Karim, a middle-aged farmer in central Tajikistan, gazes over the untapped hills that he dreams of cultivating. “There’s no reservoir, no pipelines—irrigation is my biggest headache,” he says, exhausted from the struggle. When Nazira Zevarshoeva from the USAID-funded Market Driven Rural Development (MDRD) Activity, implemented by ACDI/VOCA, informs him of a cutting-edge irrigation solution coming to Tajikistan, a weight seems to lift off his shoulders. “Ah,” he seems pleasantly surprised. But even as the promise of modern irrigation begins to ease one burden, a lasting question remains—how can he find more investment to truly grow his farming business? Daler Ikromov from MDRD has options to offer for that as well.
More and more U.S. companies are coming into Tajikistan’s agricultural market. Lindsay Corporation, a leading American irrigation company, sets the stage to introduce modern solutions to the region; AV Ventures, a U.S. investment firm and affiliate of ACDI/VOCA, has started making inputs into the local banking system and businesses; and an American microfinance organization, FINCA, is committed to extending its services to farmers and rural-based customers with easier and innovative access to loans and other financial products.
These efforts mark a new era in Tajikistan’s agriculture, one fueled by innovations and investments. MDRD is at the forefront of this transformation, bridging Tajikistan’s agricultural potential and American expertise to empower farmers and create jobs for the rural population.
In a country where agriculture provides livelihoods for 40 percent of the workforce—most of them women—and accounts for over 20 percent of the nation’s GDP, these efforts couldn’t come at a more critical time.
Save water, irrigate smartly
Tajikistan’s agricultural future faces a major obstacle: water. The small Central Asian republic has only less than 800,000 hectares of irrigated land according to local officials, and though it sounds incredible for a home of rivers and glaciers, irrigation of agricultural lands is an issue, due to a number of reasons, old infrastructure the largest of them.
“Sometimes there is water, sometimes there is none,” says Jumaboy, an orchard owner. “I’ve been using old pumps for years, fixing them just to get by.”
That’s where Lindsay Corporation steps in. Renowned for its innovative water management solutions, the Nebraska-based company has chosen Tajikistan as its gateway into Central Asia. With MDRD acting as a catalyst, Lindsay signed a contract with Agralis GmbH and Agralis Tajikistan to introduce advanced pivot and hose reel irrigation systems. These systems are expected to revolutionize how Tajik farmers irrigate their land, vastly improving water efficiency and boosting crop yields.
Iskandar Muzaffarzoda, Director of Agralis Tajikistan, couldn’t be more enthusiastic: “With these modern irrigation technologies, farmers can achieve more with less water. It’s not just about increasing yields but conserving our precious resources and greening areas that struggle with water scarcity.”
According to Tajikistan’s National Commission of Irrigation and Drainage, less than 40 percent of irrigated land in Tajikistan receives water from pumping stations. The country suffers from improper agricultural practices and irrigation techniques, including inadequate technical maintenance of drainage networks, deteriorating pumping stations, and high salinity.
“Our irrigation equipment allows farmers to save about 40 percent of water used and increase yields by 20-50 percent versus traditional flood irrigation. In addition to manufacturing robust and reliable equipment, Lindsay is also a leader in new technologies. Our application, named FieldNet, offers remote irrigation management, smartphone alerts, and data collection to manage every aspect of irrigation. The app also gives recommendations to farmers on when, where, and how much to irrigate to avoid yield losses and save water. We see vast potential in the Central Asian agricultural market and believe that our equipment will boost farming in Tajikistan“, says Damien Cochelin, Lindsay Regional Manager for Eastern Europe and CIS countries.
To spread adoption, MDRD and Lindsay will jointly educate local farmers about mechanized irrigation. A demonstration plot, to be co-invested with local Tajik companies, will showcase the technology in action, providing both agronomical and economic data on how it can enhance yields while saving water and fertilizers.
Any cash?
Innovation requires investment, and the lack of financial resources remains a major hurdle for Tajik farmers. Agricultural loans make only less than 15 percent of the loans given by local financial institutions, which was valued at a little bit more than USD 1 billion for the first half of 2024, according to the National Bank of Tajikistan. High interest rates, limited collateral, and risk-averse financial institutions have long stifled growth in Tajikistan’s agricultural sector.
However, recent MDRD partnerships involving American financial institutions offer a promising solution.
Furuz, a microdeposit organization in Bokhtar, Tajikistan, celebrated the signing of an important agreement valued at USD 500,000 to expand lending opportunities in rural areas, particularly in the agriculturally rich Khatlon province in the south. Under this agreement, ACDI/VOCA-affiliate AV Ventures will provide foreign currency loans to Furuz, while MDRD will help to cover the costs of hedging foreign exchange risks, making lending more accessible to farmers—especially women and young entrepreneurs.
“This partnership allows us to extend financial services to the parts of Tajikistan that need it most,” says Hans Joachim Jaeckle, Furuz CEO. “We’re proud to be part of an initiative that not only boosts the local economy but also empowers underrepresented groups like women and young farmers.”
MDRD has also connected AV Ventures to FINCA Tajikistan, exploring further opportunities for Tajik farmers to access the capital they need. Accordingly, FINCA is expected to use AV Venture investment for agricultural loans in rural areas.
In addition, FINCA Tajikistan, which is a branch of the American organization, has partnered with MDRD to streamline and promote mobile loans in rural areas, increasing access to competitive financing for the agricultural sector. FINCA is supported to develop an e-wallet system, adapt the existing web-based processing system for mobile use, and promote a new mobile application in rural regions. This initiative aims to save customers time and improve access to loans for farmers.
FINCA Tajikistan Chief Operating Officer, Amid Tashrifbekov, said the partnership will help FINCA develop and promote mobile loans in cooperation with a local mobile company, allowing the mobile company’s subscribers to receive micro loans of up to $1,000 USD in real time.
“Customers can then purchase goods by using their phone to scan a QR code at the point of purchase or visit a FINCA outlet or agent to get cash,” Tashrifbekov explained. “This innovative initiative will help farmers get mobile loans quickly and easily to buy necessities like fuel, seeds and fertilizers. Customers can also use funds to purchase household items or consumer goods.”
“With easier and faster loans, I could finally expand my orchard. I plan to invest in a modern irrigation system and plant new varieties of fruit. This would boost my harvest and support my family and community,” says Akmal, an orchard owner from Kushoniyon.
A future of prosperity and innovation
These initiatives are more than just economic projects; they represent a vision of sustainable development, international cooperation, and hope.
“These partnerships are win-win for everyone,” says Mohammad Shahroz Jalil, MDRD Chief of Party. “The US companies gain access to new markets, while Tajik farmers receive the technology and investment that will transform their livelihoods.”
Connecting American innovation with Tajikistan’s agricultural roots paves the way for a more resilient future for Tajik farmers—one where the land thrives, and so do the people who depend on it.
Learn more about the Market Driven Rural Development Activity.
Learn more about our work in Tajikistan.
