Zsuzsanna Hargitai: Small Business Is the Key to Job Creation
Zsuzsanna Hargitai, Managing Director of the Small Business Finance and Development Department at the European Bank for Reconstruction and Development (EBRD), paid a two-day working visit to Dushanbe, where she met with government officials and representatives of small and medium-sized businesses. Following the visit, she gave an exclusive interview to Asia-Plus.
She notes that small and medium-sized enterprises (SMEs) are not an abstract concept — they are real businesses and real jobs. In Tajikistan, the private sector accounts for a significant share of employment in the economy, while the contribution of SMEs to GDP, according to various estimates, is around one-third of the economy.
This sector provides income for thousands of families, supports regional development and forms the backbone of the domestic market. To understand the potential, it is useful to look at the experience of neighboring countries. For example, in Kazakhstan SMEs employ around 4.4 million people and account for approximately 40 percent of GDP. This clearly demonstrates the role small and medium-sized businesses can play when favorable conditions are created.
Tajikistan also has the potential to strengthen the role of SMEs. With further expansion of access to financing, development of entrepreneurial skills, and continued improvement of the business environment, the contribution of SMEs to economic growth and employment could increase significantly.
«We See Positive Dynamics»
Q. How do you assess the current business climate for SMEs in Tajikistan? What changes in recent years do you consider the most significant?
A. Tajikistan’s private sector is at an important stage of development. Despite economic progress and growing potential, the business environment remains challenging. Access to financing, regulatory barriers, and limited market access continue to restrain business growth.
At the same time, we see positive dynamics. Entrepreneurs are increasingly introducing principles of corporate governance, improving transparency and raising business standards. This is a key step, because sustainable growth begins with professionally managed companies.
SMEs play an important role in diversifying the economy, creating jobs and supporting regional development.
It is also important to highlight the role of the Government of the Republic of Tajikistan. The State Program for the Support and Development of the Private Sector for 2023–2027 demonstrates a commitment to creating a favorable business environment through regulatory simplification, stronger dialogue with entrepreneurs, and institutional development. Consistent implementation of these measures sends a positive signal to investors.
At the EBRD, we view the combination of private sector initiatives and government support as the foundation for further progress. Our goal is to work together with entrepreneurs, financial institutions and authorities to develop a competitive and resilient SME ecosystem that contributes to economic growth and quality job creation.
Q. What key challenges still hinder SME development, and what is critical for overcoming them?
A. The main challenges are well known: access to long-term financing, currency risks, productivity gaps and regulatory barriers. Without sufficient capital, companies cannot invest in modern technologies, attract qualified personnel, implement innovation or build sustainable business models.
Companies led by women and young entrepreneurs often face additional difficulties and stricter lending requirements. In some cases, promising companies lack either the financial resources or the management competencies needed to scale up.
Financing is only one side of the issue. The other is knowledge and skills development, which also requires continuous investment.
Our approach is comprehensive. We work through local partner banks to expand access to financing, including longer-term instruments and risk-sharing mechanisms. At the same time, we provide advisory and training support aimed at improving financial and corporate governance, operational efficiency and market positioning of companies.
«Clear and Stable Rules Are Needed»
Q. What are the EBRD’s priorities in supporting SMEs in Tajikistan in the coming years? How do they fit into the Bank’s overall strategy in Central Asia?
A. Our priorities in Tajikistan align with the Bank’s overall strategy in Central Asia and focus on four key areas.
First, we help small and medium-sized businesses gain greater access to financing by strengthening local banks and financial institutions.
Second, we support increased competitiveness by improving productivity and corporate management practices.
Third, we promote entrepreneurship among women and young people so that economic growth becomes more inclusive and equitable.
Fourth, we help businesses adopt environmentally friendly solutions and modern digital technologies.
For us, green solutions and digitalization are not separate topics but tools that make businesses stronger and more resilient. In Tajikistan, support for SMEs remains one of the main priorities of our work. In the coming years we will continue helping companies strengthen their positions, access financing and better respond to external challenges.
Across the region, our goal is to promote sustainable, diversified economies with a strong private sector and clear market rules.
Q. Strategically speaking, what changes would you like to see in the SME sector over the next 3–5 years with active EBRD support?
A. We would like to see more Tajik companies grow from small businesses into medium-sized enterprises.
When companies grow, they create new jobs, invest more in development and make a more significant contribution to the country’s economy.
It is also important for businesses to operate transparently — maintaining clear financial reporting, following modern management standards and taking environmental and social requirements into account. This helps companies gain the trust of partners and investors and enter new markets.
However, such growth is only possible in a favorable business environment. Clear and stable rules of the game, fair competition and equal access to financing for all enterprises are essential. If these conditions are ensured, Tajik companies will be able to compete not only domestically but also increasingly in international markets.
Q. Which financial instruments provided through local banks have proven most effective in expanding SMEs’ access to finance?
A. In Tajikistan we cooperate with five local banks: Bank Arvand, Iman International Bank, Investment and Credit Bank of Tajikistan, Humo Bank and Eskhata Bank. As of the end of December 2025, the combined share of assets held by our partner institutions accounted for more than 30 percent of the total assets of the banking sector.
We provide partner financial institutions with medium-term credit lines for green economy financing, support for women entrepreneurs and youth in business, trade finance instruments, risk-sharing mechanisms, direct equity investments and extensive technical assistance.
To date, the EBRD has provided partner credit institutions with financing totaling 273 € million, of which 51 percent (or 140 € million) was allocated to trade finance in the country.
During 33 years of operations in Tajikistan, the Bank has actively supported the development of the financial sector for 26 years, including microfinance. We intend to continue expanding cooperation with existing and new financial institutions, combining financial instruments with technical assistance for the sustainable development of the SME sector.
Consulting, Training and Mentorship
Q. The EBRD is known not only for financing but also for developing companies through advisory and training programs — non-financial services. Why does the Bank invest in these? What results have you already seen in Tajikistan?
A. We understand that financing alone is not enough for sustainable business growth. Money is important, but without a strong management team, a clear financial system and a well-defined strategy, companies struggle to grow and reach a new level. That is why we combine financing with advisory and training programs.
We help companies develop management skills, increase profitability and enter export markets. We work through partner banks that operate even in the most remote regions of the country. This allows us to provide both financing and expert support to a larger number of entrepreneurs.
In Tajikistan, programs such as Women in Business, Youth in Business, Star Venture for startups, Blue Ribbon for corporate governance development, and the international mentoring platform MicroMentor are already operating.
Within the Advice for Small Businesses program, we work both with banks and directly with companies to improve financial management, business processes, marketing and other key areas.
More than 1,000 consulting projects have already been implemented and over 500 events have been held — covering digitalization, green transformation, export support and financial literacy.
Our approach is simple: when financing is combined with skills development, businesses become stronger and more sustainable, banks are more willing to lend, and the economic impact increases.
The results are already visible. Over the past three years:
· 86% of supported companies increased their turnover
· 63% improved productivity
· 12% expanded exports
In addition, 65% of businesses created new jobs — 581 in total.
We are also grateful to our donors. Support from the governments of Switzerland and Japan, the European Union, the Republic of Korea and other partners allows us to expand advisory services, bring international expertise and implement special programs for women, youth and startups.
Startups and Innovation
Q. The Bank actively supports startups in the region. What are the prospects for this program in Tajikistan and how do you assess the potential of the local startup ecosystem?
A. Supporting innovative companies is becoming an increasingly important part of our work in Central Asia. In Tajikistan we see strong potential for startup development, especially among young and technologically oriented entrepreneurs.
The ecosystem is still forming, but it is already showing activity and ambition to grow. Interest is increasing in digital services, IT solutions, fintech, and new approaches in agribusiness and services.
A young population, expanding internet access and digital infrastructure, as well as growing regional connectivity create favorable conditions for the emergence and growth of new companies.
Through the Star Venture program, the EBRD helps promising startups receive mentorship, evaluate their business models and prepare for attracting investment. Currently, we support five such companies in Tajikistan.
Our goal is to strengthen the entrepreneurial environment, improve business skills and help startups access financing. With consistent support and improvements in the business environment, the startup sector could become an important source of new jobs, technological development and economic diversification.
«The Private Sector Can Become a Powerful Driver»
Q. How do you assess the readiness of SMEs for digitalization, automation and the use of artificial intelligence? Which EBRD programs help businesses adapt to the new technological reality?
A. The level of digital readiness among businesses in Tajikistan is gradually increasing. Many companies are still automating basic systems such as accounting. At the same time, interest in automation and digital tools is growing, especially among young entrepreneurs.
The key factor is practical application of technology. Digitalization and artificial intelligence should deliver measurable results by improving productivity, enhancing cost control and strengthening managerial decision-making.
We support digital transformation through advisory services, training programs and various initiatives. In addition, we assist existing companies in integrating digital solutions into their operations.
Q. Which SME sectors in Tajikistan do you consider most promising for scaling up? How could this affect job creation?
A. Agribusiness and agricultural processing continue to have strong potential. Significant opportunities also exist in the services sector, including tourism and hospitality.
In the future, digital and technology-based services could also play a growing role. These sectors are labor-intensive and spread across different regions of the country, which creates conditions for inclusive employment growth.
However, unlocking this potential will require more systematic investment in education and workforce training in digital technologies, IT and artificial intelligence, particularly among young people. With the right development of competencies, this could become a realistic and promising direction for Tajikistan’s long-term development.
Q. More broadly, what is the potential of the SME private sector in driving economic growth if favorable business conditions are created?
A. Yes, absolutely. With continued improvements in the business environment — predictable regulation, fair competition, expanded access to financing and stronger management competencies — the private sector can become a powerful driver of economic diversification, productivity growth and job creation within the country.
At the EBRD, we remain committed to supporting Tajikistan’s private sector through both financial and non-financial instruments and through policy dialogue.
Our goal is clear: to help build a dynamic, resilient and competitive ecosystem capable of ensuring long-term economic growth and prosperity for the country.
Ms. Hargitai Profile
Zsuzsanna Hargitai, a citizen of Hungary, has served as Managing Director of the EBRD’s Small Business Finance and Development Department since June 2024. The department is responsible for supporting SMEs across all countries where the Bank operates.
From 2021 to 2024, she headed the EBRD’s operations in Central Asia, overseeing activities in Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan and Uzbekistan.
Hargitai has worked at the EBRD since 1992. During this time, she has led country offices in the Western Balkans, Hungary and Croatia, and held senior positions in strategy, evaluation and EU co-financing. From 2018 to 2021, she served as Regional Director for the Western Balkans.
She notes that small and medium-sized enterprises (SMEs) are not an abstract concept — they are real businesses and real jobs. In Tajikistan, the private sector accounts for a significant share of employment in the economy, while the contribution of SMEs to GDP, according to various estimates, is around one-third of the economy.
This sector provides income for thousands of families, supports regional development and forms the backbone of the domestic market. To understand the potential, it is useful to look at the experience of neighboring countries. For example, in Kazakhstan SMEs employ around 4.4 million people and account for approximately 40 percent of GDP. This clearly demonstrates the role small and medium-sized businesses can play when favorable conditions are created.
Tajikistan also has the potential to strengthen the role of SMEs. With further expansion of access to financing, development of entrepreneurial skills, and continued improvement of the business environment, the contribution of SMEs to economic growth and employment could increase significantly.
«We See Positive Dynamics»
Q. How do you assess the current business climate for SMEs in Tajikistan? What changes in recent years do you consider the most significant?
A. Tajikistan’s private sector is at an important stage of development. Despite economic progress and growing potential, the business environment remains challenging. Access to financing, regulatory barriers, and limited market access continue to restrain business growth.
At the same time, we see positive dynamics. Entrepreneurs are increasingly introducing principles of corporate governance, improving transparency and raising business standards. This is a key step, because sustainable growth begins with professionally managed companies.
SMEs play an important role in diversifying the economy, creating jobs and supporting regional development.
It is also important to highlight the role of the Government of the Republic of Tajikistan. The State Program for the Support and Development of the Private Sector for 2023–2027 demonstrates a commitment to creating a favorable business environment through regulatory simplification, stronger dialogue with entrepreneurs, and institutional development. Consistent implementation of these measures sends a positive signal to investors.
At the EBRD, we view the combination of private sector initiatives and government support as the foundation for further progress. Our goal is to work together with entrepreneurs, financial institutions and authorities to develop a competitive and resilient SME ecosystem that contributes to economic growth and quality job creation.
Q. What key challenges still hinder SME development, and what is critical for overcoming them?
A. The main challenges are well known: access to long-term financing, currency risks, productivity gaps and regulatory barriers. Without sufficient capital, companies cannot invest in modern technologies, attract qualified personnel, implement innovation or build sustainable business models.
Companies led by women and young entrepreneurs often face additional difficulties and stricter lending requirements. In some cases, promising companies lack either the financial resources or the management competencies needed to scale up.
Financing is only one side of the issue. The other is knowledge and skills development, which also requires continuous investment.
Our approach is comprehensive. We work through local partner banks to expand access to financing, including longer-term instruments and risk-sharing mechanisms. At the same time, we provide advisory and training support aimed at improving financial and corporate governance, operational efficiency and market positioning of companies.
«Clear and Stable Rules Are Needed»
Q. What are the EBRD’s priorities in supporting SMEs in Tajikistan in the coming years? How do they fit into the Bank’s overall strategy in Central Asia?
A. Our priorities in Tajikistan align with the Bank’s overall strategy in Central Asia and focus on four key areas.
First, we help small and medium-sized businesses gain greater access to financing by strengthening local banks and financial institutions.
Second, we support increased competitiveness by improving productivity and corporate management practices.
Third, we promote entrepreneurship among women and young people so that economic growth becomes more inclusive and equitable.
Fourth, we help businesses adopt environmentally friendly solutions and modern digital technologies.
For us, green solutions and digitalization are not separate topics but tools that make businesses stronger and more resilient. In Tajikistan, support for SMEs remains one of the main priorities of our work. In the coming years we will continue helping companies strengthen their positions, access financing and better respond to external challenges.
Across the region, our goal is to promote sustainable, diversified economies with a strong private sector and clear market rules.
Q. Strategically speaking, what changes would you like to see in the SME sector over the next 3–5 years with active EBRD support?
A. We would like to see more Tajik companies grow from small businesses into medium-sized enterprises.
When companies grow, they create new jobs, invest more in development and make a more significant contribution to the country’s economy.
It is also important for businesses to operate transparently — maintaining clear financial reporting, following modern management standards and taking environmental and social requirements into account. This helps companies gain the trust of partners and investors and enter new markets.
However, such growth is only possible in a favorable business environment. Clear and stable rules of the game, fair competition and equal access to financing for all enterprises are essential. If these conditions are ensured, Tajik companies will be able to compete not only domestically but also increasingly in international markets.
Q. Which financial instruments provided through local banks have proven most effective in expanding SMEs’ access to finance?
A. In Tajikistan we cooperate with five local banks: Bank Arvand, Iman International Bank, Investment and Credit Bank of Tajikistan, Humo Bank and Eskhata Bank. As of the end of December 2025, the combined share of assets held by our partner institutions accounted for more than 30 percent of the total assets of the banking sector.
We provide partner financial institutions with medium-term credit lines for green economy financing, support for women entrepreneurs and youth in business, trade finance instruments, risk-sharing mechanisms, direct equity investments and extensive technical assistance.
To date, the EBRD has provided partner credit institutions with financing totaling 273 € million, of which 51 percent (or 140 € million) was allocated to trade finance in the country.
During 33 years of operations in Tajikistan, the Bank has actively supported the development of the financial sector for 26 years, including microfinance. We intend to continue expanding cooperation with existing and new financial institutions, combining financial instruments with technical assistance for the sustainable development of the SME sector.
Consulting, Training and Mentorship
Q. The EBRD is known not only for financing but also for developing companies through advisory and training programs — non-financial services. Why does the Bank invest in these? What results have you already seen in Tajikistan?
A. We understand that financing alone is not enough for sustainable business growth. Money is important, but without a strong management team, a clear financial system and a well-defined strategy, companies struggle to grow and reach a new level. That is why we combine financing with advisory and training programs.
We help companies develop management skills, increase profitability and enter export markets. We work through partner banks that operate even in the most remote regions of the country. This allows us to provide both financing and expert support to a larger number of entrepreneurs.
In Tajikistan, programs such as Women in Business, Youth in Business, Star Venture for startups, Blue Ribbon for corporate governance development, and the international mentoring platform MicroMentor are already operating.
Within the Advice for Small Businesses program, we work both with banks and directly with companies to improve financial management, business processes, marketing and other key areas.
More than 1,000 consulting projects have already been implemented and over 500 events have been held — covering digitalization, green transformation, export support and financial literacy.
Our approach is simple: when financing is combined with skills development, businesses become stronger and more sustainable, banks are more willing to lend, and the economic impact increases.
The results are already visible. Over the past three years:
· 86% of supported companies increased their turnover
· 63% improved productivity
· 12% expanded exports
In addition, 65% of businesses created new jobs — 581 in total.
We are also grateful to our donors. Support from the governments of Switzerland and Japan, the European Union, the Republic of Korea and other partners allows us to expand advisory services, bring international expertise and implement special programs for women, youth and startups.
Startups and Innovation
Q. The Bank actively supports startups in the region. What are the prospects for this program in Tajikistan and how do you assess the potential of the local startup ecosystem?
A. Supporting innovative companies is becoming an increasingly important part of our work in Central Asia. In Tajikistan we see strong potential for startup development, especially among young and technologically oriented entrepreneurs.
The ecosystem is still forming, but it is already showing activity and ambition to grow. Interest is increasing in digital services, IT solutions, fintech, and new approaches in agribusiness and services.
A young population, expanding internet access and digital infrastructure, as well as growing regional connectivity create favorable conditions for the emergence and growth of new companies.
Through the Star Venture program, the EBRD helps promising startups receive mentorship, evaluate their business models and prepare for attracting investment. Currently, we support five such companies in Tajikistan.
Our goal is to strengthen the entrepreneurial environment, improve business skills and help startups access financing. With consistent support and improvements in the business environment, the startup sector could become an important source of new jobs, technological development and economic diversification.
«The Private Sector Can Become a Powerful Driver»
Q. How do you assess the readiness of SMEs for digitalization, automation and the use of artificial intelligence? Which EBRD programs help businesses adapt to the new technological reality?
A. The level of digital readiness among businesses in Tajikistan is gradually increasing. Many companies are still automating basic systems such as accounting. At the same time, interest in automation and digital tools is growing, especially among young entrepreneurs.
The key factor is practical application of technology. Digitalization and artificial intelligence should deliver measurable results by improving productivity, enhancing cost control and strengthening managerial decision-making.
We support digital transformation through advisory services, training programs and various initiatives. In addition, we assist existing companies in integrating digital solutions into their operations.
Q. Which SME sectors in Tajikistan do you consider most promising for scaling up? How could this affect job creation?
A. Agribusiness and agricultural processing continue to have strong potential. Significant opportunities also exist in the services sector, including tourism and hospitality.
In the future, digital and technology-based services could also play a growing role. These sectors are labor-intensive and spread across different regions of the country, which creates conditions for inclusive employment growth.
However, unlocking this potential will require more systematic investment in education and workforce training in digital technologies, IT and artificial intelligence, particularly among young people. With the right development of competencies, this could become a realistic and promising direction for Tajikistan’s long-term development.
Q. More broadly, what is the potential of the SME private sector in driving economic growth if favorable business conditions are created?
A. Yes, absolutely. With continued improvements in the business environment — predictable regulation, fair competition, expanded access to financing and stronger management competencies — the private sector can become a powerful driver of economic diversification, productivity growth and job creation within the country.
At the EBRD, we remain committed to supporting Tajikistan’s private sector through both financial and non-financial instruments and through policy dialogue.
Our goal is clear: to help build a dynamic, resilient and competitive ecosystem capable of ensuring long-term economic growth and prosperity for the country.
Ms. Hargitai Profile
Zsuzsanna Hargitai, a citizen of Hungary, has served as Managing Director of the EBRD’s Small Business Finance and Development Department since June 2024. The department is responsible for supporting SMEs across all countries where the Bank operates.
From 2021 to 2024, she headed the EBRD’s operations in Central Asia, overseeing activities in Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan and Uzbekistan.
Hargitai has worked at the EBRD since 1992. During this time, she has led country offices in the Western Balkans, Hungary and Croatia, and held senior positions in strategy, evaluation and EU co-financing. From 2018 to 2021, she served as Regional Director for the Western Balkans.
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