OPEC Fund Supports Uzbekistan with $35 mln Loan to Boost Its Climate Resilience
The OPEC Fund for International Development has approved a $35 mln loan for Asaka Bank, one of Uzbekistan’s largest commercial banks, to expand financing for agriculture and climate-related projects. The agreement aims to improve food security and strengthen climate resilience by increasing financial support for small and medium-sized enterprises (SMEs) in the sector.
Support for agriculture and SMEs
Agriculture contributes 25% of Uzbekistan’s GDP and employs a significant portion of the workforce. However, the sector faces challenges such as water scarcity, extreme weather conditions, and limited access to finance. The funding will help small-scale farmers and agribusinesses secure financial resources to invest in modern technology, infrastructure, and market expansion.
Asaka Bank will on-lend the funds to SMEs, enabling them to improve productivity and adopt sustainable farming practices. This initiative aligns with Uzbekistan’s broader strategy to enhance agricultural efficiency while addressing climate-related risks.
Long-term partnership with Uzbekistan
The OPEC Fund has been engaged in Uzbekistan for 25 years, financing nearly 30 public and private sector projects with a total investment of $800 mln. Under a Country Partnership Framework signed in 2024, the fund has committed $500 mln in new financing to support sustainable development initiatives in Uzbekistan until 2029.
Asaka Bank, the fourth-largest commercial bank in Uzbekistan by assets and gross loans, plays a key role in financing economic development. The bank is majority state-owned and works with international financial institutions under the OPEC Fund’s risk-sharing program.
