CGFT Business Model and Framework

Since its founding in 2014, CGFT helped strengthen the financial sector of Tajikistan by working to adapt international best practice into local contexts. Through its combination of credit guarantees and technical assistance to PFIs, CFGT's business model provided better and more efficient access to finance for Tajik MSMEs and created a wide-reaching developmental impact.

Photographer: Christian Vagt

Business Model of CGFT

CGFT’s business model centered on credit guarantees as instruments for benefiting Tajik MSME borrowers through its PFIs. Throughout its operation, CGFT ensured the balance of interests among its target groups of MSME borrowers as well as lenders. CGFT’s proven model of success ensured:

Insurance to PFIs: The loan portfolios of the PFIs were covered by cash-backed guarantees

Support to MSMEs: Easier access to finance for borrowers through incentivized PFIs

International Security: CGFT’s financial viability remained secure thanks to its prominent international donors and German financial regulatory supervision

Local Security: All guarantee applications were checked against well-defined eligibility criteria developed in accordance with international best practices

Reliability: CGFT remained a reliable partner for its PFIs due to quick and uncomplicated payout mechanisms

Guaranteed MSME loans were disbursed by PFIs in Somoni (the Tajik currency) or US Dollars and ranged from USD 1,000 to USD 500,000 equivalent in value. CGFT guaranteed a significant proportion of the oustanding value of each loan and offered TA services to mitigate risk.

CGFT cooperated with seven banks and microfinance institutions, all of which maintain reputations as leading financial institutions in Tajikistan.

Founders of CGFT

Three of the most prominent European Development Finance Institutions invested in and supported CGFT in its credit guarantee and TA activities:

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a member of KFW Group

FMO – Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.

OeEB – Oesterreichische Entwicklungsbank AG

Photographer: Sukhrob Khasanov

Corporate Framework

CGFT was managed by LANDT GmbH, an international development finance company dedicated to setting up and operating credit guarantee funds and providing TA and development finance consulting.

Under LANDT’s management, CGFT was able to provide a diversified range of customer-oriented credit products and optimized risk management to PFIs. These institutions were then able to expand their credit operations to reach new business groups facing barriers to their access to finance and help their Tajik MSME clients realize their full growth potential.


The institutional profile of CGFT provides detailed information about the context of Tajikistan, set-up, achievements and outlook of the fund.

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