ADB approves $300 million loan to expand inclusive finance and support women entrepreneurs in Uzbekistan

The Asian Development Bank (ADB) has approved a $300 million policy-based loan, of which $100 million is concessional, to help Uzbekistan broaden access to finance for micro, small, and medium-sized enterprises (MSMEs), particularly those led by women. The financing also aims to strengthen the country’s microfinance sector and support inclusive economic growth.

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The new operation, known as Subprogram 2 of the Inclusive Finance Sector Development Program, builds on the foundational reforms achieved under Subprogram 1, which focused on establishing a robust legal and institutional framework for inclusive finance. These earlier reforms included raising the maximum microloan size, updating microfinance regulations, adopting Islamic microfinance rules, and joining the Women Entrepreneurs Finance Code.

“ADB is proud to support Uzbekistan’s transition to a more inclusive and market-based financial system,” said ADB Country Director for Uzbekistan Kanokpan Lao-Araya. “This program will help unlock access to finance for self-employed individuals and microentrepreneurs, promote gender equality, and strengthen consumer protection in the financial sector.”

Under Subprogram 2, the government will introduce new policy actions to enhance consumer protection and modernize financial regulation. These include updating responsible lending guidelines, regulating emerging financial products such as “buy now, pay later,” and strengthening oversight of digital financial services. The program also advances gender-focused initiatives by supporting a gender equality policy for the financial sector, introducing gender-based lending quotas, and operationalizing sex-disaggregated data reporting to better track outcomes.

The program is guided by the findings of an assessment of the National Financial Inclusion Strategy (NFIS) 2021–2023, which showed that 60% of adults in Uzbekistan now hold an account at a formal financial institution – a significant increase attributed to the rapid growth of digital finance.

Another major component of the reform package is the structural transformation of the microfinance industry. Subprogram 2 enables the creation of deposit-taking microfinance banks, supported by a risk-based regulatory and supervisory framework designed to maintain financial stability. So far, two preliminary licenses have been issued to establish such banks.

The program is further supported by technical assistance to build institutional capacity and ensure the sustainability of reforms. Subprogram 2 forms part of a broader programmatic approach, with a proposed Subprogram 3 (2025–2027) expected to deepen implementation and strengthen institutional resilience across Uzbekistan’s financial sector.