Winters in the remote mountainous region of Gorno-Badakhshan in Tajikistan are long and very cold. Staying warm is expensive for the area’s 250,000 inhabitants. Employment opportunities are scarce and, unable to afford improvements to their homes, most people live in poorly-insulated properties in a state of disrepair.
Women-led micro-finance company Madina va Hamkoron is helping to tackle poverty in the region and protect residents from the cold by issuing small loans to pay for energy-saving home improvements.
The Warm Comfort loans are capped at USD$500 and repaid over 12 months at 2.5 per cent. Payments are made directly to specially trained local carpenters from the Zindagi co-operative, who assess the work required and manufacture products locally to keep costs down.
Up to January 2018, 960 loans had been issued for the installation of items such as thermally insulated doors and windows, and energy-efficient stoves, furnaces and water heaters. Households recoup the cost of their loan in savings within two years on average. The scheme improves customers’ health and wellbeing and provides much-needed work for more than 70 carpenters. It also helps protect the environment by drastically reducing the need for firewood. Demand for the loans is high and Madina va Hamkoron plans to raise additional capital so more people can benefit from a warmer, more comfortable home.
