The International Finance Corporation (IFC) has committed up to $10 million to Highland Central Asia Fund II, a move aimed at increasing access to long-term financing for small and medium-sized enterprises (SMEs) in Uzbekistan and the Kyrgyz Republic.
The investment is expected to support private sector growth, job creation, and the development of the private equity market across Central Asia. Highland Central Asia Fund II, which targets a total fund size of $75 million, plans to invest in 10 to 15 SMEs operating in sectors such as healthcare, food and beverage, pharmaceuticals, logistics, retail, hospitality, construction materials, and real estate.
SMEs play a crucial role in the economies of Uzbekistan and the Kyrgyz Republic, contributing significantly to employment and local economic activity. However, access to growth capital and private equity financing remains limited in both countries, creating challenges for business expansion and competitiveness.
The new fund builds on the success of Highland Capital’s previous investment vehicle in the Kyrgyz Republic, which supported multiple businesses and contributed to the creation of hundreds of jobs. IFC’s latest commitment is expected to help attract additional investors while strengthening the region’s emerging private equity ecosystem.
In addition to providing capital, IFC will offer advisory support to enhance fund management practices, value creation strategies, and investment outcomes. Officials say the initiative addresses a critical financing gap and will help strengthen the resilience and growth potential of small and medium-sized businesses across Central Asia.
The investment aligns with IFC’s broader mission of supporting private sector development in emerging markets and expanding opportunities for sustainable economic growth in developing economies.
