World Bank Approves $105m for Uzbekistan to Boost MSME Finance and Job Growth

The project aims to reduce long-standing financing barriers that have limited MSME growth, constrained job creation, and restricted the country’s economic potential.

The World Bank’s Board of Executive Directors has approved a $100 million loan and a $5 million grant to support Uzbekistan’s Access to Finance for Jobs and Growth Project (FINGROW)—a major new initiative designed to expand access to credit and private equity for the country’s micro, small, and medium enterprises (MSMEs).

The project aims to reduce long-standing financing barriers that have limited MSME growth, constrained job creation, and restricted the country’s economic potential.

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MSMEs: The Backbone of Uzbekistan’s Economy

In Uzbekistan:

• MSMEs represent 90% of all businesses

• Employ 75% of the population

• Generate 55% of national GDP

Despite their importance, MSMEs face significant challenges accessing the capital needed to grow:

• Over one-third do not have a bank account

• Fewer than 30% of sales are digital or electronic

• Only 10% of small and 16% of medium firms can access bank loans

• MSMEs require an estimated $13 billion in credit, but face a $6 billion financing gap

The constraints are even more severe for women-led MSMEs, which represent roughly one-third of registered enterprises but receive only 14% of MSME loans. Nearly one in four women-led firms cite financing as their top operational barrier.

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Addressing the Private Equity Gap

There is also rising interest among SMEs in seeking private equity to scale their operations. Yet:

• Equity demand is $20–30 billion

• Only $2 billion in total committed capital exists across the three private equity funds currently operating in Uzbekistan

This enormous gap limits innovation, business expansion, and the launch of high-growth ventures.

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How the FINGROW Project Will Work

The World Bank–financed initiative will strengthen the institutional capacity of the Entrepreneurship Development Company (EDC) under the Ministry of Economy and Finance. Newly created, professionally managed EDC subsidiaries will:

• Provide loan guarantees to MSMEs through banks and microfinance institutions

• Facilitate private equity investments in high-potential enterprises

• Improve coordination between government, lenders, and private investors

• Promote financing specifically targeted at women and youth-led businesses

According to Najy Benhassine, World Bank Regional Director for Central Asia:

“By driving financial innovation and strengthening institutions tasked with expanding access to capital, the FINGROW Project is unlocking opportunities for high-growth businesses in Uzbekistan—fueling entrepreneurship and creating more and better-paid jobs, including for women and youth.”

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Expected Results by 2030

The project is projected to deliver far-reaching economic and social benefits:

Expanded Access to Finance

• 7,000 MSMEs will gain access to loans

• 4,500 of these will be women and youth-led businesses

Job Creation

• 100,000 new and better-paid jobs expected

• More than 50% anticipated to be filled by women and young people

Private Equity Development

• Up to 70 high-growth SMEs will receive equity financing and technical support

• A substantial share will be led by women or youth entrepreneurs

Mobilizing Private Capital

• EDC subsidiaries, partnering with banks and investors, will catalyze $500 million in additional private financing, enabling significantly more MSMEs to access credit or equity capital.

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Part of a Wider Regional Program

Uzbekistan’s project forms part of the broader $4 billion FINGROW Program, a major World Bank Group regional initiative designed to:

• Expand access to financial services for MSMEs

• Accelerate enterprise growth

• Support private sector development

• Create 3.5 million jobs across Europe and Central Asia

Along with Türkiye, Uzbekistan is among the first beneficiaries of this program in the region.