Tajikistan

Economy:
Tajikistanis' average per capita income is less than $100 a month-the lowest of the 15 former Soviet republics. Nearly 60 percent of the country's seven million people live in abject poverty and fully half of the labor force is unemployed. Agriculture accounts for over 67 percent of the country's jobs; services account for 25 percent, and industry, for 7 percent of employment. Despite high poverty and unemployment, the Tajik economy has grown steadily since 1997.

In the early transition economies of Central Asia, microenterprise plays a predominant role in poverty reduction and creating the conditions for sustained growth in income and employment opportunities. As was the experience of all other former Soviet countries, Tajikistan started an agonizing transformation process of its economy after the break-up of the Soviet Union. This transformation was made even more difficult due to the civil war that lasted from 1992 until 1997. In Soviet times, Tajikistan was the poorest of the 15 Soviet republics and, today, it retains that notoriety.

Climate for microfinance:
• High unemployment and poverty have created a huge demand for microcredit among Tajikistanis wanting to launch small trade and manufacturing businesses.
• Loan capital is scarce.
• The microfinance law demonstrates government commitment to microfinance and non-profit institutions.
• The National Bank of Tajikistan supports an expanding microfinance sector.

Created in 2003, FINCA Tajikistan is the youngest affiliate in the Eurasia region. After a slow startup period, FINCA Tajikistan was restructured and transformed into a MicroDeposit LLC in 2006. Currently serving clients through nine branches and 16 sub-branches in Dushanbe and the southern and northern regions, FINCA is ranked as the second microfinance institution in Tajikistan, out of over 100 operating in the country.