IFAD, Bank Arvand Partner to Turn Remittances into Rural Prosperity in Tajikistan

The programme is part of the REMIT PRIME Central Asia Programme, supported by IFAD, the European Union, and other development partners.

The International Fund for Agricultural Development (IFAD) and Bank Arvand have signed a €445,000 grant agreement to launch a major rural development initiative designed to convert remittance flows into long-term, climate-resilient economic opportunities for communities across rural Tajikistan. The programme is part of the REMIT PRIME Central Asia Programme, supported by IFAD, the European Union, and other development partners.

A New Push to Harness Remittances for Development

Remittances are central to Tajikistan’s rural economy. With nearly 50 per cent of rural households relying on money sent from relatives working abroad—mostly in Russia—these funds serve as a lifeline for daily living expenses, education, healthcare, and small-scale farming.

The new IFAD–EU initiative aims to shift remittances from consumption to investment, strengthening rural livelihoods through accessible financial services, practical skills, and targeted support for small businesses and climate-friendly agriculture.

Radoslaw Darski, European Union Ambassador to Tajikistan, highlighted the EU’s commitment to turning remittance flows into tools for stability and growth:“By offering better financial services, supporting local businesses, and teaching financial skills, we hope to help over 14,000 people, especially women, build a brighter future.”

Expanding Inclusive Financial Services

Under the initiative, Bank Arvand will expand rural outreach through mobile agents, digital banking channels, and tailored financial products for remittance recipients and returning migrants. These may include savings accounts, microloans, agricultural credit lines, and insurance products designed for households dependent on remittances.

Pedro De Vasconcelos, Manager of IFAD’s Financing Facility for Remittances, emphasized the transformative potential:“Remittances are a lifeline for rural Tajikistan. With the REMIT PRIME Project, Arvand Bank is transforming that lifeline into long-term economic empowerment.”

Supporting Climate-Resilient Economic Activities

To encourage productive investment, the programme will provide matching grants and loans for equipment such as drip-irrigation systems, greenhouses, improved seeds, dairy processing tools, and climate-smart technologies. These investments aim to help households diversify income, boost productivity, and reduce climate-related risks.

Shoira Sodiqova, Chairperson of Bank Arvand, noted:“Together, we aim to help rural communities strengthen their financial resilience and invest in a better future.”

Building Financial and Business Skills

A major component of the programme is financial literacy. Over 8,000 rural residents, more than half women, will receive training in budgeting, savings, entrepreneurship, digital finance, and small business management through a mix of online and in-person workshops. This focus on skills aims to ensure long-term sustainability and women’s economic empowerment.

Impact Over the Next Two Years

The programme aims to reach over 14,000 rural residents in its first two years, helping them:

• Access affordable and user-friendly financial services

• Invest remittances in viable income-generating activities

• Adopt climate-resilient agricultural practices

• Build long-term economic security for their families

By integrating remittances into rural development strategies, IFAD, the EU, and Bank Arvand seek to strengthen local resilience, reduce vulnerability, and create pathways for sustainable growth in some of Tajikistan’s most remittance-dependent communities.