IFC Supports Smaller Businesses and Women Entrepreneurs in Uzbekistan

Tashkent, Uzbekistan, October 3, 2024—IFC has signed an agreement with Ipak Yuli Bank to provide a syndicated loan of up to $42 million, aimed at increasing access to financing for smaller businesses and women entrepreneurs across Uzbekistan. With 25 percent of the funding earmarked for women-run businesses, this initiative is part of IFC’s broader effort to drive inclusive economic growth and empower small-scale entrepreneurs, who often face significant challenges in securing the loans they need to expand their businesses.

The $42 million syndicated loan is the first tranche of a larger financing package totaling up to $72 million. This initial phase includes a $20 million loan from IFC’s own account and an additional $22 million mobilized from impact investors such as Invest in Visions and ILX Fund. The remaining $30 million of the financing package is expected to be committed by the end of 2024.

Micro, small, and medium enterprises (MSMEs) contribute more than 50 percent of Uzbekistan's gross domestic product, yet many struggle with limited access to financing. The credit gap facing these businesses is approximately $11.8 billion.

“Smaller businesses are the engine of economic growth, but too many—especially women-owned smaller businesses—struggle to access financing. Thanks to this collaboration with IFC, our bank will be able to extend its support to existing and new MSME customers, and especially women-led businesses, with affordable loans”, said Saidabror Saydakhmedov, Chairman of the Management Board of Ipak Yuli Bank.

The investment represents a continuation of IFC’s collaboration with Ipak Yuli Bank, a relationship that began in 2018. Since then, IFC has provided $20 million in financing to the bank to support small enterprises, including women-owned enterprises and micro and smaller businesses engaged in trade.

"IFC's loan to Ipak Yuli Bank aligns with our commitment to promote sustainable and inclusive economic growth in Uzbekistan. By supporting small businesses and women entrepreneurs, IFC aims to foster entrepreneurship, enabling companies to expand and create much-needed job opportunities," said Wiebke Schloemer, IFC Director for Türkiye and Central Asia.

In addition to the financing, IFC will provide strategic advisory support to Ipak Yuli Bank. This assistance will focus on helping the bank enhance its product and service offerings to better meet the needs of MSME clients, including women-owned MSMEs, and drive sustainable growth.

About Ipak Yuli Bank

Founded in 1990, Ipak Yuli Joint Stock Innovation Commercial Bank is a universal commercial bank in Uzbekistan. It offers a wide range of banking services to small businesses, entrepreneurs, and retail customers through a well-established network of 17 branches and 46 express centers across eight regions of Uzbekistan.