Our flagship Incofin Climate-Smart Microfinance Fund (ICMF) has made its first investment: USD 2 million in Bank Arvand, Tajikistan.  

ICMF sets its focus on the social aspects of climate change. The fund invests in those who must address the impacts of climate change, even though they may not be the ones responsible.  

With Tajikistan, we see a relatively green country with hydropower electricity systems, yet the risks posed by climate change are real and imminent. 

Understanding Tajikistan’s Climate Challenges

Tajikistan’s environmental landscape presents a unique set of challenges. Rising temperatures, increased aridity, and the threat of flooding pose significant risks to both livelihoods and ecosystems. It is important that proactive measures are taken to mitigate these risks and foster adaptation efforts.  

Bank Arvand: Leading the Charge in Green Finance 

Bank Arvand stands at the forefront of green finance in Tajikistan. Founded with a mission to provide financial inclusion to marginalized communities, the bank has embraced sustainability as a core principle. When the CEO, Shoira Sadykova, visited our offices last week, we learned about how ICMF funds are being put into action, in the context of Bank Arvand’s journey.

Impact of the Incofin Investment 

The recent investment of USD 2 million from ICMF has catalyzed Bank Arvand’s efforts to scale up its green finance initiatives. By providing critical funding resources, the fund has helped Bank Arvand to expand its reach and support a broader range of climate-smart projects.  

Behind every loan is a story of transformation. Bank Arvand’s clients, from small-scale farmers to budding entrepreneurs, are leading the charge in combating climate change at the grassroots level. Through collaborative efforts and community-driven projects, these individuals are finding innovative solutions to environmental challenges, often securing group loans. 

There are stories of shared irrigation systems and eco-friendly production methods. There are businesses related to recycling, organic farming practices and water conservation projects. The impact of this investment is already being felt, promoting resilience and adaptation in the face of climate change. 

Looking Ahead: Scaling Up Sustainable Finance

As investors, we have a crucial role to play in supporting climate-smart activities. The Incofin Climate Smart Microfinance Fund (ICMF) supports initiatives that promote climate resilience and adaptation, empowering communities to thrive in the face of environmental challenges.  This could involve:

Financial and Non-Financial Services  

  • General Financial Services: Tailored financial solutions for families impacted by climate change.  
  • Climate Data Collection, Monitoring, and Distribution Systems: Building community resilience through early warning systems and strategic relocation initiatives.  
  • Migration Financing/Remittances: Support for individuals relocating to new, climate-resilient locations.  
  • Emergency Loans and Post-Disaster Financing: Swift financial assistance for recovery after adverse events, complemented by a dedicated program for post-disaster funding.  


  • Climate-Resilient Agriculture Loans: Support for farmers with climate-resilient seeds, fertilizers, pesticides, smart irrigation systems, emergency shelter for livestock, soil rehabilitation, and training to enhance productivity while implementing sustainable agriculture practices.  
  • Crop or Index Insurance: Providing coverage for risks such as rainfall, drought, livestock, and yield fluctuations.  

Water & Sanitation  

  • Water Purification Loans: Funding for water purifiers, solar water pumps, rainwater harvesting, and wastewater relocation.  
  • Financing Water Businesses: Supporting companies engaged in portable distribution/kiosk setups, desalination, and other water-related ventures.  

Habitat & Livelihood  

  • Weatherproofing Home Loans: Financial support for weatherproofing homes against climate-related challenges.  
  • Roof Financing with Rainwater Collection: Assistance for the installation of roofs with built-in rainwater collection systems.  

Resilient Energy Systems & Transport  

  • Clean Energy Equipment Loans: Support for purchasing renewable energy equipment, including solar panels, clean cooking stoves, and micro-biomass power generators. Enhancing grid resilience.  
  • Leasing and Loans for Sustainable Transport: Facilitating income generation through electric vehicles, e-charging infrastructure, and batteries. 

By directing our investments towards these initiatives, we can contribute to building a more resilient and sustainable future for all. At Incofin, when we think about excellently managed female-led institutions, we start thinking about Bank Arvand. So, we are thrilled to see Bank Arvand as the recipient of the first investment from the Incofin Climate Smart Microfinance Fund (ICMF), and we look forward to many more impactful investments to come.  

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