The World Bank’s Board of Executive Directors has approved a $100 million loan and a $5 million grant to Uzbekistan to implement the Access to Finance for Jobs and Growth Project (FINGROW), aimed at expanding credit and private equity financing for micro, small, and medium enterprises (MSMEs) that face capital constraints. MSMEs in Uzbekistan account for over 90 percent of businesses, 75 percent of employment, and around 55 percent of GDP, yet limited access to finance continues to hinder their growth potential, contribution to the economy, and job creation.
Despite increased MSME lending in recent years, more than one-third of these enterprises lack bank accounts, and less than 30 percent of sales are conducted electronically. Access to credit remains low, with only 10 percent of small and 16 percent of medium enterprises able to obtain loans. The total demand for MSME credit is estimated at $13 billion, leaving a shortfall of $6 billion. Women-led businesses face even greater challenges, receiving only about 14 percent of MSME loans despite owning nearly one-third of registered enterprises, with access to finance cited as a primary obstacle by 23 percent of women-led firms compared to 10 percent of male-led businesses.
In addition to loans, many MSMEs seek private equity to scale their businesses, with estimated demand of $20–30 billion, while current committed capital from existing private equity funds amounts to only $2 billion. The FINGROW Project will support the Entrepreneurship Development Company (EDC), under the Ministry of Economy and Finance, in addressing these financing gaps. EDC subsidiaries will work with banks, microfinance institutions, and private equity investors to provide loan guarantees, facilitate equity investments, and support high-growth competitive MSMEs.
By 2030, the project is expected to enable around 7,000 MSMEs to access credit financing, including 4,500 led by women and youth, creating an estimated 100,000 better-paid jobs, with women and young workers occupying more than half of these positions. High-growth SMEs will also benefit from private equity investments and knowledge transfer, while EDC subsidiaries, in collaboration with financial institutions and private investors, are projected to mobilize an additional $500 million in private capital to expand credit and equity financing to a wider range of MSMEs.
FINGROW is part of a broader $4 billion World Bank Group regional initiative designed to enhance access to financial services across Europe and Central Asia, stimulate private sector growth, and create 3.5 million jobs. Uzbekistan, along with Türkiye, is among the first countries in the region to benefit from this program, supporting both financial inclusion and economic development.
