Social Issue

Tajikistan remains one of the poorest countries in the world. The social and economic well being of the population deteriorated following the COVID-19 outbreak in the second half of 2020.

Many families, heavily reliant on remittances from members working abroad, mostly in Russia and Kazakhstan, faced substantial hardship as remittances declined substantially during the pandemic.

Promoting domestic business opportunity is a key driver to reduce poverty in the country and financial access to grow micro enterprises remains very limited.

Our Response

The Fundación Netri has provided Arvand with a loan in local currency with the objective to support its efforts to service micro-entrepreneurs and ultimately improve their well-being. Netri has supported Arvand with loans since 2019.

Arvand has its roots in a microfinance project launched in 2002 by the NGO ACDI / VOCA offering services to small entrepreneurs, particularly in rural areas.

Over time it grew to be one of the largest microfinance entities in the country and in 2019 it obtained its banking license. Its focus continues to serve microentrepreneurs, especially in the agriculture sector, but it has most recently also started providing credit to SMEs.

Expected Social Impact

With this investment of the Fundación Netri, it is estimated that Arvand will be able to provide over 600 microloans to their clients, with the expected outcome of enhancing their business opportunities, incomes and wellbeing.