IFC and DAVR-BANK Partner on $40M Loan to Support Small Firms in Uzbekistan

The initiative is designed to close critical financing gaps for underserved entrepreneurs, with a strong emphasis on empowering women-led businesses that face disproportionate barriers to growth.

The International Finance Corporation (IFC) has signed a $40 million loan agreement with DAVR-BANK to expand access to finance for micro and small enterprises (MSEs) across Uzbekistan. The initiative is designed to close critical financing gaps for underserved entrepreneurs, with a strong emphasis on empowering women-led businesses that face disproportionate barriers to growth.

Expanding Access to Finance for Small Entrepreneurs

The financing package is composed of a $30 million loan from IFC’s own account and an additional $10 million mobilized from Invest in Visions GmbH, an impact investor specializing in micro and small enterprise lending. Together, the funds will support thousands of entrepreneurs, particularly those operating in underserved regions.

Significantly, 25 percent of the loan portfolio will be dedicated to women-led businesses, underscoring the project’s gender-inclusive approach.

Abdumajid Samadov, Chairman of DAVR-BANK’s Management Board, emphasized the transformative impact:

“This partnership with IFC will allow us to significantly expand our support for small businesses and women entrepreneurs, who are key drivers of innovation and economic resilience in Uzbekistan. By increasing access to finance, we are helping to unlock the potential of thousands of business owners across the country.”

Why MSEs Are Critical for Uzbekistan’s Growth

Micro and small enterprises represent the backbone of Uzbekistan’s economy, contributing substantially to employment, local economic activity, and innovation. Despite their importance, MSEs—particularly women-owned—often struggle with limited access to finance due to lack of collateral, insufficient banking history, or geographic constraints.

This lack of financial inclusion prevents many businesses from scaling up, creating jobs, and fully contributing to the country’s economic growth.

IFC’s Role in Strengthening Private Sector Development

The investment forms part of IFC’s MSME Finance Platform – Base of the Pyramid Envelope, which provides medium- and long-term loans to financial institutions to reach underserved groups. The platform focuses on extending credit to micro and small enterprises, informal businesses, and low-income households, helping them overcome barriers to financial access.

Alain Nounke, IFC’s Regional Industry Manager for the Financial Institutions Group in Central Asia and Türkiye, said:

“Supporting micro and small enterprises, especially those led by women, is central to IFC’s mission in Uzbekistan. Through our investment in DAVR-BANK, we aim to foster inclusive growth, create jobs, and strengthen the country’s private sector.”

Broader Impacts and Development Goals

This initiative aligns with Uzbekistan’s broader economic development strategy, which emphasizes private sector growth, job creation, and gender equality. By increasing lending to women entrepreneurs, the project not only enhances financial inclusion but also supports social empowerment, enabling women to become stronger contributors to household income and community development.

Moreover, the project is expected to:

• Stimulate entrepreneurship and innovation among small business owners.

• Provide sustainable livelihoods in rural and urban areas alike.

• Strengthen financial sector resilience by diversifying loan portfolios.

Looking Ahead

With Uzbekistan undergoing rapid reforms and modernizing its financial sector, the IFC-DAVR-BANK partnership sets a precedent for inclusive finance models that prioritize women entrepreneurs and smaller businesses. The loan agreement represents a practical step toward unlocking the potential of the country’s entrepreneurial class, helping to build a more dynamic and resilient economy.