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Uzbekistan

Uzbekistan SME Industrial Cooperation Fund 2026

Funding Amount
$50M (loans up to $10M, 10 years, 6-12% interest)

Uzbekistan's new $50 million SME Industrial Cooperation Fund, launching July 2026, provides concessional loans up to $10 million per project with 10-year terms at preferential 6% foreign currency or 12% local currency interest rates through commercial banks.

Program Overview

Announced in February 2026, this new fund receives $50 million from the Fund for Reconstruction and Development to finance concessional loans and subsidies for businesses in priority industrial sectors. Businesses can access preferential financing through commercial banks starting July 1, 2026. The fund targets industrial cooperation, SME growth, and priority sector development with significantly below-market interest rates.

Key Benefits

Concessional Loans: Up to $10 million per project with 10-year repayment terms.

Preferential Interest Rates: 6% per annum (foreign currency), 12% per annum (local currency) - significantly below market rates.

Subsidies: Fund includes subsidy component for priority industrial projects.

Regional Support: Entrepreneurs from remote regions compensated for part of loan through refinancing (1.5-5 billion soums).

Eligibility Requirements

Must be a business operating in priority industrial sectors (manufacturing, industrial cooperation, production).

Project size: up to $10 million per project.

Must meet commercial bank creditworthiness standards.

Remote region entrepreneurs eligible for additional refinancing compensation.

Application Process

  1. Contact Commercial Banks (From July 1, 2026): Reach out to participating commercial banks to inquire about SME Industrial Cooperation Fund financing.

  2. Prepare Documentation: Business plan, financial statements, industrial project details, incorporation documents, remote region proof (if applicable).

  3. Credit Evaluation: Bank assesses creditworthiness, industrial sector alignment, and project viability.

  4. Approval & Disbursement: Upon approval, receive concessional financing at 6-12% rates with 10-year terms plus applicable subsidies.

Contact Information

Participating Commercial Banks: Contact major Uzbekistan commercial banks for fund access (available from July 1, 2026).

Fund for Reconstruction and Development: Program sponsor providing $50M to SME Industrial Cooperation Fund.

Common Questions

Uzbekistan's SME Industrial Cooperation Fund provides financing and support to small and medium enterprises engaged in industrial production and manufacturing activities. The fund offers preferential loan terms, partial credit guarantees, and technical assistance to help SMEs modernize equipment, increase production capacity, and improve product quality. The programme aims to strengthen Uzbekistan's industrial base and promote import substitution through domestic manufacturing growth.

The fund prioritizes manufacturing sectors aligned with Uzbekistan's industrial development strategy including textiles and garments, food processing, building materials, leather goods, electrical equipment, and pharmaceutical production. Special attention is given to enterprises that create employment in regional areas outside Tashkent, contribute to export growth, and help reduce Uzbekistan's dependence on imported consumer goods through local production capabilities.

The Fund concentrates on manufacturing contributing to import substitution and export diversification: textiles, food processing, construction materials, pharmaceuticals, and electrical equipment. It encourages ventures with foreign industrial partnerships for technology transfer. Proposals reducing dependence on imported goods while creating regional employment receive enhanced evaluation scoring.

The Fund provides subsidized lending rates, extended repayment horizons, and grace periods calibrated to manufacturing timelines. Capital covers equipment, facility construction, working capital, and certifications. Collateral is more flexible than banking standards given the developmental mandate. Enterprises submit quarterly reports on production volumes, employment, and export revenue against milestones.

The fund prioritizes textile finishing equipment upgrades, leather tanning process automation, ceramic tile kiln efficiency improvements, and food preservation technology installations across Uzbekistan's industrial heartland. Beneficiaries receive technical diagnostics identifying bottleneck operations constraining throughput capacity. Equipment procurement specifications must demonstrate measurable productivity gains through reduced energy consumption per unit, decreased raw material wastage percentages, and improved dimensional accuracy tolerances. Metallurgical enterprises pursuing international quality certifications receive supplementary compliance documentation assistance.

The fund supports Uzbek manufacturers in obtaining international product certifications necessary for penetrating European, Turkish, and East Asian consumer markets. Export readiness assessments evaluate packaging standards compliance, phytosanitary documentation protocols, and customs harmonization requirements under Central Asian regional trade agreements. Logistics optimization consultancies identify multimodal transportation corridors combining rail freight through Kazakhstan with maritime shipping via Georgian Black Sea ports. Participation in international trade exhibitions receives partial sponsorship to establish buyer relationships.

References

  1. IT Park Uzbekistan. IT Park (2025). View source
  2. Uzbekistan Corporate Tax Incentives. PwC (2025). View source
  3. Startup Uzbekistan Portal. Government of Uzbekistan (2025). View source
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