Agriculture Commercialization Project

ABOUT THE PROJECT

The Agricultural Commercialization Project (ACP or the Project) is an International Development Association (IDA) grant. The project is designed to support Tajikistan's efforts over the past few years to develop the country and improve the living standards of the population.

The Project Development Goal is to increase the level of commercialization of farms and increase agro-industrial production and support the development of micro, small and medium-sized enterprises in rural areas by providing better access to finance and strengthening the capacity of Project beneficiaries.

The project aims to increase the commercialization of agriculture by improving the ability of a new generation of small private farms to participate in agribusiness commercialization activities and gain market access. This will be achieved through a coherent and complementary approach, addressing all major aspects of this activity
through the following:

• capacity building of farmers, traders, agribusinesses and agricultural processors (enterprises processing industries) to participate in agricultural markets through access to knowledge and technical assistance;
• improving access to investment financing;
• strengthening critical elements of the institutional structure and academic knowledge base for the sector needed to support business activities.

Additional financing is aimed at expanding opportunities for affordable loan products (combined loan and grant), as well as consulting services for the purpose of investment support for rural areas, the development of micro, small and medium-sized enterprises, production growth and the creation of new jobs. The Project Implementation Unit “Access to Green and Rural Development Finance” under the Ministry of Finance of the Republic of Tajikistan implements the funds of the Credit Line and the Matching Grants Program for Project beneficiaries through the Financial Institutions cooperating within the framework of this Project. The Project also assists within the framework of providing equal matching grants and loans for the disbursement of funds on creation of new enterprises and jobs (selfemployment) for target groups: start-ups for youth (under 30), women and people with disabilities.

The Project consists of the following components:

I. Improving technical knowledge and skills to support commercialization;
II. Access to finance for agribusinesses and small commercial farms;
III. Institutional capacity building and project management;
IV. Entrepreneurship training and business development services for micro, small and medium enterprises.

The list of the direct beneficiaries of the Project includes:

• Commercially oriented associations of producers, farmers, agro-industries and dealers involved in establishing value chains and productive relationships supported by the Project;
• Participating financial institutions;
• Public and scientific/academic institutions;
• Individual entrepreneurs and micro, small and medium enterprises, including dekhkan farms, which, among other things, operate in a wide range of sectors of the economy, including agricultural production, food processing, smallscale production, services, trade and transport.