Supporting the rural drinking water microloan program in Tajikistan

• Aug 8, 2025
• 1 min

Rural households in Tajikistan lacked access to safe drinking water due to limited infrastructure and the absence of financing options tailored to household needs. Microfinance institutions (MFIs) were also unprepared to offer water-specific loan products. 

MSC designed microcredit solutions to improve households’ access to safe drinking water in rural and peri-urban areas. We helped MFIs develop water-specific credit products that respond to households’ needs and create willingness among households to invest in household water connections. We conducted a comprehensive financial landscape assessment to identify potential MFI partners and evaluate their readiness for product rollout. A demand-side assessment in five target districts complemented the landscape assessment to capture rural households’ preferences and financial behavior regarding water services. 

We then codeveloped three customized microloan products and prepared a detailed capacity development and deployment plan for the selected MFI. We also conducted a stakeholder workshop to validate the findings and cocreate financing strategies. The workshop involved governments, donors, MFIs, and local communities. 

The initiative laid the groundwork for the rollout of water microcredit products to improve or expand 12 rural drinking water systems. The products benefited 35,000+ people, schools, and health facilities. 

The USAID commissioned this project.