Socio-Ecological Transformation of the Rural MSME Sector and Sustainable Financial Services in Armenia, Georgia, Tajikistan, Ukraine

Project term: 01.01.2023-30.09.2025

Our regional project unites countries which have followed different paths since gaining their independence. But they are connected by common experiences and similar challenges:

  • The countries are particularly vulnerable to the impacts of climate change.
  • People think and act short-term due to many transformation processes.
  • Income prospects in rural areas are lacking.

Promoting rural development and thinking consistently from a socio-ecological perspective – that is the core of the regional project.  It aims to improve access to a future-oriented, sustainable financial market for the population and MSMEs in rural areas and strengthen the sustainable use of demand-oriented financial services.

Financial institutions have enormous leverage in the transformation towards a green economy. The idea behind Green Finance is simple: Economy needs to be financed. If banks pay special attention to financing climate-friendly investments, they quickly drive change. At the same time, a green portfolio reduces the credit default risk of financial institutions due to extreme weather events or changing social norms. National banks at the regulatory level and insurance companies with far-sighted risk management under ESG aspects (Environment, Social, Governance) additionally promote this development. We accompany our project partners on their way to turning into a sustainable bank.

New ESG standards in the risk management of financial institutions mean new requirements for borrowers. Our target group – small and medium-sized businesses in rural areas – must be able to adapt to this. In practice-oriented training sessions developed together with our project partners, participants learn to see climate change primarily as an opportunity. By running their businesses sustainably, they strengthen their resilience to the impacts of climate change and explore new markets. However, ecological awareness is probably not the main reason for ecological transformation. Above all, investments in climate protection must pay off.

Financed by

Local Partners

» Central and National banks of the project countries
» Commercial banks and MFIs with a strategic focus on MSMEs in rural areas
» Ministry of Labour, Migration, and Employment (Tajikistan), Associations of entrepreneurs


By working on this project, we are contributing to the fulfillment of these Sustainable Development Goals (SDGs) in accordance with the 2030 Agenda:

German Sparkassenstiftung for International Cooperation
Regional Office Eastern Europe and Central Asia
Ilia Chavchavadze Avenue 47a
0179 Tbilisi, Georgia

Phone: +995 32 2224272

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