Eskhata Bank Secures $15M to Empower Women Entrepreneurs

OJSC Bank Eskhata (Tajik) has received a financing package from the European Bank for Reconstruction and Development (EBRD) up to USD 15 million to increase access to finance for women entrepreneurs and young business owners in Tajikistan. The fund will be used to support women entrepreneurs, increase youth entrepreneurship and enhance financial inclusion to facilitate more entrepreneurs to start, expand and scale their businesses.

The financing package comprises two targeted facilities that focus on increasing opportunities for underrepresented entrepreneurs. With the support of the EBRD Women in Business program, Eskhata bank is granted access to funding of up to $3 million for facilitating women entrepreneurs' access to finance and expanding women-led businesses. The remaining amounts of up to $12 million, through the Youth in Business program, will support micro, small, and medium-sized enterprises (MSMEs) established and/or managed by entrepreneurs under the age of 35.

Small-scale financing is for many women in Tajikistan one of the main obstacles to business creation and development. Women entrepreneurs, while contributing to the entrepreneurial ecosystem, frequently struggle to secure long-term funding which is needed for business expansion, innovation and employment. With this new funding package, we want to close this gap by offering a dedicated source of funding that can help women entrepreneurs grow stronger and more sustainable businesses. The initiative is also expected to strengthen women's participation in the formal economy by improving financial resilience and supporting long-term business sustainability.

Key Highlights:

• $3 million allocated to increase financing for women's businesses
• MSMEs are supported by $12 million to build and grow young entrepreneurs
• Partnership fosters inclusive entrepreneurship, employment and regional economic growth

The Youth in Business facility complements these activities by providing business opportunities to the youth who are under 35 years old and assisting young business leaders to access some financial support to kickstart a new business or grow their existing business. The two financing programs are projected to stimulate entrepreneurship in all regions of Tajikistan, and to enhance access to long-term financing, especially in remote areas.

During his speech, Chairman of the Management Board of the EBRD, Akmaljon Sayfiddinov stated that “the partnership will allow Eskhata Bank to extend its financial offering for young entrepreneurs and women towards sustainable entrepreneurship, job creation, and additional economic development in Tajikistan”.

In addition to providing access to capital, the initiative will also help to foster economic development by promoting businesses that create jobs, boost local economies, and promote inclusive economic growth. The partnership's investment in women entrepreneurs and young business owners aligns with a long-term strategy to foster a more inclusive and sustainable entrepreneurial ecosystem.

The agreement is another of the bank's major steps in its partnership with the EBRD, the bank said. The collaboration is in line with the bank's policy to encourage entrepreneurship through inclusive financial services and to foster the sustainable development of women entrepreneurs and youth entrepreneurs. With wider access to financial opportunities for women business owners to grow their enterprises, it is hoped that the initiative will help to accelerate the achievement of sustainable economic growth and women's empowerment in Tajikistan.