USAID Agribusiness Competitiveness Activity in Tajikistan (ACAT) FY23, 1st QUARTERLY REPORT

The program is implemented by Winrock International and is funded by the United States Agency for International Development (USAID). The program's primary objective is to support the diversification of the agricultural sector to include higher-value commodities and value-added products. ACAT's investments in upgraded equipment and technical assistance have continued to foster growth for the program's partners. The program's long-term investments in partners' capacity and infrastructure have resulted in $494,116 in new partner sales, a 110.8% increase from the first quarter of FY22 sales of $234,346. The program's partner agribusinesses have also made substantial operational improvements in product volume and quality, producing 466.43 metric tons (MT) of products, an increase of 15% from the previous quarter. The program has also strengthened the financial health of its business partners, with 42 partners having strengthened their financial management systems to comply with financial institutions' minimum lender requirements. These tools are allowing enterprises to assess their own financial health and performance and make informed decisions about future capital investment. The average net profit margin of these firms is approximately 28%. ACAT has also demonstrated improvement in the financial health of three microfinance institutions (MFIs) through technical assistance. The MFIs have used a financial health assessment tool to assess their strengths and weaknesses and move further along the development continuum. The program has also disbursed 123 new loans valued at $314,925 this quarter, leveraging $47,811 in private sector investment and generating $355,444 in additional sales for micro-borrowers after loan repayment. ACAT's coaching efforts in the horticulture value chain have impacted how business managers think and lead their firms. A follow-up assessment of quality assurance revealed that losses from hygiene measures in selected canning firms during the production cycle reduced from 50% to 10% thanks to best practices during jar washing, fruit treatment, and personal hygiene. This has also helped select firms access the Dushanbe market. The program has also successfully coached six firms to improve product quality, resulting in the sale of 26.9 metric tons of dried goods primarily to the Sogd region of Tajikistan. ACAT's dairy firms have continued progress in implementing their roadmaps, with clear goals and measures to solve issues. In FY23 Q1, dairy firms sold products with a total amount of $250,105, a 26% increase from FY22 Q1. ACAT has also made efforts to promote women's entrepreneurship, culminating in an event held in October 2022, to launch the photobook "Groundbreakers - The Fearless 15: Empowering Women Entrepreneurship in Khatlon Region." The event highlighted the crucial role of women entrepreneurs in enhancing agribusiness and driving Tajikistan's economic growth. The program has facilitated $424,236 in new United States Government (USG) and private sector investment funds to support the project's target enterprises in the dairy and horticulture sectors. This total includes $294,104 in USG commitments and $80,610 in private sector leverage and $47,811 in payments from loan borrowers' contribution. The program's efforts have contributed to a competitive and inclusive agribusiness sector in Tajikistan, with a focus on diversification, value addition, and women's empowerment. The program's investments in partners' capacity and infrastructure have resulted in significant growth and operational improvements for the program's partners.