The European Bank for Reconstruction and Development (EBRD) has released its five-year 2024 to 2029 country strategy for Uzbekistan.

From 2018 to 2023, under the previous strategy, the EBRD committed over €3.4bn across 115 operations in Uzbekistan, focusing on key areas such as enhancing the private sector's role in the economy and promoting green energy solutions. Notable achievements include the implementation of over 230 small and medium sized enterprise (SME) advisory projects, substantial improvements in access to finance for SMEs and significant investments in renewable energy, including the co-financing of Uzbekistan's first two privately owned renewable energy projects.

However, the previous strategy period was not without its challenges. Frequent policy changes, limited institutional capacity and a lack of a proper public-private partnership (PPP) framework were among the major hurdles encountered. These challenges, alongside Uzbekistan’s progressive economic reforms and shift in foreign policy, have shaped the new strategy.

The 2024-2029 strategy sets forth ambitious goals, with a strong emphasis on environmental sustainability and decarbonisation, the EBRD says. This includes a focus on green cities, water efficiency and cleaner energy, alongside efforts to adapt to a fast-growing population and market reforms. Additionally, the strategy aims to address governance issues, improve transparency and support the effective use of PPP frameworks.

“The new EBRD strategy for Uzbekistan is not just a continuation, but an evolution that builds on the solid foundation laid in the past five years,” said an EBRD spokesperson. “We are committed to supporting Uzbekistan’s journey towards a more sustainable, technologically advanced, and well-governed future.”

The strategy also highlights the importance of digital transformation, with initiatives aimed at catalysing the information and communication technologies (ICT) industry's development and exports.

In 2023, the EBRD launched its StarVenture programme in Uzbekistan as part of the efforts to support the ICT sector and encourage entrepreneurship. In December, the EBRD commenced its Youth in Business programme in an effort to provide a boost to the country’s young population.

As Uzbekistan continues to navigate its path through economic reform and development, the EBRD's new strategy underscores the bank's role in supporting these efforts, the development bank says. With a clear focus on sustainability, digitalisation, and improved governance, the strategy sets a roadmap for Uzbekistan's continued growth and development in the coming years, it adds.

Uzbekistan was last year the leading recipient of EBRD funding in Central Asia for the fourth year running. To date, the bank has invested around €4.28bn in 147 projects across the country, most of which support private entrepreneurship and investment.