WASHINGTON, December 15, 2025-The World Bank's Board of Executive Directors today approved a $100 million loan and a $5 million grant for Uzbekistan to implement the Access to Finance for Jobs and Growth Project (FINGROW). It will expand access to credit and private equity financing for capital-constrained micro, small, and medium enterprises (MSMEs).
In Uzbekistan, MSMEs account for over 90 percent of businesses, 75 percent of total employment, and around 55 percent of GDP. Although MSME lending has increased in recent years, businesses continue to face challenges that limit their access to capital and constrain enterprise growth potential, contribution to the economy, and job creation.
Over one-third of MSMEs lack bank accounts, and less than 30 percent of sales are conducted electronically. Access to credit remains low, with only 10 percent of small and 16 percent of medium enterprises reporting access to loans. The MSME credit demand is estimated at $13 billion, leaving a $6 billion shortfall.
Women-led businesses face even greater financing constraints: although they own nearly one-third of registered MSMEs, they receive only about 14 percent of MSME loans. As a result, 23 percent of women-led businesses cite access to finance as their primary obstacle, compared to 10 percent of male-led businesses. These disparities hinder the growth of women-led MSMEs and the economic potential of the country.
In Uzbekistan, MSMEs seeking to scale up their businesses are also interested in attracting private equity investments. Equity demand is estimated at $20-30 billion, compared to only $2 billion in combined committed capital from the three private equity funds currently operating in the country.
The World Bank-financed FINGROW Project will support the Entrepreneurship Development Company (EDC), operating under the Ministry of Economy and Finance, in addressing access to finance challenges. Dedicated and professionally managed EDC subsidiaries will work with banks, microfinance organizations, and private equity investors to provide loan guarantees and facilitate equity investments to competitive MSMEs.
"By driving financial innovation and strengthening institutions tasked with expanding access to capital and supporting private sector growth, the FINGROW Project is unlocking opportunities for high-growth businesses in Uzbekistan, fueling entrepreneurship, and creating more and better-paid jobs, including for women and youth," said Najy Benhassine, the World Bank Regional Director for Central Asia.
By 2030, project activities are expected to lead to around 7,000 MSMEs gaining access to credit financing, including 4,500 businesses led by women and youth. This support will enable beneficiary firms to generate 100,000 more and better-paid jobs, with women and young workers expected to occupy more than half of them.
In parallel, high-growth SMEs will receive support to rapidly expand their businesses through private equity investments and knowledge transfer, with a significant share led by women and youth.
EDC subsidiaries, in partnership with banks, microfinance organizations, and private investors, will mobilize an additional $500 million in private capital to provide credit and equity financing to a much larger number of MSMEs.
This project is part of the Access to Finance for Jobs and Growth (FINGROW) Program, a $4 billion World Bank Group regional initiative aimed at improving access to financial services and instruments for businesses across the Europe and Central Asia region, fostering private sector growth and creating 3.5 million jobs. Uzbekistan and Türkiye are the first countries in Europe and Central Asia to benefit from the FINGROW program support.
