IFC Invests $50 Million to Boost Kyrgyz Republic's Food Retail

IFC said the project is expected to generate more than 22,000 jobs through the company's operations, suppliers, local farmers and related industries.

The International Finance Corporation (IFC) has announced a $50 million investment in Umai Group, the Kyrgyz Republic's largest modern grocery retailer, to strengthen food distribution, create jobs and improve access to affordable, quality food across the country. The financing will support the company's expansion plans while helping modernize the nation's retail and logistics sector.

The funding will allow Umai Group to build the Kyrgyz Republic's first centralized A-class grocery distribution centre, providing a more efficient system for storing and delivering food products across its growing network of supermarkets. The investment will also support the opening of new stores, particularly in underserved communities where access to modern grocery retail remains limited.

IFC said the project is expected to generate more than 22,000 jobs through the company's operations, suppliers, local farmers and related industries. The seven-year financing package also addresses a major gap in the country's financial market, where long-term loans of this scale for a single business are rarely available.

Expansion expected to strengthen local food supply chains

Umai Group currently operates 172 stores across the Kyrgyz Republic and plans to nearly double that number over the medium term. Company Chairman Rud Pedersen said the investment reflects confidence in Umai Group's business model, governance standards and leadership within the country's rapidly growing grocery retail industry. He said the financing will strengthen the company's ability to support its existing store network while providing the foundation for future expansion that can reach more communities throughout the country.

IFC Regional Manager for Manufacturing, Agribusiness and Services for Central Asia and Türkiye, Lukas Casey, said modern retail and logistics systems play an important role in making food more affordable and consistently available. He noted that stronger supply chains also create new opportunities for farmers, food producers and businesses beyond major urban centres.

The Kyrgyz Republic's grocery market remains largely informal, with fragmented supply chains and limited logistics infrastructure. IFC believes that expanding modern retail operations will reduce food losses, improve product quality and make distribution more efficient across the country.

Local farmers and sustainability also set to benefit

The investment is also expected to strengthen links between Umai Group and domestic agricultural producers. As the retailer expands its operations, it plans to increase purchases from local farmers and suppliers, creating more stable markets for agricultural products and supporting rural incomes.

Alongside the financing, IFC will work with Umai Group to improve its corporate governance, strengthen environmental and social standards and enhance energy efficiency across its operations. The partnership will also support the company in pursuing EDGE (Excellence in Design for Greater Efficiencies) certification, an internationally recognised standard for resource-efficient buildings.

By combining investment in modern logistics, retail expansion and sustainable business practices, the project aims to improve food availability, create employment and contribute to the Kyrgyz Republic's broader economic development while supporting local producers and consumers alike.