USAID Market Driven Rural Development Activity

BACKGROUND

The USAID Market Driven Rural Development (MDRD) is a nationwide Activity that accelerates agricultural sector growth to enable inclusive access to economic opportunities in rural communities.

USAID aims to sustainably improve the economic well-being for farmers, youth, and women involved in agriculture markets in Tajikistan by facilitating increased market access, productivity, and access to finance. MDRD will also mainstream gender and youth while supporting adoption of climate smart agriculture.

GOALS

INCREASED INVESTMENT IN THE AGRICULTURE SECTOR

Develop multi-faceted partnerships to increase the flow of capital (investment, commercial finance, microfinance, value chain finance) to the sector. Build capacity for the financial service providers, both bank and non-bank, and other value chain actors on how to customize agricultural sector credit and loan products. Strengthen relationships between the market actors, support improved access to finance and investments and expand the use of financial services by women and youth.

IMPROVED VALUE CHAIN PRODUCTIVITY

Limited value chain productivity in Tajikistan results from many barriers, including lack of irrigated land, cost of imported inputs and the low-quality of local inputs, limited storage infrastructure, and unreliable electricity supplies. Reduce these barriers through strengthened and formalized commercial relationships that mitigate risk and facilitate the transfer of knowledge, capital, and technology.

GREATER ACCESS TO PROFITABLE MARKETS

Identify market opportunities and requirements and link selected Tajik small to medium enterprises to domestic, regional, and international markets.

CROSS-CUTTING OBJECTIVES

• Promote economic participation and well-being of women and youth in Tajikistan agriculture markets.
• Promote climate smart agriculture practices.

ANTICIPATED RESULTS

At the completion of the five-year activity, USAID envisions strengthened and formalized commercial relationships between market actors, including lead firms, producer organizations, service providers, financial institutions, and the public sector. MDRD facilitates increased adoption of and investment in climate smart practices and technologies, help Tajik agribusinesses access new markets, and unlock the equitable flow of capital to the sector, driving inclusive rural development.