Uzbekistan to receive €26.5 million from KfW Bank for development of small and medium-sized businesses

On April 21, 2025, the Republic of Uzbekistan and the German Development Bank KfW signed an agreement on providing financial support in the amount of 26.5 million euros aimed at developing small and medium-sized businesses. The financial package consists of a loan of 23.5 million euros and a grant of 3 million euros.

Under the terms of the agreement, at least 50 percent of credit resources will be allocated to companies operating in rural areas. Special attention will be paid to projects implemented by women entrepreneurs, reflecting the desire to create a more inclusive and sustainable business environment.

Financing will be provided through Uzbek banks, which will serve as intermediaries in the implementation of support programs. These funds will allow small and medium-sized enterprises to gain access to the necessary resources to expand their businesses, modernize production facilities and create new jobs, especially in regions with limited economic opportunities.

Cooperation with KfW has become another step in strengthening economic ties between Uzbekistan and Germany, as well as a confirmation of confidence in the country's ongoing reforms in the field of private sector development. Support for small and medium-sized businesses is considered as one of the priorities of the state economic policy aimed at stimulating entrepreneurial activity and improving the standard of living of the population.