The reduction in American financial aid is already being felt in the life of Tajikistan, and this could not help but affect the agricultural sector.
Without projects, there are fewer opportunities
The closure or temporary suspension of USAID programs means that many projects aimed at supporting agriculture, small and medium businesses, and social programs may be curtailed.
In particular, in the Khatlon region, where agriculture plays a decisive role, the provision of financial and technical assistance has become the basis for the development of many agricultural enterprises.
The ACAT project, operating in twelve districts of the Khatlon region, was one of the most successful and significant for local farmers.
The program introduced modern agricultural technologies, helped with training, and provided financing for agricultural enterprises, which allowed not only to increase crop yields, but also to take rural enterprises to a new level.
“Over the five years of the project’s implementation, Khatlon region has made a noticeable step forward. We see how small and medium businesses are strengthening their position, and women and youth are getting more opportunities for development,” said Liliya Tverdun, head of the ACAT project, during one of the conferences dedicated to the results of the project’s activities in Dushanbe.
From melons to cheeses: how Uguloy Abdullaeva expanded her business
One of the bright examples of success is the story of Uguloy Abdullaeva, the founder of the cheese factory “Mukhammadzhon-A”. Having started with growing melons and cotton, she soon realized that the dairy business was her chance.
After receiving the equipment in 2021, its products began to be sold not only in Balkhi and Bokhtar, but also in Dushanbe.
“The project helped me not only improve the equipment, but also expand the market. Now my cheeses are bought in large supermarkets, and I feel that I can develop further,” the entrepreneur shares.
However, the closure of USAID programs threatens the further development of such projects.
Without external support, small businesses such as cheese dairies and farms may struggle.
Lack of funding and advisory assistance will lead to stagnation in agriculture, which, in turn, will make it difficult for farmers to access modern technologies and new markets.
Overcoming financial barriers
Many farmers in Tajikistan face one of the biggest obstacles to growth: financial barriers.
High interest rates and difficult credit conditions make it difficult for businesses to develop, and often entrepreneurs simply cannot afford to take out a loan. But it was in these conditions that an idea was born that could change the rules of the game for small and medium-sized businesses in the region.
For farmers and entrepreneurs engaged in agriculture, banks in Tajikistan mainly offer loans with a rate of 21 to 36% per annum. In Kazakhstan and Turkmenistan, state programs with rates of 1-6% are in effect. In Kyrgyzstan, loans are given at 18-23% in soms, 9-15% in foreign currency. In Uzbekistan, the rates are higher: from 26% to 40% in sum and from 10% in dollars.
“When I started, I didn’t even think I would be able to get help. All the loans either had huge interest rates or conditions that left no chance of success,” says Shahnoza Davlatova, a farmer from Khatlon. “But with the USAID ACAT program, everything changed. Thanks to these loans, I was able to expand my greenhouse and increase my profits.
Now I see how business is coming to life. Not only for me, but also for many of my colleagues. The program gave us a chance and confidence that with the right support, a lot can be changed,” Shakhnoza said in an interview with Asia Plus.
The program, implemented with the support of USAID ACAT, opened new horizons for entrepreneurs in the region.
Partnerships with five microfinance institutions have enabled the creation of specialized agricultural credit products with more accessible terms.
As a result, more than 16 million somoni, or $1.5 million, were directed to support 755 agricultural enterprises, and many entrepreneurs were able to overcome financial barriers.
One of the shining examples of success is Adolat Berdieva, who, after attending a training course in Isfara, founded a business processing and drying fruits and vegetables.
Today, her business provides jobs for 20 permanent employees, and another hundred people during the season.
“Loans as a key to success”
For some entrepreneurs, participation in the project became a real turning point in their careers.
Khalima Abdulloeva started her business journey with one cow, bought with credit money.
“I had to take out a loan for the cow, saving up 20% of the down payment. But it was a good decision that I did not regret later. That’s where it all started,” recalls Halima.
At first she sold milk, then expanded her range, began processing and gradually expanded her business.
“To start a business, it is important to believe in yourself. I got funding, expanded the business and paid off the loan. I had no fear of not getting the money back because I had calculated everything in advance,” she shares.
With the proceeds from her business, Halima was able to perform the Hajj and celebrate her son’s wedding. But that’s not all – she is also actively involved in charity work, having built a drainage system that supplies water not only to her farm, but also to her neighbors.
Another success story is the path of Makhfuzullo Rakhimov, who grew lemons in a greenhouse, but without a roof.
In 2022, he received a loan from Arvand Bank, which allowed him to complete the construction of the greenhouse and purchase the necessary equipment.
Today he produces 17 tons of lemons per year, 5 of which he exports to Kazakhstan.
“It is important not just to take a loan, but to have a clear plan in advance. Money should not be spent on entertainment, it should work,” says Makhfuzullo.
Another example is Shamsiddin Eshbekov, who is developing a greenhouse farm and is engaged in drying fruits. His first loan was 50 thousand somoni, the second – already 80 thousand somoni.
His next step is to build a cold storage facility to store his products, which will increase sales volumes.
All these farmers were helped to get back on their feet or develop their businesses by USAID programs. After the suspension of assistance programs from this American Agency, many farmers and entrepreneurs may face difficulties if there is no constant support for further development of agribusiness and attraction of investments…