IFAD, EU and Hamkorbank Launch Programme to Turn Remittances into Rural Businesses in Uzbekistan

The International Fund for Agricultural Development, the European Union and Hamkorbank have launched a new initiative aimed at transforming remittances into business opportunities for rural families in Uzbekistan.

The programme targets nearly 4,000 remittance-receiving households and returning migrant workers, helping them access credit and develop small businesses in rural areas.

Under the initiative, remittances sent home by family members working abroad will be used as proof of income through a new credit-scoring model, allowing families without formal credit history to obtain loans.

Pedro de Vasconcelos, manager of IFAD’s Financing Facility for Remittances, said recognising remittances as reliable income could significantly expand access to finance for rural communities.

The project is co-financed by the EU through the REMIT PRIME Central Asia Programme, which aims to convert remittance flows into productive investments and sustainable livelihoods.

Uzbekistan receives substantial financial inflows from migrant workers abroad. According to project data, remittances reached $14.8 bn in 2024, accounting for more than 10% of the country’s GDP.

Alongside financial support, the programme will provide business and financial literacy training to 900 rural residents, at least half of them women. Another 100 participants will receive mentorship to help launch or expand businesses in sectors such as agriculture, agro-processing, transport and rural services.

Officials say the initiative supports Uzbekistan’s National Development Strategy 2030, which prioritizes economic reintegration for returning migrants and stronger rural entrepreneurship.

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