EBRD - The Times Of Central Asia

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Uzbek Electronics Retailer Secures EBRD $10 Million Loan

On July 1, the European Bank for Reconstruction and Development (EBRD) announced its support to further develop retail standards and e-commerce in Uzbekistan by financing the expansion of one of the country’s leading consumer electronics and household appliances chains, CA-store (formerly Credit Asia). The loan of up to $10 million will finance the working capital required by CA-store for its expansion beyond the capital city of Tashkent. It is expected that in the coming years, the Uzbek retailer will extend its business to all the country’s major cities. The funds will also be used to develop CA-store’s online sales by introducing new e-commerce standards in Uzbekistan’s fast growing e-commerce market and offer online shopping to customers across the country. CA-store’s increased regional coverage will contribute to the reduction of the shadow economy by offering authentic goods and fully complying with national tax requirements. Integral to the project, is a commitment by CA-store to create equal and fair employment opportunities for staff.

EBRD EU Cooperation Drinking Water EIB investment

EU and Partner Banks Upgrade Water Supply in Cholpon-Ata, Kyrgyzstan

A new water intake facility has been launched in the Cholpon-Ata resort at Kyrgyzstan’s Lake Issyk-Kul thanks to a joint investment of EUR 5.1 million from the European Union, the European Investment Bank (EIB), and the European Bank for Reconstruction and Development (EBRD). The opening ceremony on 11 May was attended by the Chairman of the Cabinet of Ministers of the Kyrgyz Republic Akylbek Japarov. The European Union’s grant of EUR 3.1 million, combined with an EIB and EBRD investment loan of EUR 2.25 million, funded vital improvements to the city’s water supply system which had not been upgraded since it began operating in 1986. According to the EU Delegation to the Kyrgyz Republic, by helping eliminate the risk of water-borne diseases, the project has provided over 19,000 citizens of Cholpon-Ata with regular access to safe drinking water and sanitation services. To date, grants exceeding EUR 100 million from the EU have leveraged EUR 205 million investments to support Kyrgyzstan’s drinking water, solid waste management, and energy services, benefitting over 376,000 citizens in 14 cities and eight villages across the country.

Export/Import Finance EBRD Banking Economy

EBRD: Uzbekistan’s Economy Shows Stable Growth

Uzbekistan's economy will grow by 6.5% this year, and by 6% by 2025, according to a forecast published by the European Bank for Reconstruction and Development. This growth is expected due to investments in fixed capital and an increase in net exports. Central Asia's trade with Russia peaked in 2023 and played an important role in economic growth. Uzbekistan's GDP grew by 6% due to increased consumer spending driven by rising wages and credit expansion. The budget deficit amounted to 5.5%, against a forecast of 4%. According to the bank's analysts, in 2024 the budget deficit may be reduced due to energy subsidies, which will reduce government spending by about 1.5% of GDP. Economists also noted an increase in investment in the region in transportation, logistics, and export-oriented manufacturing. The economy was boosted by rising wages and real incomes, credit expansion, and intra-regional trade. "Sustained wage and real income growth, combined with a surge in foreign arrivals and the tourism sector, fueled a consumer boom, which was further supported by technological advances in consumer credit," the report states. Recent tariff reforms in Uzbekistan will also cut energy subsidies, which will reduce government spending by 1.5% of GDP, the bank said. At the same time, there are great prospects for foreign direct investment in privatization, but the chronic shortage of energy and water remains a negative factor. The decline in inflation to single-digit figures throughout the region has allowed regulators to start revising their monetary policy in favor of stimulating economic growth. The EBRD believes that the main public policy challenges in the region for 2024-2025 will be improving infrastructure and governance, tariff reforms, and harmonizing the use of common resources such as transport, water, and energy.

Education EBRD Kazakhstan Central Asia Economy Small Business

EBRD Launches New Training Program for Female Entrepreneurs in Kazakhstan

The European Bank for Reconstruction and Development's (EBRD) Women in Microbusiness training program is being launched in Kazakhstan to support women entrepreneurs facing social or economic obstacles in their business activities. Statistics show that whilst women manage 49 percent of all micro and small-sized businesses in Kazakhstan, their representation in medium and large business sectors is only 36 percent and 19 percent, respectively. Reporting on the initiative, Alma Kasymova, head of the EBRD's SME (small- and medium-sized enterprises) Program in Kazakhstan, stated, "Our main goal and mission is to empower women entrepreneurs to grow and develop their micro-enterprises through affordable and quality training. We are confident that this program will help participants to expand their competencies and open new perspectives in larger business segments." The training, conducted online in Kazakh and Russian, will run for five months and comprise six business modules in marketing, sales, finance, human resources, operational management, strategic planning, as well as automation and the use of artificial intelligence (AI). Participants will be able to enrol at any time convenient for them. . Welcoming its launch, an EBRD spokesperson announced, "This is the third implementation of the program -realized in collaboration with the training and consulting company Dialog . Previous projects allowed almost 1,500 women entrepreneurs to strengthen their skills and improve their businesses. "

roads EBRD Kazakhstan Uzbekistan Transport and Logistics

EBRD Funds Upgrade of Major Highway in Uzbekistan

On 2 May, the European Bank for Reconstruction and Development (EBRD) announced the allocation of a loan of up to $238 million (€224 million) towards the renovation of around 81 km of the 4R156 road, as well as the construction of a bridge across the Amu Darya River in the Khorezm region of western Uzbekistan. The road is a strategically important section of the Central Asia Regional Economic Cooperation Corridor 2a, linking the region’s administrative centre, Urgench, with the A380 road to Kazakhstan. The loan will transform the current single-carriageway category-II road into a dual-carriageway category-I road, and in addition, help upgrade supporting infrastructure along the 4R156 road. Once completed, the new road with its much-improved throughput capacity, will stimulate both trade and tourism in Khorezm. EBRD President Odile Renaud-Basso commented: “We are supporting this project because it meets our strategic objectives for Uzbekistan and Central Asia. It is also part of the global transport and logistics infrastructure solutions covered by the European Union’s (EU) Global Gateway initiative.” In January 2024, at the Investors Forum for EU-Central Asia Transport Connectivity in Brussels, the EBRD expressed its readiness to invest around €1.5 billion in Trans-Caspian Corridor-related infrastructure and associated transport solutions over the next 2-3 years.

Transport Tajikistan EBRD Environment Women-owned Enterprises

EBRD Helps Improve Dushanbe’s Environment and Support Tajikistan’s Banking Sector

During a visit by Odile Renaud-Basso, President of the European Bank for Reconstruction and Development to Tajikistan, on 29-30 April, the EBRD committed funds to upgrade Dushanbe's infrastructure, develop sustainable transportation solutions , and support for women’s entrepreneurship. The EBRD’s loan of up to €28.45 million will help improve transportation in the city’s riverside area through the reconstruction of roads and a bridge across the Varzob River, as well as the construction of dedicated bus and trolleybus lanes, and purpose-built routes for walking, cycling, electric wheelchairs etc. “We are very pleased to sign this project with the authorities of Dushanbe,” commented EBRD's president. “They have been committed to the green agenda ever since the city joined the EBRD Green Cities programme in 2019.” The Dushanbe Green City Action Plan was developed in collaboration with the EBRD to address environmental and development issues affecting the 800, 000 residents of Tajikistan’s largest municipality. Investment to promote a strategic shift from carbon-intensive, traditional transportation towards more eco-friendly, sustainable alternatives, aims to reduce annual carbon dioxide emissions by 37 percent. Joined by the Chairman of the National Bank of Tajikistan, Firdavs Nazrimad Tolibzoda, Renaud-Basso then signed a memorandum of understanding to support the country’s development of the Women Entrepreneurs Finance Code. Representing providers of financial services, regulators, development banks and other stakeholders, the WE Financial Code was formed to increase financial assistance to women-led micro, small and medium enterprises, and as a globally accepted multi-stakeholder approach, help eliminate constraints and gaps in financing women entrepreneurs in Tajikistan. The EBRD has now provided fresh funds and created new growth opportunities for women-owned and managed businesses in Tajikistan. Under the auspices of its Women in Business (WiB) programme for Central Asia, a loan of US$ 5 million (€4.6 million) has been granted to one of the country’s largest lenders, Bank Arvand, alongside technical assistance to help the bank promote women’s entrepreneurship and business activity. In addition, and under the EBRD’s Trade Facilitation Programme, a limited loan of US$ 1 million (€0.9 million) was offered to country’s leading microlenders, MDO HUMO, to help local clients both import goods, services, and equipment, and export their products.