The Furuz Equation:
Small Loans + Small Businesses = Big Impact
March 2012

Tajikistan suffers from extreme unemployment. Their GDP is one of lowest of the former Soviet republics.  Some men are able to move to the cities and offer themselves as day laborers.  But many people, possibly 1 million, leave their homes to find work in Russia or other countries. This takes a devastating toll on families, villages and the country as a whole.

To help combat this problem, Millennium began a micro lending organization called Furuz Micro-Loan Organization.  Furuz is dedicated not only to lending money but to working with the small business owner or entrepreneur to give them the best chance for success.  The Furuz 2011 annual report says their “purpose is to provide high quality financial services to the low income population with a special focus on small business development.  We do not only want to provide access to credit, but we make sure that funds are being invested into a business that has real potential for growth and profit.  The mission of MLO “Furuz” is to contribute to the development of the society by small business development.”

Since its inception in 1999, Furuz has issued 10,728 loans.  In 2011 there were 1,204 loans issued and the repayment rate for the year was 107%! (This is over 100% because it includes several repayments of past due loans.) The percentage of loans to women has been steadily increasing as well.  At the end of 2011, 41% of the active clients were women.  Furuz has four offices throughout the country and employs 27 staff.  They concentrate much of their energy helping people in poorer, rural areas.  Their clients are their best advertising…

Haitigul is a single mother and works as cleaning lady in a restaurant. There she heard from people that Furuz gives small loans. She did not have any cows at home to supplement her family’s food with milk and cheese.  She decided to take a $200 loan to purchase one small cow. She says: “I am happy working with your organization. Thanks a lot to all of you that you took the hand of poor people like me. God willing, I continue cooperation with your organization because I got blessed through you. Now I own one cow.” Presently, Haitigul has her fourth loan of $260.

Abdughani, sells fabric in the main market. In 2001, he received his first loan of $500. At that time he had only one booth where he partnered with his brother. Their living conditions were difficult; he owned a two room apartment and his brother a one room apartment. He tells us: “When I started working with you, God blessed my work. Things moved forward well. Now I own a four room apartment and my brother a three room apartment. Both of us also have a car. I am glad about the work with your organization. Thanks to all of you.” Now Abdughani has two booths to market his fabric.  He recently took his eleventh loan, this one at $1700.

Jumagul has a small business of sewing and selling plastic bags made from recycled flour bags. Her first loan was for $123. She says: “I have been working with your organization for four years. The reason is that the staff of your organization did not hold back any help but they provided the needed funds quickly. Therefore I am very grateful."