Tashkent, Uzbekistan (UzDaily.com) -- On 28 April 2023, the International Islamic Trade and Finance Corporation (ITFC), part of the Islamic Development Bank (IsDB) group, held a round table on the theme: "Trade Connect Central Asia + Development Partners". The event was held as part of the 2nd Tashkent International Investment Forum (TIIF).

The round table, inaugurated by the Vice Prime Minister of the Republic of Uzbekistan Jamshid Khodjaev and the President of the IDB Muhammad Suleiman al-Jasir and jointly coordinated by ITFC and the Ministry of Investment, Industry and Trade of Uzbekistan, was attended by high-ranking officials from organizations such as the World Bank, UNDP, Asian Development Bank (ADB), UNECE and others.

Nazim Nordali, COO of ITFC, moderated the discussion on the Trade Connect Central Asia+ (TCCA+) program and presented the opportunities offered by the program. The event discussed areas of mutual cooperation, in particular, the development of trade between the corporation and enterprises of Uzbekistan. Participants will also talk about further prospects for cooperation.

ABOUT THE TRADE CONNECT CENTRAL ASIA+ PROGRAM

The Trade Connect Central Asia+ program is aimed at unlocking the potential of the private sector for cross-border trade and promoting the development of trade between the member countries of the Organization of Islamic Cooperation (OIC) in the Central Asian region and Azerbaijan.

As part of the Trade Connect Central Asia + program, over the next 5 years, it is planned to allocate 600 million US dollars.

The main directions of the program by sectors are:

Agricultural and agro-processed products

Petrochemicals

Plastic and metal products

Light industry

Mechanical equipment

Dairy products;

Fresh fruits and vegetables;

Cereals;

Semi-finished products from wheat and flour;

Vegetable oils;

Processed foods;

Beverages

Fertilizers;

Plastic in its original form

Packaging (plastic, wood and metal);

Metal products;

Building materials (cement, plastic, iron and steel)

Cotton and fabrics;

Textiles and clothing;

Hosiery and shoes

Piston engines;

Heating device;

Electric accumulators;

Vehicles/wagons and their parts

It is expected that the implementation of the program will achieve four global results.

The first result is an increase in quality and regularity of production, which in turn will make products more competitive and attractive in regional markets. For this, a production control infrastructure will be created in accordance with international standards, mutual recognition of regional conformity assessment bodies (CABs), laboratories and competent authorities will be achieved. In addition, modernization of production, processing and post-processing facilities and their processes will be carried out.

ITFC Chief Operating Officer Nazim Nordali said:

- “The second result will be the simplification of customs procedures to reduce the time and cost of crossing borders for regional trade. This result will increase the efficiency of regional border crossings for regional trade, attracting the private transport sector in the region to cooperate to reduce regional transport costs. In addition, Islamic trade finance instruments will be available and used in regional trade.”

- “We see the third point of results from the implementation of the program - the expansion of regional business interaction, which will open up business opportunities that exist in regional markets and within the OIC (GCC, Asia and Africa), - added Nazim Nordali, - Here we mean useful and relevant information on regional trade opportunities in the public domain, the creation of professional export-oriented companies in certain sectors of the economy to increase the potential of the region, as well as regular joint activities to promote exports held throughout the region.”

The fourth outcome of the Program will be increased regional competitiveness through trde policy reform and improved efficiency of Trade Support Institutions (TSIS). This requires private and public trade support institutions to provide a wide range of export support services. It is also important to strengthen government capacity (commonwealth countries) in the field of evidence-based policy development.

ABOUT ITFC ACTIVITIES IN UZBEKISTAN

ITFC started its activity in Uzbekistan in 2018 with a pilot line of financing in favor of one of the local banks. In 2019, ITFC signed a US$500 million framework agreement for a period of 4 years.

Since 2018, ITFC has committed US$478 million to the government and 12 local banks. The total amount of funding provided to the government of Uzbekistan, as of 1 January, 2023, is US$200 million. State funds were used to purchase raw materials for the production of cotton and wheat (2019-2020), as well as wheat (2022). The opportunities provided by local banks help to meet the needs of SMEs in financing imports and pre-export trade.

Through a range of financial mechanisms provided to local banks, ITFC also supports women’s entrepreneurship and the promotion of green finance, and organizes online and offline trade training for ministries and financial institutions.

Since 2022, ITFC has been implementing 2 integrated IFRS reporting trading solutions for two local banks: Turon Bank and Agrobank (a leading bank serving the critically important agricultural sector).

Since the corporation’s inception, ITFC’s total trade finance approvals for the CIS region are US$1.651 billion (as of 31 March 2023).

In addition to trade finance, ITFC provides support to governments, regulators and the private sector in export promotion, trade facilitation, Islamic trade finance development and capacity building. These steps are being taken to address food security issues in the region through technical assistance, including capacity building activities through trainings/workshops, as well as promoting the introduction of modern technologies in the management of food supplies and other strategic commodities.