Largest Foreign Investments in Tajikistan

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n October 2016, China finally overtook Russia in terms of its direct investment in the nation's economy, with a volume of accumulated direct investments of $1.016 billion USD – almost 30% of the entire amount of Tajikistan's direct accumulated investments. During the period of the report, the amount of accumulated direct investments made by Russia in the economy of Tajikistan reached a total of $985.5 million USD – a total of 27% the entire amount of Tajikistan's direct accumulated investments, which is 3% less than the amount invested by China in the country.

Tajikistan's Accumulated Direct Investments During 2016

The total amount of direct accumulated investments in the economy of Tajikistan had reached $3.08 billion USD by 1st October 2016, and during the first 9 months of that year, over $355 million USD came into the country from direct foreign investments. During that period, 71.8% of that total amount came from China – approximately $255 million USD. The second biggest foreign investor in Tajikistan's economy was Russia, having invested 9.9% (or $35 million USD) over that same period of time.

Following up after China and Russia was the United Kingdom in third place, having invested 7.4% of the total amount (or $26.2 million). The USA was placed fourth, having invested 3.5% of the total (or $12.3 million USD). France and Switzerland then followed up in fifth and sixth place having invested 3% ($10.5 million USD) and 2.4% ($8.6 million USD) respectively.

China's direct investment into the Tajikistan economy during 2015 cam to $273 million USD, which was 58% of the total, while 2015 saw Russia's direct investment in the nation's economy drop to $35 million USD – a 7.4% drop from the 30% it invested during 2010. Yet Russia still looks set to remain as one of the core elements of the country's economic survival, since thousands of labourers from Tajikistan earn their salaries there.

Plans to Attract Further Foreign Investment in the Tajik Economy

Female led businesses in Tajikistan face extra constraints due to the lack of any dedicated financing products and poor customer service. Women are much more likely to borrow money from their friends or family to start their business, and poor business skills as well as poor financial literacy also mean that women have a lack of exposure to knowledge networks and business opportunities, leading to female led businesses remaining at the micro business level.

The Agency for Statistics of Tajikistan is now planning to attract $200 million USD in direct investments from overseas. An FDI (or foreign direct investment) is an form of investment which controls ownership in a company in one country by another entity which is based in an entirely different country.

UAn FDI is therefore distinguished from foreign portfolio investment due to that direct control. The investment's origin has no impact on its FDI definition, and the investment can either be made by purchasing a business in the target country (or inorganically) or by expanding the operation of an existing company in that country (or organically).