Across Tajikistan, many micro, small, and medium enterprises (MSMEs) encounter difficulties in accessing suitable and affordable financial services. Traditional banks often do not cater to these entrepreneurs, especially those in rural areas and low-growth sectors. The COVID-19 pandemic exacerbated these issues, reducing liquidity for smaller microfinance institutions (MFIs) and making it more challenging for MSMEs to obtain necessary capital.
Founded in 2006, Furuz aims to eliminate financial barriers by offering small business, consumer, and agricultural loans through its seven regional branches in Tajikistan. With an average loan size of $800, Furuz supports MSMEs that are often unbanked. The organization prioritizes client wellbeing by ensuring fair treatment, transparency, responsible pricing, and preventing over-indebtedness.
The Central Asia Impact Fund (CAIF), a $5 million impact investment vehicle managed by AV Ventures, provided Furuz with a $300,000 loan. This capital has enabled Furuz to continue serving low-income and socially vulnerable groups, ensuring access to affordable, high-quality financial services during challenging times. Despite the pressures of the COVID-19 pandemic, Furuz maintained profitable operations and reasonable repayment rates, while continuing to support Tajikistan’s entrepreneurs in recovering financially. Currently, Furuz is pursuing a micro-deposit organization license to diversify its offerings, demonstrating the role of inclusive finance in facilitating change and opportunity.
