Against the backdrop of the Tashkent International Investors Forum, the European Bank for Reconstruction and Development (EBRD) President Odile Renaud-Basso spoke with Daryo’s Tawney Kruger shedding light on the Bank's significant investments in Uzbekistan and reaffirmed EBRD's continued commitment to supporting the country's ambitious reform agenda under President Mirziyoyev.
Renaud-Basso emphasized the strategic importance of Uzbekistan within the EBRD’s investment portfolio, noting that the Bank has consistently allocated between $700-800mn annually, making Uzbekistan one of EBRD's top six countries for investment. This substantial funding, 70% of which primarily targets the private sector and the burgeoning green sector .
“Uzbekistan is a very important country for EBRD,” she said, underscoring its role in regional stability and development.
Supporting the Reform Agenda
The EBRD President highlighted the Bank’s role in supporting various sectors, including privatization, subsoil mining laws, and capital market development. EBRD’s support extends beyond financing to include technical cooperation, particularly aimed at policy reforms that align with the government's priorities. “We discussed which priority, what are his plans, and we also supported a number of reforms, not only with financing but also technical cooperation,” Renaud-Basso noted.
She emphasized Uzbekistan's demographic strengths, stating that "Uzbekistan has the largest population in Central Asia and exhibits dynamic demographic growth. This presents substantial potential."
Additionally, she highlighted Uzbekistan's growing regional role, pointing out that "enhanced cooperation among Central Asian countries further strengthens its investment attractiveness."
A notable project is the transformation and planned privatization of Asaka Bank. EBRD signed a principle agreement with the Uzbek Deputy Prime Minister to support changes in governance and facilitate a potential pre-IPO investment.
Renewable Energy Initiatives
Renaud-Basso praised Uzbekistan's renewable energy ambitions, which have been accelerated by substantial reforms. She explained how the country’s pursuit of solar and wind energy is attracting significant private investment and contributing to energy security. “One sector which is changing very quickly is the energy sector, with a big ambition in renewable energy,” she stated.
The Bank is investing in projects such as battery storage and green hydrogen while helping the country develop its renewable potential, which includes a goal of achieving 25% of renewable energy capacity by 2030.
"We have also started to finance battery storage, and are working on green hydrogen. So the country is very at the forefront of these evolutions," Renaud-Basso commented.
Middle Corridor Connectivity
The Middle Corridor initiative, a key infrastructure project that aims to strengthen trade links between Europe and Central Asia, was also a focal point of discussion. The EBRD President emphasized the corridor’s strategic importance, with the Bank committing $1.5bn to support critical infrastructure that enhances connectivity in the region.
“In the new geopolitical environment in which we live, it’s very important to develop connectivity with Europe… this corridor is very strategic,” she explained, noting that improved connectivity will enable Uzbekistan to export goods more effectively and bolster its own manufacturing base.
When asked to identify key opportunities that Uzbekistan should leverage in relation to the Middle Corridor, EBRD President Odile Renaud-Basso emphasized the importance of enhancing the nation's export capacity. "Uzbekistan is developing green energy and has a strong manufacturing base, but as a landlocked country, it needs to improve connectivity," she explained. "Enhancing this connectivity and capacity to export to Europe or neighboring regions will significantly benefit the country's economic development."
Private Sector and Gender Equality
Renaud-Basso highlighted the crucial role of the private sector, particularly small businesses, in job creation and economic growth. The EBRD actively supports diverse business segments through various financing initiatives, particularly focusing on women-led businesses.
“To create jobs, you need the private sector. And particularly small businesses, because this is where job creation is the most dynamic,” she explained.
When asked about her advice for women in business, she encouraged them to be ambitious and proactive. "They should be ambitious, really want to participate in the life of the country and engage and don't hesitate to take initiative and to take risks."
With an eye on long-term partnerships, Renaud-Basso envisions a strategic and growing relationship between the EBRD and Uzbekistan. The Bank’s efforts aim to promote sustainable growth, energy security, and economic diversification while ensuring inclusivity in all sectors. As Uzbekistan continues its reform journey, EBRD stands ready to support its ambitions with a comprehensive approach.
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