To increase access to finance for small businesses and women entrepreneurs in Uzbekistan, IFC, a member of the World Bank Group, has signed an agreement with Hamkorbank, the country’s third largest private lender, to provide a loan of up to $50 million.
With 35 percent of the funding earmarked for women-run businesses, this initiative is part of IFC’s broader effort to strengthening Uzbekistan’s financial sector and empowering small-scale entrepreneurs, who often face significant challenges in securing the loans they need to expand their businesses.
Uzbekistan has made progress in improving access to capital, but according to the World Bank Enterprise Survey 2024, only 19 percent of small enterprises use credit.
“Uzbekistan’s MSEs are the backbone of the economy, driving job creation and innovation. However, access to finance remains a key challenge for these businesses,” said Bakhtiyorjon Juraev, Chairman of the Management Board of Hamkorbank. “Our long-term partnership with IFC has been helping bridge this gap, empowering local businesses to grow and thrive, while contributing to the country’s economic development.”
“This investment reflects IFC’s strong commitment to bolstering Uzbekistan’s financial sector and promoting inclusive growth,” said Alain Nounke, IFC’s Regional Industry Manager for Financial Institutions Group in Central Asia and Türkiye. “Through long-term financing and strategic advice, we’re helping Hamkorbank continue its vital work of funding local businesses, especially those owned by women, which are key drivers of jobs and economic progress.”
The financing is being provided under IFC’s MSME Finance Platform – Base of the Pyramid Envelope, which seeks to address financial inclusion gaps by providing medium- and long-term loans to eligible financial service providers, with a focus on on micro and small enterprises, informal enterprises, and low-income households.
IFC was the first international investor in Hamkorbank in 2001 and became the first foreign shareholder in 2010. During its long-standing partnership with Hamkorbank, IFC has provided Hamkorbank with more than $125 million in debt, equity and trade finance. IFC has also helped the bank develop risk management practices, build capacity to finance agri-businesses, and introduce international best practices in several areas, including corporate governance and human resources management.
