Investing in Tajikistan's development

In Tajikistan, legend has it that Humo is a magical bird that grants happiness and good luck to all those it flies over. Represented by the color gold, it symbolizes the sun and rebirth. Humo is also the name of one of the inclusive finance institutions we support through the Aequitas investment fund in which we participate.

Aequitas invested the equivalent of US$2 million in this organization, which focuses on micro, small and medium-sized enterprises in the poorest areas of Tajikistan.

Founded in 2008, Humo is now the third largest microfinance institution in this Central Asian country. It serves a customer base of 83,000 people, 43% of whom are women, and offers them a wide range of products: savings, credit for business, production, services, agricultural development and consumer needs, remittances, foreign exchange and payment services.

It is worth noting that in Tajikistan, 12% of the population has no bank account and 40% has no access to credit. In this difficult context, Humo stands out in many ways. How does it achieve this?

A few years ago, Humo embarked on a digital transformation that has made it one of the most technologically advanced "micro-deposit institutions" in Tajikistan.

• With the HumoOnline online platform and mobile application, Humo's customers can apply for a loan online, use their mobile wallet, make payments and repay or consult their credit balance.
• The Orzu ("dream" in Tajik) platform integrates various credit products into a virtual payment card.
• Humo also offers QR code payment services, which can be applied to a mobile wallet or an Orzu card.
• Finally, Humo launched HumoLab in 2018 to propel the development of its business applications and software. Starting with a dozen people, the HumoLab team now numbers 70; it has had to relocate its premises twice to accommodate this growth.

In Tajikistan, women make up around 45% of the working population, but only 26% of the entrepreneurial workforce. Why is this? Because they have less access than men to opportunities to develop their skills, especially their entrepreneurial skills. As a result, women's estimated income is 4.5 times lower than that of men.

Humo has set itself the goal of reaching at least 40% women among its clientele, at all times. To achieve this, the institution offers gender equality training to its managers and staff, and financial literacy training to its female customers. It has also put in place incentives to encourage the granting of loans to women.

Nazokat Markaeva is one of the entrepreneurs supported by Humo. She first obtained a loan of TJS 1,000 (approx. CAD 125), which enabled her to plant wheat and potatoes. A good harvest enabled her to repay her debt in full and store part of her harvest. She then obtained other loans of increasing amounts, until she succeeded in obtaining a CAD 3,000 loan to start raising cattle. 

Today, this determined entrepreneur also makes pillows and jewelry, and continues to envisage new projects for the future. She claims that it's thanks to her ambitions and hard work, but also to Humo's financial support, that she was able to make her dreams come true.

Equipped with a solid environmental and social policy, Humo provides financing, technical assistance and investment incentives to the private sector to contribute to the country's sustainable development. 

Along with its partners, Humo encourages residential and commercial borrowers to invest in green and innovative solutions that promote the efficient use of electricity, water and land. 

Humo also created a special working group as part of its Transition Planning Programme established with the EBRD (European Bank for Reconstruction and Development)’s Green Finance Academy, completing an estimated 50 hours of learning and practical working across governance, strategy, risk management, metrics, targets and disclosures.

The organization was awarded the title of Leader in Green Inclusive Finance in 2021 by the Microfinance Centre in recognition of its achievements in the fields of green finance, climate resilience and energy efficiency