The International  Fund for Agricultural Development (IFAD)  and  Arvand Bank  signed a grant agreement of nearly €445,000 to invest in a new initiative. The initiative aims to empower residents of rural areas of Tajikistan to transform remittances received from family members working abroad into sustainable economic opportunities.

The REMIT PRIME programme  in Central Asia  brings together IFAD, the European Union and other lenders to expand access to remittances and improve the well-being of the communities that depend on them.

“We, as the European Union, are pleased to support this project, which transforms remittances into a powerful tool for growth and stability in rural areas of Tajikistan. By offering better financial services, supporting local businesses, and teaching financial skills, we hope to help more than 14,000 people, especially women, build a brighter future. Together with our partners, we strive to promote sustainable development and prosperity in rural communities,” said Radosław Darski, Ambassador of the European Union to Tajikistan.

According to the World Bank’s Global Findex Database 2025, nearly half (44.8%) of Tajikistan’s adult population receives remittances from relatives working abroad. Adults aged 25 and older (50.2%) received remittances more often than young people aged 15–24 (30.4%), while rural residents (50.6%) were significantly more dependent on cross-border remittances than urban residents (30.8%).

In rural areas of Tajikistan, every second resident, especially the elderly and women, depends on remittances from abroad to meet basic household needs. These flows provide livelihoods, finance education, and support small businesses.

“Remittances are a vital source of income for rural areas of Tajikistan. Through the Tajik REMIT PRIME project, Arvand Bank is transforming this source into long-term economic development for thousands of families,” said Pedro de Vasconcelos, Manager of the Remittance Financing Program at IFAD.

Over the next two years, the program will reach more than 14,000 rural residents, the majority of whom are women, by facilitating their access to financial services, creating stable income sources, and strengthening their ability to invest in climate-resilient livelihoods.

This will be done by:

– expanding access to financial services: strengthening service delivery channels in rural areas and agent networks to provide individual financial services to remittance recipients and returning citizens).

– support for income-generating activities: provision of co-financed grants and loans for the purchase of agricultural equipment and technologies that are resilient to climate change.

– Improving financial literacy: training 8,000 rural residents, more than 50 percent of whom are women, in the basics of financial and business literacy through online and in-person classes.

“We are proud to begin our partnership with IFAD and the European Union to transform remittances into a source of development, job creation, and business opportunities. Together, we strive to help rural communities strengthen their financial resilience and invest in a better future,” said Shoira Sodikova, Chairperson of the Board of Arvand Bank.

The programme is part of IFAD’s global  remittance financing  programme and builds on IFAD’s engagement in Tajikistan to promote inclusive rural development and strengthen the role of remittances as a driver of economic opportunity, women’s empowerment and climate resilience.

IFAD is an international financial institution and a specialized agency of the United Nations. Based in Rome, the center of the UN’s food and agriculture activities, IFAD invests in rural populations, empowering them to reduce poverty, improve food security, improve nutrition, and build resilience.

Since 1978, IFAD has provided more than $25 billion in grants and concessional loans to finance projects in developing countries.

The European Union is a key global partner in promoting inclusive development and sustainable finance, particularly in areas such as migration, economic empowerment and digital transformation.

Arvand Bank is one of Tajikistan’s leading financial institutions, focused on promoting financial inclusion and developing sustainable finance. The bank’s mission is to provide accessible, innovative, and responsible financial services that help people and small businesses improve their living standards.

Guided by the vision of a financially inclusive society, Arvand Bank focuses on supporting rural families, entrepreneurs, youth, and women through tailored products and partnerships. With a strong commitment to the principles of trust, transparency, and social impact, Arvand Bank continues to contribute to the country’s economic growth and financial sustainability.

https://www.asiaplustj.info/ru/news/tajikistan/economic/20251218/mfsr-i-banka-arvand-podpisali-grantovoe-soglashenie-na-445-000-evro-na-investirovanie-selskih-raionov-tadzhikistana

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