Women-owned businesses, households, and micro, small, and medium-sized enterprises (MSMEs) in Tajikistan are expected to gain better access to financing, green technologies, and climate adaptation solutions through a new funding initiative from the European Bank for Reconstruction and Development (EBRD). The development is aimed at supporting business growth while encouraging investments in environmentally sustainable technologies across the country.

As part of the initiative, the EBRD will provide a financing package of up to US$15 million (€12.9 million) to two local financial institutions — the Investment and Credit Bank of Tajikistan (ICB) and Bank Arvand. The funding will help expand lending to businesses and households while supporting Tajikistan’s transition toward a greener and more resilient economy.

ICB, which operates a network of 8 branches and 41 banking service centres across all regions of Tajikistan, will receive a total of US$10 million (€8.6 million) through two separate loan facilities.The first loan, worth up to US$5 million (€4.3 million), will be provided under the Tajikistan Green Economy Financing Facility II (GEFF Tajikistan II).

The funding will enable residential and commercial borrowers to invest in green and innovative technologies that improve water efficiency, support sustainable land management, and help address environmental challenges. The programme is co-financed by the Green Climate Fund (GCF) and supported by donor contributions from South Korea, Austria, and the GCF.The second loan of up to US$5 million (€4.3 million) will be extended under the EBRD’s Women in Business programme for Central Asia.

Supported by the Women Entrepreneurs Finance Initiative, the financing will be provided in local currency and is designed to improve access to capital for women-led enterprises. The programme aims to address financing gaps that often limit the growth potential of women entrepreneurs and small businesses.

This transaction also marks an important milestone for Tajikistan, as it is the first loan in the country to receive support from the European Union under its Global Gateway investment strategy. The EU will contribute technical assistance and a first-loss counter-guarantee mechanism, which helps reduce risks for lenders and encourages greater financing for businesses that may not qualify for traditional lending.

By combining risk-sharing tools with targeted support, the initiative is expected to create new opportunities for women-led SMEs and other underserved businesses across the country.Bank Arvand will receive a separate loan of up to US$5 million (€4.3 million) under the same GEFF Tajikistan II programme.

The bank, which operates 12 branches and 61 banking service centres across more than 45 cities in Tajikistan, will use the funding to finance climate change mitigation and adaptation technologies. The investment will support the continued expansion of Arvand’s green lending activities while making environmentally sustainable financing more accessible to businesses and households. Like the ICB facility, these loans will also be available to borrowers in local currency.

The latest financing package further strengthens the EBRD’s long-term commitment to Tajikistan. Since beginning its operations in the country, the bank has invested more than €1 billion across 192 projects, supporting economic development, private sector growth, infrastructure improvements, and sustainability initiatives.

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