Promoting inclusive economic growth in Tajikistan

Project description

Title: Towards Rural Inclusive Growth and Economic Resilience (TRIGGER II)
Commissioned by: Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Tajikistan
Lead executing agency: Ministry of Economic Development and Trade of the Republic of Tajikistan
Overall term: 2019 to 2021

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Context

Tajikistan’s transition to a more market-oriented economy has been very limited compared with other former Soviet states. Agriculture remains the largest sector of the economy. Most of the people employed in rural areas work in micro, small and medium-sized enterprises (MSMEs) and as smallholder producers. Since their access to markets is not well developed, their opportunities for value creation – whether by boosting productivity, processing raw materials or developing new markets – are limited. A lack of infrastructure and a poor investment climate make the situation even more difficult. The country’s development is hindered by a lack of funding mechanisms, skilled workers and a clear plan for growing the private sector.

Objective

Micro, small and medium-sized enterprises and small producers in the agricultural sector have improved their competitiveness and value creation, and thus their contribution to environmentally and socially sustainable economic development.

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Approach

This project – ‘Priority area sustainable development – Promoting inclusive economic growth (TRIGGER II)’ – builds on the results of predecessor programmes. It focuses on agriculture, including processing and marketing agricultural products. The project aims to improve the connections between the different market actors (producers and processors, for example) and in this way boost the value added to products and services in Tajikistan. 

The project takes a phased approach. 

  • One of the aims is to support the Tajik Government in developing the private sector and promoting an environment that is business friendly. It aims to do this primarily by improving communication between policy-makers and business. An example of this is the annual business meeting in the Tajik capital Dushanbe, which has become an important platform for political discussions and proposals for reform on significant economic issues.
  • In addition to this, the project focuses on developing integrated value chains, which help to improve income opportunities for small-scale producers and producers of agricultural products. Training and advice on sustainable, climate-resilient farming practices, the processing of products and marketing options help farmers to achieve demonstrably higher yields. Purchase agreements with agricultural enterprises and effective networking of producers, service providers, processers and sales organisations also guarantee sales.
  • The project promotes export and marketing opportunities. New markets and contacts with export and agricultural associations, combined with certification of compliance with organic standards, increase the competitiveness of agricultural products both nationally and internationally.
  • The project promotes SMSE start-ups by delivering training and workshops and connects SMSEs with investors and businesses. In this way, they can further develop their ideas and increase their economic performance. People seeking to start their own business are encouraged to do so.
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