The World Bank has approved the allocation of a $100 million loan and a $5 million grant to support small and medium-sized enterprises (SMEs) in Uzbekistan. These funds will be implemented under the FINGROW project.
Within the framework of the project, businesses will be assisted in obtaining loans and attracting private investments. This initiative will be carried out by “The Entrepreneurship Development Company” JSC.
Through banks, microfinance institutions, and investors, the company will provide credit guarantees and help businesses attract capital. According to data, micro, small, and medium-sized enterprises (MSMEs) in Uzbekistan account for over 90% of all companies in the country.
This sector employs 75% of the total workforce and contributes 55% to the country’s GDP. However, many companies lack sufficient funds for development, with the majority lacking even basic bank accounts, and loans being accessible to only a small fraction of businesses.
The total credit demand of MSMEs is estimated at $13 billion, while the financial gap amounts to $6 billion. Access to financing is particularly challenging for women-led businesses.
Although women own one-third of the companies in the country, loans allocated to them account for only 14% of the total. For one in every four such businesses, the primary issue is the lack of access to financing.
By 2023, it is expected that this funding will enable nearly 7,000 enterprises, including 4,500 women- and youth-led businesses, to obtain loans. This is projected to help create approximately 100,000 new jobs.
Additionally, 70 rapidly growing companies will receive direct support for private investments and business expansion. Overall, an additional $500 million in private capital is planned to be attracted to the economy.
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