Value Chains research report Tajikistan final - Microfinance Centre
Value Chains research report Tajikistan final - Microfinance Centre
Value Chains research report Tajikistan final - Microfinance Centre
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The transaction between the Input dealer until consumers request financial<br />
interventions, which help VC players be able to operate in condition of strong<br />
competition, and effectively puts consumers in control - they demand better quality<br />
produce at lower prices. Such produce can only be delivered if all actors in production<br />
work efficiently and cooperate effectively.<br />
The idea of <strong>Value</strong> Chain Finance is very important, but should be developed in<br />
combinations of knowledge improvement and transferring know-how. The VCF help<br />
only under the reality that the relationship between producers and processors is no<br />
longer antagonistic (one tries to get prices up, the other tries to reduce prices), and<br />
collaboration bring synergy. Both groups should find ways to cooperate in order to<br />
compete with a <strong>Value</strong> Chain from another area or country and financing all activities<br />
which bring benefits to both players (like financing inputs to farmers through input<br />
dealer, or financing the increasing capacity of processors to be able process more raw<br />
materials and to increase quality and to reduce transaction costs. Goal of using VCF<br />
analyses to finding financial schemes/products are thus created in order to provide<br />
these assurances at all stages of the production process.<br />
The VCF is an efficient tools for opening the bottlenecks and development<br />
production, processing and supply products for internal and export markets. More<br />
detailed about VC actors and need for their financing we provided below.<br />
4. Current engagement of MFIs in financing VC actors.<br />
Currently there are 122 microfinance institutions operates in <strong>Tajikistan</strong> 2 , including<br />
34 microcredit deposit organizations, 43 microlending organizations and 45<br />
microlending funds. The quality and quantity of microfinance organizations is<br />
continuously improving, and so does the number of loans disbursed by these<br />
organizations. The entire microfinance sector is serving more than 550,360,468 somoni<br />
(MFIs AMFOT members) and 141,914 clients. According to AMFOT bulleting only top<br />
13 largest MFOs in <strong>Tajikistan</strong> have more than 461,122,115 somoni loan portfolio<br />
between them, serving 115,973 clients.<br />
All these microfinance institutions are typically engaged in agriculture financing,<br />
which is already high element of VCF. From other side MFIs finance agribusiness<br />
activity involved in supply inputs, seeds, machinery and processing operations by<br />
searching clients. Also MFIs finance construction and repairing existing warehouses<br />
and storages, finance the working capital for wholesalers and retailers of agricultural<br />
products. There are also some MFIs which serve processors (dairy, grain mill), input<br />
(seeds, fertilizers) producers and traders as well as procurement companies (see table<br />
below). These institutions managed to extend their services beyond the producers<br />
thanks to the external guidance and technical assistance.<br />
2 National Bank Web site provides names, contact persons, addresses and telephones of these organizations:<br />
http://nbt.tj/ru/banking_system/non_banking_institutions.php<br />
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