The new agreement is aimed at attracting investment and encouraging the introduction of new practices.
The International Finance Corporation (IFC) and the government of Uzbekistan signed an agreement to support the modernization of the chemical and fertilizer industries, the IFC press service reports.
The IFC noted that the chemical industry and the production of mineral fertilizers in Uzbekistan have enormous potential for growth, but reforms and private sector investments are needed to transform them into a modern industry that can meet the country’s needs and unleash its export potential.
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,” Georgina Baker, IFC Vice President for Europe, Central Asia, Latin America and the Caribbean, said.
As of May 1, 2021, the IFC investment portfolio in Uzbekistan amounted to $160 million. The organization’s advisory programs are aimed at helping 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 healthcare sectors.
