Oxus Microfinance Network

History

The OXUS story began in 1997 in Tajikistan, just as the country emerged from a fierce civil war. Back then ACTED started to disburse its first micro-loans in the Vakhsh Valley. The microfinance programme aimed at supporting bakers who were in desperate need of flour which was repaid at a later stage. Following the success of this initiative, ACTED gradually launched several microfinance programs across the country until February 2006 when OXUS was registered with the Tajik National Bank as a Micro Lending Organization. Since then, OXUS Tajikistan has developed the portfolio it inherited from ACTED.

 

Operating in Tadjikistan

Over the last decade Tajikistan has achieved remarkable socio-economic progress. The national poverty headcount at national level has retreated from 92% in 1999 to 47% in 2009. At the same time, economic growth is picking up again following a context of global economic crisis, with GDP growth standing at 6.5% in 2010 against 3.4% one year before.

Yet despite this, still 21.5% of the population lives on less than US$1.25 per day and the overall infrastructure level is very poor; electricity, telephone and water shortages are commonplace, and most of the population is still extremely vulnerable to natural disasters. The country’s HDI is 0.580, placing it significantly below the regional average of 0.717 and the poorest of the former Soviet republics. In addition, more than 74% of the Tajik population lives in rural areas, with agriculture representing 24.5% of the GDP.

In the meantime, the country suffers from weak financial inclusion as banks and local financial institutions are not always able to provide much-needed loans to local farmers and entrepreneurs. 2010 financial inclusion data published by the Consultative Group to Assist the Poor (CGAP) estimated the number of commercial bank branches in rural areas at barely 2.62 per 100,000 adults. This is very limited indeed; in France for instance there are 32.02 commercial bank branches per 100,000 adults. This situation encouraged microfinance institutions (MFIs) to support these segments of the population and contributed to the emergence of a burgeoning private sector. A legal framework for microfinance was created in May 2004 when the Law “On Microfinance Organizations of the Republic of Tajikistan” was passed. In addition, the Association of Microfinance Organizations of Tajikistan (AMFOT), which was established in 2001, has 78 MFIs and serves as a coordination and information exchange platform.

 

Key indicators

 

Geographical reach

At of December 2011 OXUS Tajikistan is ranked fifth largest microfinance provider in portfolio terms out of all AMFOT members. The affiliate operates 5 branches and 24 sub-branches and has since inception disbursed over 49,290 micro loans and nearly US $ 56.2 million.

 

 

Products and clients

In order to best meet the specific needs of its clients OXUS Tajikistan currently offers five different types of products, with individual loans accounting for 80% of the affiliate’s outstanding loan balance against 20% for group loan products.

• Individual business loan product ;
• Group loan product ;
• Individual agro livestock loan product ;
• Individual agro horticultural product ;
• External consumer loan product ;
• Express loan ;
• Internal consumer loan product

Since inception OXUS Tajikistan has focused on operations in rural areas where 93% of clients live and work. To date just over 50% of OXUS clients in Tajikistan use their loan to finance trade and services activities, while nearly 40% it to for livestock and horticulture. In the meantime, women represent 34% of OXUS Tajikistan clients.

 

Management team

Vatansho Vatanshoev – Chief Executive Officer

Vatansho graduated in Modern Languages from the Tajik State University in Dushanbe, and is currently enrolled in an Economics Masters Degree at the Russian Humanities Academy. After working for the Office of the Prime Minister, he joined ACTED in 1997, initially to monitor and supervise a program aimed at supporting small and medium-sized entrepreneurs. He gradually moved his way up to become Area Programs Coordinator for the Khatlon Region in 2003. In 2006, he became Chief Executive Officer of the newly created OXUS Micro-Lending Organization in Tajikistan.

Ilkhom Khodjaev – Operations Officer

Ilkhom obtained a degree from the Economics and Management Faculty of the Technological University of Tajikistan in Khujand. He began to work for OXUS Tajikistan in 2006 as a Loan Officer in the Sughd Branch, and was quickly promoted to be Loan Administrator, and Loan Supervisor. He managed Product Development and Marketing at Headquarters before becoming Chief Operations Officer.

Azam Abbosov – Financial Officer

Azam studied History as well as Finance and Market Economy at Khujand State University in the Sughd Region. He first worked as a Finance Officer for ACTED’s Microfinance Department, before joining OXUS Tajikistan at its creation in 2006. Before managing the Finance Department as Chief Finance Officer, he was Finance Officer of the Sughd Branch.

 

Contact

OXUS Tajikistan

Tolstoi Street 73, Dushanbe, Tajikistan

Tel: (+992) 37 224 32 28