This component builds on the experience of previous EU-TACIS projects, for example ELS in Namangan region (phase I) and its aim is to increase and diversify access of low-income groups and individuals to financing.

The Component strengthena the capacity of existing microfinance institutions to provide financial services to beneficiaries and support the development of farmers (dehkan enterprises) and self-employment by providing practical assistance in organization of production and business.

In close collaboration with the authorities, the project defines the most appropriate schemes of microfinancing for each district-beneficiaries: local microfinance organizations, savings associations, cooperative and individual crediting. Distribution and administration of microcredit funds for small trade, animal selection, microleasing and support to farmer’s enterprises.

Training of personnel working at microcredit organizations, especially selected managers and accountants. Training includes accounting, credit extension, repayment of loans, business planning and profit estimation. After a certain period of time from the initial implementation of the programme, information analysis, share of knowledge and skills amongst beneficiaries will be carried out as a vital element of continuous training.

Activities “on the support of farmers (dehkan enterprises) and self-employment” support selected dehkan enterprises in improving cropping methods, develop cattle-breeding, and organize production and business. The component provides initial start up support and specialized training to small dehkan’s enterprises. This support will include provision of extension services and study tours at all levels to learn from and share concrete experience of community supported small farmer enterprises in other parts of the country or abroad. The component will also combine technical support and advisory services from international and national agro-specialists.

At the end of the project, the following results are expected: