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The agricultural sector in Tajikistan – the cotton sector in particular – is the largest employer and a critical part of the country’s economy. However, its development has been hindered by outdated agribusiness management skills, poor sector organization, and limited access to financial services.

Cotton farmers remain poor and heavily indebted to private loan companies that provide financial packages through ginneries at high interest rates. In order to increase its share of lending to the cotton industry, Tojiksodirotbonk (TSB) – Tajikistan’s third-largest bank – restructured its loan portfolio to more effectively target cotton farmers, providing them with financial products at more favourable rates, as well as technical assistance in addressing the major issues of inadequate collateral and unreliable harvest forecasts.

A top priority was ensuring that women workers benefited from all programme activities. The rate of repayment has increased considerably and small-scale cotton farmers have gained access to competitive loans, helping them to reduce their indebtedness and enabling them to use the capital for investment and growth.