The purpose of this report is to explore whether the TMSEF will contribute to pro-poor economic growth in Tajikistan and how, and to what extent, DFID’s support might enhance the poverty focus. At this early stage of the programme, it is too soon to capture actual impact. The aim is therefore to assess potential outreach and impact.

The report presents the findings of a socio-economic assessment of the TMSEF, which, based on the programme experience up to end June 2004, addresses questions of:
	outreach (who are the clients – enterprises, gender, poverty level)
	direct impact (for client enterprises and their households)
	indirect impact (for non-household paid employees in supported enterprises for other households in the community)
	wider effects (more transparent business environment, enhanced financial intermediation)
The assessment draws on both quantitative data maintained by TMSEF about its clients and on qualitative interviews conducted with clients and some of their paid employees. The methodology for the assessment and the poverty context in Tajikistan is discussed briefly below as part of this introduction (with more details provided in the Appendices). The findings are presented in Section 2. Section 3 places the TMSEF in the context of the microfinance sector in Tajikistan. This section draws on secondary data for the region and on discussions held by the team with representatives of micro-credit NGOs, international organisations, and banks based in Dushanbe and Khujand during the design visit.
Conclusions on potential impact are presented in Section 4, which also outlines options for DFID and EBRD to consider in the endeavour to promote pro-poor economic growth in the poorest country of the Former Soviet Union/Central Asian region.
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