Second Rural Enterprise Development Project
The development objective of the Second Rural Enterprise Development Project for Uzbekistan is to support the expansion of rural enterprise activity, investments, and job creation in regions supported by the project. The project comprises of three components. The first component, enterprise development will facilitate the establishment and growth of farms, agribusinesses, and rural enterprises in the targeted rural areas through the provision of technical support and business facilitation activities. It consists of following sub-components: (i) business incubation and mentorship; (ii) partnership and value chain development; (iii) climate smart and green technology demonstration; and (iv) women’s entrepreneurship development. The second component, access to finance will address key constraints to accessing finance faced by farmers, agribusinesses, and other beneficiaries engaged in agriculture and rural economic activities. It consists of following sub-components: (i) credit line for farmers, agribusinesses, and rural enterprises for climate-resilient investments; (ii) partial credit guarantees under the state fund for support of entrepreneurship; and (iii) technical assistance to participating financial institution (PFIs) and the state fund for entrepreneurship support. The third component, project management will support the implementation, management, monitoring and evaluation of the project.
Description
The development objective of the Second Rural Enterprise Development Project for Uzbekistan is to support the expansion of rural enterprise activity, investments, and job creation in regions supported by the project. The project comprises of three components. The first component, enterprise development will facilitate the establishment and growth of farms, agribusinesses, and rural enterprises in the targeted rural areas through the provision of technical support and business facilitation activities. It consists of following sub-components: (i) business incubation and mentorship; (ii) partnership and value chain development; (iii) climate smart and green technology demonstration; and (iv) women’s entrepreneurship development. The second component, access to finance will address key constraints to accessing finance faced by farmers, agribusinesses, and other beneficiaries engaged in agriculture and rural economic activities. It consists of following sub-components: (i) credit line for farmers, agribusinesses, and rural enterprises for climate-resilient investments; (ii) partial credit guarantees under the state fund for support of entrepreneurship; and (iii) technical assistance to participating financial institution (PFIs) and the state fund for entrepreneurship support. The third component, project management will support the implementation, management, monitoring and evaluation of the project.
Technology
Target
The primary beneficiaries are rural MSMEs, farmers, agribusinesses and rural entrepreneurs in Uzbekistan, including women- and youth-led enterprises. The project also engages public sector institutions and participating financial intermediaries involved in rural enterprise development and financing.
Business model
The project's total funding is USD 200 million; it is financed by International Bank for Reconstruction and Development and IDA Credit.
Impact
The project aims to strengthen rural enterprise development, improve access to finance and support job creation in Uzbekistan’s regions. Expected outcomes include increased enterprise activity, employment generation, and improved resilience of rural economic activities, subject to project implementation and evaluation. As an intermediate implementation result, 21 Business Incubation Hubs have been established to provide enterprise support services to rural entrepreneurs. Final development outcomes will be assessed through ongoing monitoring and evaluation during project implementation.
Partners
Agency for the Work of Mahallabay and Entrepreneurship Development; Ministry of Economic Development and Poverty Reduction; State Fund for Support of Entrepreneurship; World Bank; International Finance Corporation (IFC); International Fund for Agricultural Development (IFAD); Agence Française de Développement (AFD); United Nations Development Programme (UNDP); Asian Development Bank (ADB); European Union
Four Betters
Better environment
Better life
Better production
