Dushanbe, Tajikistan, February 16, 2009—
IFC, a member of the World Bank Group, is helping the Tajik agribusiness company Soughdagroserv (SAS
)
improve its corporate governance practices to strengthen its ability to attract investment, which could help create opportunities for farmers across the food supply chain.
SAS, which is wholly owned by farmer shareholders, is the first Tajik company to benefit from IFC’s Central Asia Corporate Governance program. Under the program, IFC will assess SAS’ corporate governance practices and recommend ways to align them with international best practices. IFC also will provide advice and training for SAS staff and shareholders.
“The financial crisis is being felt in every sphere of business across Tajikistan, so IFC’s expert advice is very timely and much needed,” said Abdusattor Haydarov, SAS Executive Director. “By improving our corporate governance, we will have a better chance to attract investment and expand our operations, thus helping to better serve our community and shareholders.”
Tajikistan’s agricultural sector is the main source of income for much of the country, employing over 60 percent of its workforce. But equipment and management practices remain outdated. Financing, which is vital for farmers to modernize and expand their operations, remains limited. IFC’s work with SAS is expected to have a broad effect, by demonstrating that good corporate governance can bring benefits for the entire Tajik business community.
SAS provides financial, marketing, retail and other services to farmers, manufacturers, and cotton and other agricultural processing firms along the entire chain of the agricultural process. The company operates primarily in rural areas of Tajikistan, helping to promote increased income for local farmers by creating opportunities for independent production and commercial farm activity.
Since 2006, IFC has worked to improve corporate governance of companies and banks across Central Asia, helping them enhance operations and increase their ability to attract investment.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
