Country: Uzbekistan
Themes: Strengthening the Business Enabling Environment, Expanding Access to Competitive Contestable Markets
Cross Cutting Themes: Gender, Digital
Anticipated Impact Areas: Quality Jobs, Private Investment
The Challenge
Uzbekistan has one of the fastest-growing adult populations in Europe and Central Asia (ECA), requiring the creation of over 400,000 jobs annually in the coming decade. However, job growth is constrained by a large state-owned enterprise (SOE) footprint, limited competition, barriers to firm growth, weak regional integration, and inefficient capital allocation.
While the government has launched important reforms—including participation in the ECA-wide FINGrow program to expand access to credit and equity, particularly for women and youth—further improvements are needed. Strengthening the business environment and ensuring competitive, contestable markets are essential to stimulate private sector demand and maximize the impact of financial sector investments.
Reducing state dominance, supporting competitive firm entry and growth, and ensuring a level playing field are critical to driving private sector–led growth and job creation.
The Mission
A C-JET grant supports reforms to improve the business environment at both national and local levels. It also provides advisory services to help reduce the state footprint and promote fair competition.
These reforms aim to:
- Improve regulatory quality and streamline business entry and operations
- Increase transparency and digitalization
- Reduce compliance costs for firms
- Enhance predictability of the business environment
Together with the accompanying FINGrow lending operation (an IBRD/IFC/MIGA initiative with strong gender and climate focus), these efforts will:
- Expand demand for financial services
- Attract private investment
- Increase competitiveness
- Strengthen productivity
- Support job creation
By fostering a more open and competitive economy, Uzbekistan can unlock private sector investment, encourage entrepreneurship, and build a dynamic, job-generating market environment.