Small and medium enterprises (SMEs) in Uzbekistan and Kyrgyzstan will gain more access to long-term financing following IFC’s commitment of up to $10 million to Highland Central Asia Fund II. The investment will support job creation, private sector growth, and the development of the region’s private equity market, said IFC, a member of the World Bank Group.
SMEs are a backbone of employment in Central Asia, accounting for a significant share of private sector jobs and playing a vital role in sustaining local economies. By expanding financing for these businesses, the initiative directly enhances job opportunities and economic resilience across the region.
Highland Central Asia Fund II is currently the only institutional private equity fund active in both Uzbekistan and Kyrgyzstan. With a target size is $75 million, the fund will invest in 10–15 SMEs across sectors such as healthcare, pharmaceuticals, food and beverage, hospitality, consumer goods, construction materials, real estate, logistics, and retail, with a focus on improving productivity and competitiveness.
Over the past five years, private equity investments have been limited in both countries. Highland Capital’s first fund—the Highland Private Equity and Mezzanine Fund in the Kyrgyz Republic—was launched in 2018 with IFC support of $8 million. It invested $21 million in12 companies, helping create more than 900 jobs.
Eldan Usubakunov, co-founder of Highland Capital, said: “Highland Capital is committed to channeling investments into SMEs in Uzbekistan and the Kyrgyz Republic. Our strategic expansion to Uzbekistan marks a significant milestone, allowing us to strengthen our presence in Central Asia, grow the private equity ecosystem, and foster broader economic growth in both countries.”
IFC’s anchor investment enabled Highland Central Asia Fund II to reach its first close and lay the foundation for additional investment from other investors (including development finance institutions), helping to strengthen a nascent private equity ecosystem in two markets where access to risk capital remains limited.
“This investment addresses a critical financing gap for SMEs in Central Asia,” said Farid Fezoua, Global Director for Equity, Funds and Venture Capital at IFC. “By anchoring the fund, IFC is helping build the private equity ecosystem, mobilize additional investors, and support job creation across the region.”
