Furuz is a microfinance institution that works in rural areas of western Tajikistan. It enables more than 3,500 micro-entrepreneurs involved in agriculture and livestock farming to finance the growth of their business to ensure a better income.
In Tajikistan, more than half the Gross Domestic Product comes from remittances from Tajiks who have emigrated abroad, where they often have insecure jobs. Consequently, it’s vital to boost rural areas to enable local people to create new opportunities for themselves.
However, a significant proportion of the rural population has little access to financial services and microfinance institutions like Furuz want to change this. They give micro-entrepreneurs in the agricultural sector the opportunity to create or expand their activities.
Furuz supports more than 3,500 micro-entrepreneurs in western Tajikistan. Almost a third of Furuz’s portfolio is dedicated to financing agriculture and livestock farming, making it powerful vehicle of financial inclusion.
Furuz’s financial services and its ability to offer products suited to the needs of smallholder farmers have created a genuinely virtuous circle that’s improving the living conditions of the farmers and their families.
Alterfin has provided financing to support the development of Furuz’s activity since 2018:
“When we received the loan from Alterfin, Tajikistan was experiencing a major economic crisis. Some lenders left. We couldn’t find a viable alternative for our financing. Alterfin arrived at just the right time, enabling us to keep going with peace of mind. What’s more, once we received our loan from Alterfin, other investors followed suit.”
Furuz’s partnership with Alterfin has given it more visibility and credibility in the eyes of other international lenders. Moreover, these lenders have matched Alterfin’s conditions, which are more favorable than those offered locally and by international organizations. Thanks to these more favorable loans, Furuz has been able to support more Tajik farmers with lower interest rates.
To understand Furuz’s impact on its beneficiaries in the agricultural industry and Alterfin’s role as a social investor, we interviewed 300 producers who received financing from Furuz last season. Want to know all about it? Read the case study in our annual report: