Micro-Loans help to strengthen livelihoods in Tadjikistan.

Project number: 5251

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Situation: Tajikistan is the smallest country in Central Asia and the poorest of the former Soviet republics. Since the civil war in 1992-1997, the economic situation has not improved much. Approximately 60% of the population still lives under the poverty level with less than 1, 50 € per day to live on. Often, husbands and fathers seek employment in other countries such as Russia. Too often, however, this causes families to fall apart. The mothers are then left behind to take care of their children alone.

Project description: Since 1999, Furuz supports families’ efforts in building small-scale businesses by providing micro loans. So far, 5282 loans worth approximately 3 million Euros were given to 2735 clients. 30% of the clients are women, many of them single mothers. On average, family incomes rise by 40% after taking up a loan.

 

Furuz is also making economic profit: from January to May 2008, the organization had an income return of 12.8%. These profits are invested back into the organization. As of 2010, Furuz plans to create savings deposits.

Together with CIM - Center for International Migration (an agency of the German Ministry for Economic Cooperation and Development) PAI assists the population of Kurgan-Teppa, in the  Central Asian State of Tadjikistan by strengthening the  micro-credit organisation FURUZ. Each partner covers 50% of the expenses. PAI worker Hans-Joachim Jäckle, who is fluent in Tajik, has been active as an advisor to Furuz since September 2008.

Through the support of Furuz, PAI is contributing greatly to the economic development and income maintenance in Tajikistan. Through this project, PAI has also had the opportunity to build on the partnerships with CIM and GTZ (Deutsche Gesellschaft für Technische Zusammenarbeit).

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