History and background of establishment of Center of Training and Development of Microfinancing of Tajikistan.

Center of Training and Development of Microfinancing of Tajikistan (CTMT), which is founded by Association of Microfinance Organizations of Tajikistan was officially registered on 14 October 2010. Today, the Training Center is an independent structure under AMFOT and has a status of limited company.

Foundation goal of Center of Training and Development of Microfinancing is:

–        Provision of highly qualified educational trainings, scientific-research and other services for microfinance sector;

–        Development and improvement of professional level and qualification of staff of microfinance organizations and commercial banks;

–        Development of microfinance services through implementation of innovative products in financial institutions of Tajikistan.

Organizational and legal form:

       LLE “Center of Training and Development of Microfinancing of Tajikistan”

Mission

            Provision of high-quality services for improvement of professionalism and capacity development of financial sector of the Republic of Tajikistan.

Vision

            The leader on training of highly-qualified specialists and implementation of innovations in the sphere of financial services of RT.

History of development of educational services for microfinance sector has started in 2004, when Association of Microfinance Organizations of Tajikistan has been established and first seminars and consultations for AMFOT members have been offered based on first requests of association’s founders. The same year, adoption of Law “On Microfinance Organizations” became as other important event for the sector and according to the Law, all institutions providing microfinance services for that period had to obtain registration and license and certificates with regulating authority for implementation of their activity.

This was a good basis for Association and supporting technical agencies to develop first plan of trainings and seminars for improvement of awareness of MFO staff on different legal aspects. Therefore, first topics for trainings, seminars and consultations became the issues related to selection of appropriate registration form of MFO, registration procedures, organization of adequate, professional accounting and reporting, taxation issues etc.

Main problem faced by the association in the period of establishment of its activity was the fact that although newly established MFOs had a need in educational trainings of association, they were not ready to pay for such services because had many years experience of receiving any educational trainings and seminars from international donor organizations on free of charge basis.

The association had a goal to change thinking of sector representatives and teach them to pay for received services. The task was not simple and practically was not possible without support from German Technical Cooperation (GTZ), that started for that period its support to infrastructure development of microfinance sector in Tajikistan and subsidized provision of AMFOT educational services. First year of AMFOT’s activity, only 10-15% of expenses were covered by participants’ fees and other part was covered by GTZ grants.

For the first period of development of educational services, demand for specific topic of trainings has been not studied in frames of specialized researches, but has been justified by AMFOT through understanding of general, formed situation.

Following years, since the end of 2005, AMFOT conducted annual surveys of its members to evaluate their attitude towards provision of trainings on specific topics (urgency, desire to obtain knowledge and skills), and quality of services, provided by AMFOT and possibility of organizations to pay for those services. For the end of 2009, such researches were conducted in frames of general evaluation of AMFOT activity for specific period; but since 2010, in frames of Training Center, founded by AMFOT would be organized study of achieved capacity building of MFO staff (Capacity assessment), and study of demand for improvement of personnel proficiency of MFO and commercial banks.

There is a positive tendency of MFO solvency development for the period of 2005 to 2010. If in the beginning stage participants were able to pay only 15% of training expenses, then in 2006, 30-35% of training and consultations expenses were covered by participants’ fees. In 2007-2008, the participants’ fees of participants raised to 50% and 65% accordingly. In 2009, self-repayment of trainings in some regions of country (e.g. Dushanbe, Direct Rule Districts, Sogd) achieved 95%, although in rest regions (Khatlon and GBAO) the level was same as 65%-70%.

In 2010, the strategy towards self-repayment of services was changed and if before the training, announced to the sector, was surely organized for at least 12 participants, irrespective whether it was self-repayment or not; then since beginning of 2010, AMFOT working group decided to conduct training only if training income fully covered its expenses. The decision was accepted because of matured plans of AMFOT General Meeting regarding foundation of independent commercial structure for provision of educational programs and it was reasonable during the year to evaluate the possibilities and test a new approach.