Textile and knitwear exports from Uzbekistan are projected to hit $4bn in 2025, with goals set for further growth in the coming years. Recently, President Shavkat Mirziyoyev signed a decree aimed at developing processing chains in the textile, garment, and knitwear industries.
This strategic move is expected to boost the sector’s contribution to the national economy, with a target of $5bn in exports by 2026 and $7bn by 2027, with finished products accounting for 70% of the total.
A significant portion of this growth is expected to come from deliveries to Europe and the United States, which are projected to generate at least $500mn.
To achieve these goals, the government aims to integrate advanced technologies and design innovations into the industry. Additionally, efforts will focus on attracting global brands to Uzbekistan's textile sector, boosting product quality and enhancing its international market presence.
In the next three years, the plan is to attract $5bn in investment specifically for yarn processing. A key component of the strategy includes transferring duties on yarn and fabric exports to the Fund for Support of Industries. This fund will provide commercial banks with resources to issue foreign currency loans for entrepreneurs to purchase equipment for fabric and finished product production.
Loans for equipment purchases will be offered at an interest rate of 4% per annum for up to 7 years, with advance payments covering 15% of the cost. For 2025, $15mn will be allocated for these purposes, with the aim to use at least 80% of the revenues from duties starting from next year.
In addition to lending, the Chamber of Commerce and Industry and the Uztukimachiliksanoat Association will have the option to use funds for equity financing. The maximum share size will be 25%, and companies will be required to repurchase the shares at an estimated value within five years.
A key initiative under the new plan is the launch of the "Made in Uzbekistan" program. This $2mn initiative will focus on promoting local textiles and brands on global e-commerce platforms. Industry employees will be trained on how to navigate these sites, list products, and create and expand brands to increase global market presence.
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