The International Fund for Agricultural Development (IFAD), the European Union (EU), and Hamkorbank have launched a new programme aimed at strengthening rural entrepreneurship and improving financial inclusion in Uzbekistan. The initiative targets nearly 4,000 households that receive remittances as well as migrant workers who have returned to their home communities. By supporting these groups, the programme seeks to help rural families transform financial support from abroad into sustainable economic opportunities.
A central feature of the initiative is a new remittance-based credit scoring model that recognizes money sent home by migrant workers and savings accumulated by returnees as evidence of creditworthiness. This approach helps address a major challenge faced by many rural residents who lack formal income documentation or credit history, preventing them from accessing loans through traditional banking systems. By using remittance income as proof of repayment capacity, the programme aims to expand access to formal financial services.
The initiative is co-financed by the European Union through the REMIT PRIME Central Asia Programme and is designed to turn remittances into productive investments and business opportunities. Officials involved in the programme highlight that recognizing remittances as a reliable income source can significantly improve financial inclusion for rural families while creating opportunities for entrepreneurship and economic resilience.
Hamkorbank, one of Uzbekistan’s largest banks, plays a key role in the programme due to its strong presence in rural areas and its large base of remittance clients. The bank serves around 900,000 remittance recipients—approximately 20 percent of the country’s market—and will help expand access to credit and financial services using the new scoring model.
Remittances are a crucial economic lifeline in Uzbekistan, reaching US$14.8 billion in 2024 and accounting for more than 10 percent of the country’s gross domestic product. Despite their importance, many rural communities and returning migrants struggle to access credit or business support, which often leads to informal employment or renewed migration. The programme aims to address these challenges and support the country’s National Development Strategy 2030, which prioritizes the economic reintegration of returning migrants.
In addition to financial services, the initiative will provide business development support and financial literacy training to 900 rural residents, with at least half of the participants being women. Around 100 participants will also receive individualized mentorship to help them establish or expand businesses in areas such as agriculture, agro-processing, transport, and rural services.
The programme builds on similar IFAD and EU initiatives in Tajikistan and Kyrgyzstan that focus on converting remittance flows into savings, investments, and climate-resilient rural development. Through a new lending product expected to channel approximately €4.5 million in tailored credit, the initiative will also generate insights to guide broader financial sector reforms in the region. Ultimately, the effort aims to strengthen rural economies by transforming remittances into long-term opportunities for entrepreneurship, livelihoods, and sustainable development.
