The Board of Directors of the European Bank for Reconstruction and Development approved a new 5-year strategy for Uzbekistan, the bank’s press service reported.

The EBRD’s approach to activities in Uzbekistan until 2029 will be based on the following areas:

•  supporting decarbonization, water efficiency and cleaner energy;
•  development of the private sector, promotion of employment, skills development, inclusion and transition to digital technologies;
•  improving economic governance, business climate and expanding infrastructure connectivity.

As part of the first priority, the EBRD intends to promote an increase in the share of renewable energy sources in total electricity production, with a particular focus on introducing low-carbon approaches and reducing methane emissions.

The Bank will support the commercialization and modernization of power grids, and will also allocate additional funds to modernize water supply, sewerage and irrigation facilities.

Under the second priority, the EBRD will expand its support to the private sector by providing finance to small and medium-sized enterprises, sharing risks through local partner banks and trade finance.

The Bank will focus on improving the energy efficiency of women- and youth-led businesses, and local small companies will continue to benefit from the EBRD's business advisory services.

The bank’s priorities are promoting the digitalization of the private sector, expanding e-commerce and developing capital markets.

In addition, the EBRD plans to help improve the management of state-owned enterprises and banks, and will also support their privatization through participation in pre-privatization activities and the provision of advice and financing to stimulate the use of public-private partnerships.

The Bank will promote dialogue between the state and business through the Foreign Investors Council under the President, which will increase the volume of foreign direct investment in the economy of Uzbekistan. In addition, the EBRD intends to help improve transport links, stimulate regional energy trade and remove trade barriers.

Uzbekistan has become the leading recipient of EBRD financing for four years in a row. In 2023, the republic raised more than $760 million.

To date, the bank has invested 4.28 billion euros in the country in 147 projects, directing most of the funds to support the private sector.