The World Bank has approved a $100 million loan and a $5 million grant to Uzbekistan for the Access to Finance for Jobs and Growth Project (FINGROW). The project aims to increase access to credit and private equity financing for micro, small, and medium enterprises (MSMEs) in the country.
MSMEs make up more than 90 percent of businesses in Uzbekistan, account for 75 percent of employment, and contribute about 55 percent of the country's GDP. Despite some growth in lending to these businesses, many still struggle to secure the capital they need. More than one-third do not have bank accounts, less than 30 percent of their sales are electronic, and only a small percentage report having access to loans. There is an estimated $6 billion gap between MSME credit demand and available supply.
Women-led MSMEs face even greater challenges. Although they own nearly a third of registered MSMEs, they receive just 14 percent of MSME loans. Nearly a quarter of women-led businesses identify access to finance as their main obstacle.
The FINGROW Project will support the Entrepreneurship Development Company (EDC), which operates under Uzbekistan's Ministry of Economy and Finance. EDC subsidiaries will collaborate with banks, microfinance organizations, and private equity investors to provide loan guarantees and facilitate equity investments for competitive MSMEs.
“By driving financial innovation and strengthening institutions tasked with expanding access to capital and supporting private sector growth, the FINGROW Project is unlocking opportunities for high-growth businesses in Uzbekistan, fueling entrepreneurship, and creating more and better-paid jobs, including for women and youth,” said Najy Benhassine, the World Bank Regional Director for Central Asia.
By 2030, around 7,000 MSMEs—including approximately 4,500 led by women or youth—are expected to benefit from improved access to credit financing through this project. The support is projected to help beneficiary firms create 100,000 new jobs that pay better wages; more than half of these positions are expected to go to women or young workers.
High-growth SMEs will also receive assistance in expanding through private equity investments and knowledge transfer. EDC subsidiaries plan to mobilize an additional $500 million in private capital with partners.
This initiative is part of the larger FINGROW Program—a $4 billion regional effort by the World Bank Group—to improve financial services across Europe and Central Asia with the goal of creating 3.5 million jobs. Uzbekistan joins Türkiye as one of the first countries in the region participating in this program.