To bolster Uzbekistan's consumer goods market, the European Bank for Reconstruction and Development (EBRD) has extended a substantial loan to Star Group, a prominent local distributor and retailer. The loan, totaling up to $14mn (€13mn), is aimed at fueling Star Group's regional expansion efforts and facilitating the construction of an energy-efficient warehouse.
Star Group, recognized for its diverse portfolio encompassing consumer goods distribution and multi-brand beauty and personal care outlets in Tashkent, is set to leverage the EBRD funds to address its escalating working capital requirements.
Additionally, the financing will facilitate the company's regional expansion aspirations and facilitate the establishment of a cutting-edge, energy-efficient warehouse. A portion of the funds will also be allocated towards procuring electric vehicles, reinforcing Star Group's commitment to sustainable practices in its delivery operations.
The EBRD's support doesn't stop there; the project is further bolstered by a $82,000 (€76,300) grant from the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) program, financed by the Global Environment Facility. This injection of funds will contribute towards ensuring that the warehouse achieves EDGE certification, a testament to its efficient utilization of water and materials.
Integral to the project's ethos is Star Group's pledge to foster workplace inclusivity. The company has committed to increasing the representation of female employees within its workforce to a minimum of 45%, aligning with broader societal goals of gender parity and inclusivity.
The technical intricacies of the project are being fortified by the support of the Japan-Europe Cooperation Fund, underscoring the collaborative nature of international partnerships in driving economic development and sustainability initiatives.
Uzbekistan's prominence as a recipient of EBRD funding within Central Asia underscores the nation's evolving economic landscape and the conducive environment for private entrepreneurship. With the EBRD's investments totaling approximately €4.5bn across 155 projects within the country, Uzbekistan stands as a beacon of opportunity within the region, poised for sustained growth and development.
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