EBRD Provides $45 Million in Loans to Uzbekistan Businesses

The European Bank for Reconstruction and Development is deploying $45 million in financing to support private-sector growth in Uzbekistan through two separate initiatives. In a loan of up to $25 million provided to Davr Bank, the bank is targeting micro, small, and medium-sized enterprises led by individuals under 35. This funding, part of the Youth in Business programme, requires that at least 30 per cent of funds go to women-led businesses, with a specific focus on rural areas.

Additionally, the bank is providing up to $20 million to Star Group to strengthen working capital and expand its beauty retail chain in Tashkent and Samarkand. This financing will be distributed across four entities: Support Samarqand, Bloomshop, Star Distribution, and Star FMCG. To support this expansion, the bank and the Japan-EBRD Cooperation Fund are providing grants for a corporate governance action plan and a mentorship program for female staff.

These investments contribute to a total of nearly $7.3 billion the bank has invested in Uzbekistan across 219 projects. The initiatives aim to address local economic needs, including job creation for a population where more than 26 per cent of citizens are aged 30 or under.