EBRD increases investments in Tajikistan fourfold – Holger Wiefel (Exclusive Interview)

BAKU, Azerbaijan, February 17. Four years ago,
the EBRD’s annual investments in Tajikistan’s real sector typically
amounted to around 22 million euro, and this figure has quadrupled
since, Head of the European Bank for Reconstruction and Development
(EBRD) Resident Office in Tajikistan, Holger Wiefel, told Trend in an exclusive
interview.

According to him, the EBRD supports government initiatives aimed
at strengthening the national economy and enhancing the country’s
competitiveness.

"We have jointly identified priority areas for Tajikistan, where
financial resources and knowledge will be particularly valuable.
They are reflected in our 5-year strategy for the country approved
by the EBRD’s shareholders last year," he said.

Holger Wiefel noted that the Bank is also exploring
opportunities in new sectors, including telecommunications, media,
technology, and natural resources.

"The EBRD is actively promoting the development of clean and
renewable energy sources. We would like to commend the government
for drafting Tajikistan’s new investment legislation and strategy,
recently approved by the President. Our Bank did a lot of
preparatory work for the Dushanbe Invest-2025 forum, which
attracted a lot of international attention. Trade missions of
foreign embassies based in Dushanbe remained very busy throughout
2025 as well," EBRD Head of Tajikistan said.

He separately drew attention to the World Bank’s report "Tools
of Transformation: Boosting Productivity Growth in Europe and
Central Asia".

"According to this recent study, improving the country’s
investment climate could boost FDI inflows by up to 80 per cent,
equivalent to $1.5-2 billion annually. It highlights that
Tajikistan has strong untapped potential for increasing its trade
volume," Holger Wiefel concluded.

At the same time, Holger Wiefel emphasized that the EBRD will
invest in renewable energy projects and promote energy efficiency
measures across various sectors, strengthening Tajikistan's
capacity to adapt to climate challenges.

"I have already mentioned our newly approved country strategy
for Tajikistan. It covers all the areas, which offer a significant
growth potential. First of all, we are talking about renewable
energy, resources, and energy efficiency," he said.

Furthermore, Wiefel noted that the bank will also finance
investments in transport infrastructure to enhance regional and
domestic connectivity, supporting trade and economic
integration.

"It will also promote digital infrastructure development to
modernize the economy and improve service delivery. Our plan is to
work with municipalities across Tajikistan to improve the delivery
and sustainability of urban services, including water supply and
urban transport," Wiefel delineated.

He further stated that the bank will continue its fruitful
cooperation with partner banks to enhance the competitiveness of
local firms and expand access to financial services, particularly
for small and medium-sized enterprises.

He emphasized that the EBRD supports the development of
public-private partnerships and private sector initiatives in
Tajikistan, adding that public-private partnerships (PPPs) in
Tajikistan are still in their nascent stages and will require
further alignment of international best practices with national
legal frameworks.

"The EBRD is actively assisting the country in exploring PPP
opportunities, particularly in the transport and green energy
sectors. The first renewable energy projects, including the initial
renewable energy auctions, are expected to commence this year,"
stated Holger Wiefel.

Moreover, he emphasized that Tajikistan has requested EBRD’s
support to enhance investment in its raw materials sector and to
modernize its broadband infrastructure.

"The Tajik authorities have asked for our assistance in
improving the investment appeal of the country’s critical raw
materials industries and in financing the expansion of broadband
capacity. These are areas where PPP solutions could be particularly
effective," the Head of the EBRD Resident Office in Tajikistan
added.

At the same time, Holger Wiefel emphasized that the EBRD's 38
million euro sovereign loan will help finance the modernization of
a 49-kilometer section of the Dangara to Guliston road in
Tajikistan, as well as the construction of charging infrastructure
for electric vehicles, adding that this road, built in the 1930s as
part of a major international highway, is an important link between
the north and south of the Khatlon region - an area that generates
more than 53% of Tajikistan’s agricultural output and is home to
35% of the country’s population.

"This project will turn the current single-carriageway category
II road into a dual-carriageway category I road, significantly
increasing the road’s capacity and shortening delivery times for
cargo across the Khatlon region and beyond, thereby stimulating
trade. This project will be supported by an 83.5 million euro grant
provided by the Asian Development Bank," he said.

Answering a question on how current and planned EBRD projects
contribute to sustainable economic growth and regional integration,
he emphasized that the launch of all six hydroelectric units of the
Qairokkum hydropower plant (QHPP) in November 2025 marked the
completion of a major renewables project in Tajikistan.

"Rehabilitation measures at QHPP, which provides electricity to
500,000 people in the Sughd province, included concrete dam works
and the installation of hydraulic steel components, turbines, and
electromechanical equipment. As a result, the plant’s installed
capacity has increased from 126 MW to 174 MW. The upgrade
introduced innovative climate-resilience measures, enabling the
plant to cope with the expected impact of climate change on the
country’s hydrological systems," he said.

The director concluded that the implementation of these upgrades
was supported by a $196 million financing package organized by the
EBRD.

Meanwhile, Holger Wiefel said that Tajikistan's successful
cooperation with international organizations, such as the approval
of the World Bank's budget support program and the current
International Monetary Fund's Policy Coordination Instrument
program, is an important factor in the country's medium-term growth
prospects.

"I would like to refer you to the latest EBRD’s Regional
Economic Prospects report, where we forecasted Tajikistan’s economy
to grow by 7% in 2025 and 5.7% in 2026 on the back of ongoing
investments in priority infrastructure," he said.

Wiefel noted that the EBRD shares the World Bank’s view that
Tajikistan can better utilize its labor force through improved
efficiency in labor markets, more flexible work arrangements, and
enhanced collaboration between educational institutions and
businesses.

"When paired with creating a more favorable environment for
investment, such structural changes have the potential to
significantly increase productivity and drive sustained economic
expansion. Similarly, we share the IMF’s view that comprehensive
reforms focused on strengthening the governance of Tajikistan will
be essential to maintaining robust economic growth in the coming
years," he added.

He further emphasized that key reform priorities include
enhancing transparency and oversight of state-owned enterprises,
bolstering anti-corruption measures, and strengthening
institutional accountability.

Clear governance frameworks and transparent policymaking are
vital to creating a favorable business climate. These improvements
will enable private sector investment to drive job creation and
unleash the economy's full long-term potential," he concluded.