World Bank Allocates US$100 Million to Support MSMEs and Job Creation in Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) — The Board of Executive Directors of the World Bank has approved a loan of US$100 million and a grant of US$5 million for the implementation in Uzbekistan of the “Access to Finance for Job Creation and Business Growth” (FINGROW) project.

The project aims to expand access for micro, small, and medium-sized enterprises (MSMEs) to credit resources and private investment. In Uzbekistan, MSMEs account for over 90% of all enterprises, provide 75% of total employment, and generate approximately 55% of GDP. Despite growth in lending volumes, enterprises continue to face limited access to capital, which constrains business development and job creation.

More than one-third of MSMEs do not have bank accounts, and less than 30% of their sales are conducted electronically. Only 10% of small enterprises and 16% of medium-sized enterprises have access to loans. The total demand for credit among MSMEs is estimated at US$13 billion, with a shortfall of around US$6 billion. Women-led enterprises face even greater constraints: they constitute nearly one-third of registered MSMEs but receive only about 14% of available credit.

The FINGROW project will provide support to the JSC “Entrepreneurship Development Company” under the Ministry of Economy and Finance. Its subsidiaries will work with banks, microfinance institutions, and investors to provide bank guarantees and facilitate the mobilization of private investments.

“By promoting the use of innovative financial services and strengthening institutions responsible for expanding access to capital, the FINGROW project opens new opportunities for fast-growing enterprises, fosters entrepreneurship, and supports the creation of better-paid jobs, including for women and youth,” said Nadji Benhasin, Regional Director of the World Bank for Central Asia.

By 2030, the project is expected to provide credit access to approximately 7,000 MSMEs, including 4,500 women- and youth-led enterprises, enabling the creation of around 100,000 new jobs. Additionally, support will be provided to up to 70 high-potential enterprises through private investment mobilization and knowledge transfer.

The subsidiaries of the JSC “Entrepreneurship Development Company” plan to further mobilize US$500 million of private capital to expand lending and investment in MSMEs.

The FINGROW project is part of a World Bank regional initiative worth US$4 billion in Europe and Central Asia, aimed at improving business access to financial services, stimulating private sector growth, and creating 3.5 million jobs. Uzbekistan and Turkey are the first countries in the region to receive support under this program.