Several days ago, Accelerate Prosperity signed a contract for 3 million somonis with Azam Ahrulloyev, founder of Tajikistan's first brand of footwear and leather goods AZAM. 

In his interview with Asia-Plus, Azam said 3 million somonis were provided for opening a new factory for the production of shoes and leather goods in Khorog, the capital of the Gorno Badakhshan Autonomous Region (GBAO).  

Funding was reportedly received by Sandal Limited Liability Society; Accelerate Prosperity is investor and also shareholder in this company.  According to Azam, he is also shareholder in Sandal Limited Liability and he owns 51 percent of the shares in this company.  

The activities of the factory will not relate to the AZAM brand.  It will be a completely different factory with a completely different range. 

“The factory will be located in GBAO’s capital, Khorog, because it will be more convenient to import equipment from China,” Ahrulloyev said.  

Azam’s tasks will include training employees, establishment of production and sales.   

This project is reportedly being implemented within the framework of cooperation between Accelerate Prosperity and the Aga Khan Foundation (AKF).  

“The premises for the factory have already been renovated, equipment has been ordered in China, the logistics of raw materials from there is more convenient,” Ahrulloyev noted, adding that the factory will open in a couple of months.  

Accelerate Prosperity notes that Azam Ahrulloyev is a young entrepreneur who started his business in 2016 by purchasing second-hand sewing machines for only $25.  In the midst of an unfavorable business environment and with only a $3000 loan from his grandfather, Ahrulloyev reportedly began creating shoes with minimal equipment and no additional staff.

Private enterprises play a central role in driving economic growth and generating employment in Tajikistan. Fostering vibrant small and growing businesses is critical for both economic development and poverty reduction.  However, most enterprises in Tajikistan are micro and remain that way.  The risk profile and regulatory constraints for financial institutions make it impossible to provide the type of financing required for small businesses to grow.  The loan tenures are too short, collateral requirements are too high, and repayment terms are not flexible.  With no access to technical assistance and mentoring services, small enterprises usually get stuck in a low-growth trap.

Ahrulloyev successfully applied for and completed the business training program offered by Accelerate Prosperity, to support start-ups and small and medium businesses.  Ahrulloyev advocated for his business at the project's Pitch Presentation event in Dushanbe, the capital of Tajikistan, and was able to secure an additional US$23,000 to fund his growing business.  His company, Azam's Shoes, reportedly employs 25 people, half of whom are women and youth, and the business has now become profitable.

The funds allowed Ahrulloyev to purchase a modern leather cutting press, folding, and sewing machines, and a press for gluing soles and polishing the leather.  In August 2019, the company opened its new branch in the north of the country to produce more shoes and reach more customers.  Today, Ahrulloyev is known as the first Tajik producer of leather shoes.  He receives continuous mentorship and training on business acceleration through Accelerate Prosperity project to ensure he has every opportunity to succeed.

Accelerate Prosperity is a new global initiative of the Aga Khan Development Network (AKDN) in Central and South Asia and provides technical expertise, creative financing solutions and market connections for small and growing businesses.  It operates in Pakistan, Tajikistan and Kyrgyzstan