TAJIKISTAN
Furuz Microcredit Deposit Organzation
Migrant Work and Absent Fathers
One in 9 Tajiks of working age have migrated to Russia. The vast majority of these are men. This has resulted in a missing family member in one-third of families in Tajik society. Recent estimates have remittances accounting for over 30 percent of the GDP, and over 80 percent of remittances going towards essential household needs. While migration has been a means of survival for many households, only a small amount of remittances goes towards savings, or building new businesses and thus job creation. Therefore, the long-term benefit for Tajikistan’s economy is limited.
More significant and lasting economic growth could be achieved by developing small and medium-sized businesses, creating many jobs. People have some funds but most need additional loans to start a business. Tajik business owners must work hard to overcome many typical obstacles.
Socially, one of the major impacts of migration is absence, leaving a vulnerable and marginalized group of “abandoned families” in Tajikistan. The strain placed on families has contributed to family breakdown on a societal scale.
LONG-TERM SOLUTIONS: SMALL BUSINESS DEVELOPMENT, FINANCIAL INCLUSION, & JOB CREATION
It was in this context that Furuz Microcredit Deposit Organization began as a micro-enterprise development program of Millennium in 1999. In 2006, they received a lending license from the National Bank of Tajikistan, and in 2022, they received an additional license allowing them to offer deposit services. Since then, they have provided over 65,000 loans to 25,000 clients, resulting in the creation of 20,000 jobs. In January 2024 alone, more than 10,000 jobs were created and sustained by their active loans. These jobs are moving many Tajiks out of poverty to form a new middle class