MANILA, PHILIPPINES (24 July 2024) — The Asian Development Bank (ADB) has approved a $50 million policy-based grant to help the Government of Tajikistan foster a climate-responsive business environment and support small and medium-sized enterprises (SMEs) in the country.

The Enabling Climate-Responsive Business Environment Improvement Program aims to transform Tajikistan's business environment, including through digitalization, reforms to increase exports, improving infrastructure governance, fiscal transparency, and support for climate-friendly SMEs.

"This program underscores ADB's commitment to supporting Tajikistan in its transition to a green economy,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “By promoting climate-responsive investments and improving the overall business environment, we aim to stimulate economic growth, create green jobs, and enhance the country's resilience to climate change."

The program supports reforms that provide climate-friendly SMEs with subsidized financing, prioritizing funds for women entrepreneurs. It advances digitalization and e-commerce through the operationalization of the Agency for Innovation and Digitalization and approval of the E-Commerce program. 

The program also supports enhanced public investment management through assessments to recommend improvements and prioritize climate-focused projects. Fiscal transparency is improved by building the Ministry of Finance’s capacity to publish government finance statistics. The program promotes international trade and investment by streamlining trade documentation processes and updating regulatory frameworks for issuing local and green bonds. 

The program supports Tajikistan's National Development Strategy 2030 and the Green Economy Development Strategy 2023–2037. It is also aligned with ADB’s country partnership strategy for Tajikistan, 2021–2025, which focuses on creating an inclusive and sustainable environment for economic growth.

A $500,000 technical assistance grant was also approved to further support the Government of Tajikistan in implementing additional reforms to improve the climate-responsive business environment in the country. This technical  assistance will focus on policy, legal, and regulatory reforms, as well as capacity development for various government agencies.

The program has been implemented in close collaboration with development partners, ensuring effective coordination and leveraging combined expertise to achieve its climate-responsive and economic development goals.

Tajikistan joined ADB in 1998. For 26 years, ADB has supported a wide range of sectors from strategic road and energy infrastructure to health, education, agriculture, urban development, public sector management and finance for a total of over $2.6 billion in assistance—including over $2 billion in grants.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.