Since 2007, the FG Vavilon has developed a country-wide network, servicing about 500 automated self-service terminals and overseeing about 1,500 dealers providing vendor payment services using hand-held mobile devices.

This EBRD financing will help Vavilon put 550 new payment terminals into operation in major cities across southern Tajikistan, expanding its share in Tajikistan’s fast-growing electronic payment services market valued at about US$ 155 million a year.

With Tajikistan lagging behind Russia, Kazakhstan and Ukraine where annual per capita spending through instant electronic payment terminals amounts to US$ 154, US$ 108 and US$ 87 respectively, the country’s electronic payment processing market is believed to have a significant development potential currently standing at around US$ 21.

“The investment is part of the EBRD’s wider approach to assist the country in developing its services sector, and the EBRD’s first equity investment in a private Tajik business outside of the banking sector. It brings innovation and demonstrates that privately-owned companies with sound managerial practices and good governance record in Tajikistan are able to attract financing from the international financial institutions. Most crucially, the users of the FG Vavilon’s automated payment machines will get faster and better services at more affordable prices,” said Ulf Hindstrom, Head of the EBRD Resident Office in Dushanbe.

”We are very excited about future long-term partnership with EBRD, which will lift our Company to a new level. We strongly believe that EBRD investment will not only help FG Vavilon to achieve its strategic goals, but will also have a broader positive effect on Tajikistan’s socio-economic development,” said Shukhrat Soliev, Chairman of the Board of FG Vavilon.

In Tajikistan, the EBRD focuses on promoting small private businesses, developing the banking sector, and improving critical infrastructure. The Bank is also supporting the development of agricultural sector, with a special emphasis on loans to farmers.

To date, the EBRD has committed over €110 million in various sectors of the Tajik economy, mobilising additional investments in excess of about €60 million.