Asian development bank

Finance

adB’s financial operations in Uzbekistan support rural housing and small businesses.⁹⁷ this support merges with good governance and capacity development to increase access to public services and improved infrastructure.⁹⁸ Multi-finance facility projects involve several equally important sectors and are implemented through close engagement with participating national financial institutions (commercial banks).

Uzbekistan has a two-level banking system: at the upper level is the Central Bank, the main regulator of financial and monetary policy, and at the lower level are commercial banks and micro-credit organizations. By the end of 2017, 26 commercial banks—including 3 state banks, 5 banks with foreign capital, 11 JSC banks, and 7 private banks—were registered in Uzbekistan. In addition, foreign banks have six accredited representative offices in the country.⁹⁹ Under its multi-finance facility portfolio, adB collaborates with eight commercial banks, five of which implement corporate gender policies initiated under adB projects.

1. Developing Small and Medium Enterprise and Private Entrepreneurship

Overall productivity in Central and West asia remains low. Key barriers to private sector development include a lack of effective financial management skills, complicated bank procedures, high interest rates, and a lack of equity financing mechanisms.¹⁰⁰

Small and medium enterprises (SMes) have a predominant share of Uzbekistan’s gross domestic product (Gdp)—a share that has grown slowly, from 56.1% in 2014 to 56.9% in 2016. In January–June 2017, SMes accounted for 46% of Gdp and established more than 16,000 small businesses. Industry and construction had the largest number of SMes (34%).¹⁰¹ Further, the SMe sector is a leading formal employer in the national economy, accounting for 78.2% of all employed people in 2016. Women’s share of the total number of micro, small, and medium enterprise (MSMe) employees, including farm workers, also grew slowly, from 21.7% in 2014 to 22.5% in 2016. Uzbekistan has achieved near gender parity in large companies and nongovernment organizations (NGOs). the rate has been stable since 2014 and amounted to 49.5% in 2016.¹⁰²

the absolute numbers of women’s representation in SMes are impressive: “In 2015 more than 120,000 small businesses, more than 4,550 farms (though constituting only 5% of total farms)

⁹⁷ the definition for multi-sector in Country Operation Business Plan, Uzbekistan 2011-2013, which focuses on integrated rural development strategies, and aims to improve the quality of living in rural areas through improved infrastructure, housing, business and employment opportunities targeting middle- and lower-income families.
⁹⁸ adB. 2016. Country Operation Business Plan, Uzbekistan 2017-2019. Manila.
⁹⁹ UzBankNet. Commercial Banks of Uzbekistan. http://uzbank.net/combanki.php.
¹⁰⁰ adB. 2017. Promoting Inclusive Growth through Private Sector Development in Central and West Asia. Good Jobs for Inclusive Growth in Central and West Asia. Manila.
¹⁰¹ Uzbekistan Sputnik. Online edition. The Share of Small Business Enterprises in GDP of Uzbekistan. http://ru.sputniknews- uz.com/society/20160727/3446481.html
¹⁰² data provided by the State Committee on Statistics to adB in September–October 2017 for this CGa update. the state committee categorizes larger enterprises together with NGOs.
Mainstreaming Gender in ADB Operations, by Sector 35
are headed by women, showing effective results. Women entrepreneurs were issued loans of 1 trillion 255 billion sums, which is 130% higher as compared to the similar figure of 2014.”¹⁰³

the sector breakdown of women-led businesses is as follows: services (34%), trade (16%), nonfood production (16%), food production (9%), agricultural farms (5%), and other spheres (21%) (Figure 2).

1.