery. The Community-Based Agricultural Support Project will address these problems while supporting and in alignment with, key priorities of the Government for ensuring food security and nutrition. The project will incorporate a strategy to ensure women's inclusion in community development and equitable access to opportunities.

Since 2008, IFAD has financed four rural development projects in Tajikistan, investing $80 million out of a total $94 million in project costs. These projects and programmes have benefitted over 288,000 rural households.

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Press release No.: IFAD/09/2018

IFAD has invested in rural people for 40 years, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided about US$19.7 billion in grants and low-interest loans to projects that have reached some 474 million people. IFAD is an international financial institution and a specialized United Nations agency based in Rome – the UN’s food and agriculture hub.