Uzbekistan and the German Development Bank (KfW) formalized an agreement to secure a loan of €23.5mn and a grant of €3mn for the third phase of the “Micro, Small and Medium Business Development” project on April 17. 

The agreement aims to enhance the competitiveness of small and medium-sized enterprises (SMEs) in Uzbekistan and provide them with the financial resources and modern knowledge necessary for sustainable growth.

The agreement was signed during a meeting between Jonas Ratfelder, regional manager for Eastern Europe, Caucasus, and Central Asia at KfW, and Ilhom Norqulov, First Deputy Minister of Economy and Finance of Uzbekistan, with the presence of other senior officials from both parties. The project’s main objective is to support the development of Uzbekistan’s SME sector, fostering economic growth and increasing employment opportunities.

During the discussions, the parties also explored opportunities for expanding cooperation in several key areas, including financial support for SMEs, agricultural and regional development, and the strengthening of capital and financial markets in Uzbekistan. The German Development Bank’s support aligns with its broader mission to provide financing for projects in sectors such as energy, climate, healthcare, education, and water, all aimed at supporting the United Nations Sustainable Development Goals (SDGs).

In addition to Ratfelder and Norqulov, the meeting was attended by Michael Wimmer, representative of the German Embassy in Uzbekistan, Andreas Schneider, head of KfW’s office in Uzbekistan, and other senior officials from Uzbekistan’s Ministry of Economy and Finance, including Timur Khusanov, Director of the Department for Analysis and Support of SME Development, and Bekhruz Karimov, Deputy Director of the State Debt Department.

The meeting concluded with both sides reaffirming their commitment to strengthen bilateral ties and expand the exchange of views on issues related to economic growth and business development.