The International Development Association (IDA), the arm of the World Bank Group (WBG) that offers interest-free credits and grants to the world’s 82 poorest countries, is planning to disburse a grant of USD 22 million to support the “Tajikistan Agriculture Commercialization Project”[1] of the government of Tajikistan. This project will provide access to loans and grants to small farmers from the government as well as contributing to capacity building among farmers. With the help of the grant, the government will aim to implement policy and regulatory reforms, support market research and modernize education in commercial agribusiness. Additionally, the International Finance Corporation (IFC), the private-investment arm of WBG, has announced a “direct investment” of approximately USD 2 million to support the commercialization of the country’s agriculture sector. It is anticipated that the two streams of funding will leverage private investment in the country totalling USD 72 million.
In a statement, Ms Marsha Olive, WBG’s Country Manager in Tajikistan, said that “farmers currently lack options to bring their products to market, reducing their income and overall economic development in Tajikistan. This project will expand opportunities for farmers by introducing modern marketing methods and commercial practices that add value to agricultural products. As small farmers become successful businesses, they will be able to create jobs and contribute to economic prosperity”[1].
As of 2014, WBG has net commitments of approximately USD 221 million in Tajikistan, 46 percent of which is in agriculture and rural development. Globally, WBG had commitments of USD 52.6 billion in loans, grants, equity investments and guarantees as of December 2013.
By Alíz Crowley, Research Associate
About The World Bank Group (WBG)
Headquartered in the US, the World Bank Group (WBG) is a multilateral development organization whose mission is to improve living standards for people in developing countries. As of 2014, the WBG encompasses the International Bank for Reconstruction and Development (IBRD) owned by 188 member nations. Additionally, the WBG also includes the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID). WBG has 10,000 employees and operations in approximately 120 countries as of 2014. WBG had commitments of USD 52.6 billion in loans, grants, equity investments and guarantees as of December 2013.
Sources and Additional Resources
[1] World Bank Group Press Release, World Bank Group Supports Agriculture Commercialization in Tajikistan
MicroCapital, July 27, 2014, Absolute Portfolio Management’s Vision Microfinance Funds Loan $14m to Microfinance Institutions (MFIs) in Armenia, China, India, Peru, Tajikistan
MicroCapital, July 25, 2014, World Bank Group (WBG) Loans $12m, Donates $12m to Government of Mozambique for Financial Sector Reform, Including to Boost Financial Inclusion
MicroCapital, July 22, 2014, World Bank Group (WBG) Loans $500m to Government of Indonesia for Financial Sector Reform, Including to Boost Financial Inclusion
MicroCapital Universe Profile: The World Bank Group (WBG)
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