Value Chains research report Tajikistan final - Microfinance Centre

Summary and Conclusions
The study sought to conduct a rapid value chain analysis and to establish the supply
and demand of financial services, opportunities, challenges and linkages and to recommend
suitable financial products at both wholesale and retail level for further development. Owing
to diversity of the sub-sectors multiple methodologies ranging from desk studies, surveys,
case studies and depth interviews were utilized. The team did a fantastic job given the very
short time frame for this work. However, much more remains to be done. Other issues left to
explore include further examination of end market potential, and more detailed focus on
financial product design. The banks and financial institutions do seem to need further
support in terms of better understanding the value chains, analyzing their potential and the
role of financing in upgrading. Also, the banks and MFIs need further support in learning to
assess the cash flows of their clients and incorporating this information into product design.
Financing needed to further develop information and communication technologies
and improved logistics. However, the need for financing for these particular activities was
not explored during this review. With large Russian, Turk, Iranian and Kazakh firms
currently active in these services there may be some opportunities for franchising, leasing,
and other forms of within value chain financial support. These are service areas which will
benefit the economy overall and which will aid firms and producers in making more informed
choices about what to plant when and how to sell in order to get the highest return.
Much of the financing needed is also not value chain specific and unique for all.
Medium and long term credit is needed across the all value chains to support better
packaging, storing, and transporting. MFIs need to provide loans linked to Producers/Agro
inputs Dealers /Wholesalers/Processors to increase extension services. Currently the
extension services in country mostly oriented for donor support and in initial step could be
used by MFIs.
Generally all sub-sectors are poorly financed and the ratio of penetration finance
services low. Banking institutions start to think about linkages with extension services, but
still not developed. Supporting all actors of value chain are important, include collectors and
middlemen. Mobilization of farmers, access to finance, input optimization, technology
upgrade and modernization, increasing storage and processing, market development and
improvement in extension services are cross-cutting recommendations for all sub-sectors.
Financial products are needed to help farmers’ access process and market their
produce. Financing proper inputs (quality seeds, CPPs, fertilizers) and irrigation, store, a
cold chain and long life product processing can greatly stabilize the sub-sector and benefit
farmers. Processing is also limited despite increasing market opportunities. The sector is
linked as required by law and integration is gathering pace. Financing access to
improvement in processing technology and retail business practices are critical to the subsector.
We hopes that value chain analyses conducted in this survey will lead to
development appropriate financial products and the products will respond the needs of
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