BAKU, Azerbaijan, October 29. The European Bank
for Reconstruction and Development (EBRD) plans to provide up to
$25 million in financing to Uzbekistan’s Davr Bank to expand
lending to young entrepreneurs and small businesses.
According to the EBRD, at least one-third of the financing will
be allocated to women-led companies.
The senior loan will be provided under its Youth in Business
(YiB) program for Central Asia, which supports micro, small and
medium-sized enterprises (MSMEs) owned or led by entrepreneurs
under the age of 35.
The financing will be provided in U.S. dollars or through a
synthetic soum structure, enabling Davr Bank to extend funding to
eligible businesses in Uzbekistan, the EBRD said.
The bank will also focus on small businesses operating in rural
areas, expanding access to financing for young entrepreneurs beyond
the capital.
In addition to financing, eligible borrowers will be able to
access training, advisory support and other non-financial services
through the EBRD’s Advice for Small Businesses program. These
services aim to help entrepreneurs strengthen business management,
develop their operations and improve their growth prospects.
More than 26% of Uzbekistan’s population is aged 30 or younger,
according to government data cited by the EBRD. The country’s young
population represents a growing potential workforce, while
expanding access to financing and business support remains
important for creating employment and developing private
enterprise.
The project is also expected to help Davr Bank strengthen its
products and systems for serving young entrepreneurs and expand its
outreach to youth-led businesses beyond major urban centers.
The initiative forms part of the EBRD’s broader efforts to
support small-business development and improve access to finance in
Uzbekistan.
The EBRD has invested nearly $7.3 billion in Uzbekistan through
219 projects, with most of its financing directed toward supporting
private-sector development.
