ADB and Hamkorbank Partner to Boost Rural MSME Growth and Green Investment in Uzbekistan

$50 Million Loan to Drive Financial Inclusion, Women Empowerment, and Sustainable Development.

The Asian Development Bank (ADB) has partnered with Uzbekistan’s Hamkorbank to provide a 625 billion Uzbek sum loan (approximately $50 million) aimed at improving access to financing for rural micro, small, and medium-sized enterprises (MSMEs). This collaboration aligns with Uzbekistan’s economic reform goals by fostering entrepreneurship, supporting women-led businesses, and promoting green technology investments.

A significant portion of the loan will target MSMEs located outside Uzbekistan’s capital, Tashkent. This effort addresses the disparity in financial access between urban and rural areas, where limited financing options constrain economic growth. At least 20% of the funding will go to women-owned or led MSMEs, empowering female entrepreneurs who often face additional barriers such as limited access to financial education and management training.

Furthermore, 10% of the loan is earmarked for investments in green technologies, supporting Uzbekistan’s push towards a more sustainable and eco-friendly economy. This will help rural businesses adopt renewable energy solutions, energy-efficient equipment, and other environmentally friendly practices.

“ADB is committed to Uzbekistan’s inclusive economic development,” said Suzanne Gaboury, ADB Director General for Private Sector Operations. “This partnership with Hamkorbank will empower entrepreneurs, create jobs, and foster long-term, inclusive growth that benefits a wide cross-section of society, including women-led businesses. By supporting green technology investments, we are also contributing to Uzbekistan’s environmental resilience.”

Strengthening Uzbekistan’s MSME Sector

Uzbekistan’s MSMEs, which number nearly half a million, are the backbone of the national economy, contributing over 50% to the country’s GDP and providing employment for the majority of the workforce. Despite their critical role, these enterprises face significant challenges in accessing bank loans, especially in rural areas where financial infrastructure is less developed.

Hamkorbank, established in 1991, plays a pivotal role in bridging this gap. As Uzbekistan’s third-largest private bank, it has a robust rural presence, operating 50 branches, 150 service outlets, and various digital channels. The bank’s CEO, Bakhtiyorjon Juraev, emphasized the importance of the partnership:

“ADB’s financial support, especially given the scarcity of medium-term local currency financing in the market, will help meet the evolving needs of MSMEs. This collaboration underscores Hamkorbank’s commitment to supporting Uzbekistan’s economic reforms and development strategies, contributing to a more dynamic and resilient economy.”

Promoting Women Entrepreneurs and Green Innovation

One of the key objectives of the loan is to empower women entrepreneurs, who often face systemic barriers such as limited collateral, financial literacy, and access to business networks. Hamkorbank will collaborate with local organizations to provide training and mentorship programs for women-led MSMEs, ensuring they have the tools to succeed.

Additionally, the focus on green technology investments will help rural businesses reduce their carbon footprint while enhancing productivity. Projects eligible for funding include solar power installations, water-saving irrigation systems, and energy-efficient manufacturing equipment.

Supporting Economic Reforms and Long-Term Growth

The ADB loan is part of a broader strategy to support Uzbekistan’s economic reforms, which aim to diversify the economy, reduce reliance on state-owned enterprises, and encourage private sector development. By channeling resources to MSMEs, this partnership will stimulate local economies, create jobs, and improve living standards in rural areas.

Future Outlook

This collaboration sets the stage for further investments in Uzbekistan’s private sector. Hamkorbank plans to expand its outreach to underserved communities, leveraging the ADB’s support to innovate and grow its services.

The partnership also aligns with Uzbekistan’s national development priorities, which include enhancing financial inclusion, promoting gender equality, and advancing environmental sustainability. By addressing these critical areas, the ADB-Hamkorbank collaboration is poised to drive meaningful change in Uzbekistan’s economic landscape.