02 June 2022

PROPARCO plans to triple its investments in Central Asia

PROPARCO (France) plans to triple its investments in Central Asian countries, including Uzbekistan, three times. This was stated by Deputy CEO of PROPARCO Djalal Khimdjee. 

PROPARCO is a subsidiary of Agence Française de Développement (AFD), specialized in the development of the private sector. The agency operates on all continents through a network of 85 offices.

PROPARCO delegation visited Uzbekistan from 30 to 31 May and held talks with representatives of the government of Uzbekistan, public and private organizations. The delegation included Djalal Khimdjee, Deputy General Director of PROPARCO, and Stephane Froissardey, Regional Director of PROPARCO.

In Uzbekistan, PROPARCO is involved in three projects. Within the framework of two projects, the company finances small businesses through commercial banks Hamkorbank (the amount of allocated funds is US$15 million) and Ipak Yuli (US$30 million).

PROPARCO also allocated US$21.8 million to Total for the construction of a solar power plant in Samarkand region.

Djalal Khimdjee, Deputy CEO of PROPARCO, noted that the company has been operating in Uzbekistan since 2015. At the same time, PROPARCO’s activities in the region have intensified over the past three years. According to him, over the years the company has mainly studied the market in order to understand its role in the country and how it can help Uzbekistan.

Djalal Khimdjee noted that PROPARCO has financed US$100 million worth of projects in Central Asia. At the same time, ¾ of these funds fall on the share of Uzbekistan.

He noted that in recent years Uzbekistan has made great strides in implementing reforms and the country is showing high growth rates. “We think that Uzbekistan has great potential. After negotiations with our local partners, we came to the conclusion that we have the potential to expand our presence in Uzbekistan”, he added.

In the next three years, PROPARCO plans to triple its investment in Central Asian countries, with the majority of the funds coming from Uzbekistan, Khimdjee.

At the moment, PROPARCO supports projects to create new jobs through the development of small and medium-sized businesses, as well as the development of renewable energy sources. We believe that through the support of the private sector, new jobs can be created, including for women, he added.

PROPARCO Deputy CEO said that one of the company’s priorities could be to improve the quality of life of the population through the development of basic services, address climate change issues, and improve the efficient use of water resources.

“We are ready to work with various partners and finance infrastructure projects, as well as work with local financial institutions to finance local enterprises”, Djalal Khimdjee.

The PROPARCO representative stressed that during the visit, the delegation held talks at the Ministry of Investment and Foreign Trade, the Ministry of Energy, the Agency for the Development of Public-Private Partnerships, as well as other public and private organizations, as well as international financial institutions.

Khimdjee noted that the parties discussed our activities, as well as the plans of departments and organizations, and accordingly considered the areas and directions of activity. We expressed our readiness to share our international experience. The talks also helped determine the priority areas for the country’s development.

And I’m glad that the priorities of the country and PROPARCO are reducing the impact on climate change, ensuring gender equality, and improving the living standards of the population.

Speaking about further reforms in Uzbekistan, Djalal Khimdjee noted that now the world is volatile and the Government of Uzbekistan should ensure the predictability of actions. Private investors need to know what the future holds for them.