Tashkent, Uzbekistan (UzDaily.com) -- International Finance Corporation and the Government of Uzbekistan signed an agreement to support the modernization of the chemical industry and fertilizer production.

The chemical industry and the production of mineral fertilizers in Uzbekistan have huge potential for growth, but transforming them into a modern industry capable of meeting the country’s needs and unlocking its export potential requires reforms and private sector investment.

A new cooperation agreement between the International Finance Corporation (IFC), a member of the World Bank Group, and the Government of Uzbekistan aims to attract investment in the sector and encourage the adoption of sustainable practices.

“The government of Uzbekistan has initiated reforms aimed at sectors of transforming the chemical and producing fertilizer. The aim of the reforms is to modernize the outdated production and distribution of chemicals and fertilizers, encourage investment and create a competitive industry that will provide new highly skilled jobs and reduce the carbon footprint of Uzbekistan’s industry”, - said Timur Ishmetov, Minister of Finance of Uzbekistan.

Uzbekistan’s advantage is that it can use its own raw materials to produce a wide range of fertilizers, industrial and consumer goods. However, the industry, which is largely controlled by the state, suffers from a lack of investment, remains inefficient and consumes an excessive amount of resources. The project is aimed at eliminating inefficiencies in the sector through the necessary market reforms, reducing the role of the state, and creating a level playing field for private investors.

“Given its rich natural resources, Uzbekistan can become a major exporter of chemical products and fertilizers. Through progressive reforms and investments in modern skills and technologies, the chemical industry can play a catalytic role in the country’s economic development, ”said Georgina Baker, IFC vice president for Europe, Central Asia, Latin America, and the Caribbean. “Through this partnership, we strive to support the Government of Uzbekistan in modernizing the sector and attracting international companies to invest and introduce the latest solutions and best practices needed to create a sustainable chemical industry in the country”. 

Uzbekistan, the most populous country in Central Asia, is undergoing an unprecedented economic transformation. As of 1 May 2021, IFC’s investment portfolio in Uzbekistan amounted to 160 million dollars. IFC’s advisory programs aim to assist the Government of Uzbekistan in preparing for the privatization of state-owned banks, developing and diversifying the financial market, transforming the cotton sector, developing the chemical industry, and piloting public-private partnerships (PPPs) in the energy and health sectors.

IFC, part of the World Bank Group, is the largest global development assistance agency focusing on the private sector in emerging markets. IFC operates in over 100 countries, leveraging its capital, expertise, and influence to create markets and opportunities in developing countries. In the financial year 2020, IFC invested US$22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and accelerate shared prosperity.