IFC committed and leveraged more than $1.6 bn in fiscal year 2023, its largest-ever investment in the Central Asia region. These funds were directed towards bolstering economic growth, improving regional connectivity, and strengthening climate resilience. During the period from July 1, 2022, to June 30, 2023, IFC also undertook significant initiatives to advance financial inclusion, pioneer innovative public-private partnership (PPP) ventures, and advocate for gender diversity. IFC's investments in Uzbekistan reached a milestone in FY23, with a total commitment of $1.568 bn, marking the highest investment level since its operations began in 1993.
Notable investments included:
Zarafshon Wind Power Project: IFC invested $49 mn in Uzbekistan's inaugural wind power project, the Zarafshon power plant, set to become operational in 2025. This project will significantly contribute to the country's renewable energy capacity and support its decarbonization efforts.
Syrdarya Thermal Power Plant: IFC provided a financing package of approximately $1 bn for a modern thermal power plant in the Syrdarya region. This project aims to meet the growing energy demand in Uzbekistan while aligning with its energy transition goals.
Investments in Kazakhstan:
IFC continued to support Kazakhstan's economic development and food security in FY23 with the following investments:
KazFoodProducts: IFC provided $15 mn to KazFoodProducts, the leading agribusiness group in Kazakhstan, to facilitate its growth, create jobs, and enhance food security in the region.
KMF Microfinance Organization: IFC extended a $20 mn loan to KMF, a prominent microfinance organization, benefiting 247,000 micro, small, and medium enterprises (MSMEs), particularly in remote areas.
Almaty Ring Road: IFC-supported construction of the Almaty Ring Road, Central Asia's first PPP project, was successfully completed, improving transit potential and reducing travel times.
Investments in the Kyrgyz Republic:
IFC's engagements in the Kyrgyz Republic during FY23 were focused on energy diversification, infrastructure development, and financial inclusion:
Solar Plant Project: Serving as a lead transaction advisor, IFC assisted the Kyrgyz government in structuring and tendering a 150-megawatt solar plant under the Scaling Solar program, contributing to energy diversification and renewable capacity growth.
Manas International Airport PPP: IFC collaborated with the Kyrgyz government to design a competitive tender for a PPP to invest in Manas International Airport's infrastructure, partnering with an established airport operator.
Financial Inclusion: IFC provided more than $35 mn to local financial institutions, enabling improved access to finance for women-owned microenterprises and micro-housing in rural areas, positively impacting nearly 200,000 low-income individuals.
Investments in Tajikistan:
In Tajikistan, IFC allocated $15 mn to support Imon International and Eskhata Bank, enabling them to provide financing to thousands of MSMEs across the country.
IFC remains steadfast in its commitment to supporting private sector development in Central Asia, with a continued focus on key sectors such as agribusiness, financial services, infrastructure, and manufacturing. Additionally, IFC is dedicated to promoting sustainability, climate change mitigation, and adaptation to address the region's evolving challenges.
IFC's investments and activities in Central Asia during FY23 have had a transformative impact on the region's economic development, energy diversification, financial inclusion, and infrastructure enhancement. These investments reflect IFC's dedication to fostering sustainable growth, creating jobs, and improving the lives of the people in Central Asia while addressing pressing global challenges.
Earlier Daryo reported that as of this month, IFC has pledged $500 mn in investments for Uzbekistan, which is undergoing a significant economic transformation as the most populous nation in Central Asia.
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