The Asian Development Bank (ADB) has approved a $50 million policy-based grant to help the Government of Tajikistan create a climate-resilient business environment and support small and medium enterprises (SMEs) in the country.

The Climate Resilient Business Environment Programme aims to transform the business environment in Tajikistan, including through digitalization, export-increasing reforms, improved infrastructure management, financial transparency and support for climate resilient SMEs.

“This program underscores ADB’s commitment to supporting Tajikistan in its transition to a green economy,” said ADB Director General for Central and West Asia Evgeny Zhukov. “By promoting climate-sensitive investments and improving the overall business environment, we aim to spur economic growth, create green jobs, and enhance the country’s resilience to climate change.”

The programme supports reforms that provide environmentally sustainable SMEs with subsidised financing, with a focus on financing women entrepreneurs. The programme supports digitalisation and e-commerce through the establishment of an Innovation and Digitalisation Agency and the approval of an e-commerce programme.

The programme also supports improved public investment management through assessments to prioritise climate-sensitive projects.

Fiscal transparency is enhanced by building the capacity of the Ministry of Finance to publish public finance statistics.

The programme also promotes international trade and investment by streamlining trade documentation processes and updating the regulatory framework for the issuance of local and green bonds.

The program supports Tajikistan’s National Development Strategy 2030 and the Green Economy Development Strategy for 2023–37. It is also aligned with ADB’s Country Partnership Strategy with Tajikistan for 2021–25, which focuses on creating an inclusive and sustainable environment for economic growth.

 

Another $500,000 for political and legal reforms

A $500,000 technical assistance grant was also approved to support the Government of Tajikistan in implementing additional reforms to improve the country’s climate-sensitive business environment.

This support will focus on policy, legal and regulatory reforms, as well as strengthening the capacity of various government institutions.

The programme is implemented in close cooperation with development partners, ensuring coordination and use of joint expertise to achieve climate and economic development goals.

Tajikistan joined ADB in 1998. For 26 years, ADB has supported a wide range of sectors, from strategic road and energy infrastructure to health, education, agriculture, urban development, public sector management, and finance, totaling over $2.6 billion, including grants of over $2 billion.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.

ADB was established in 1966 and includes 68 countries, 49 of which are in the Asia-Pacific region.