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Inclusive Financing and Intelligent Climate Development Project in the Livestock Sector

Project

This project is carried out with the support of the European Union

uzbekistan-agriculture
© Marie Tihon
Project start date
Status

Ongoing

Project duration
3 years
AFD financing amount
100 000 000 €
Country and region
Eurasia and Beyond, Uzbekistan
Location
Ouzbékistan
Type of financing
Loan
Beneficiaries
Republic of Uzbekistan
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The content of this project information sheet falls under the sole responsibility of the AFD and does not necessarily reflect the opinions of the European Union.

Responding to the Uzbek government’s request to develop the livestock sector, the project seeks to finance the agricultural stakeholders thanks to a range of investment instruments encouraging climate benefits, and the inclusion of small farmers, with a particular focus on women and young people.

Context

The Uzbek government relies on the agriculture sector, the largest job provider in the country, to develop its economy. Since 2017, it has been implementing livestock development projects financed by international finance institutions.

In this context, the National Agribusiness Strategy 2019-2030 objective is to «diversify production, improve land and water use, create a favorable environment for agribusiness and high value-added chains, support the development of cooperative relationships», with «the promotion of environmentally and climate-friendly practices».

Breeders have a special place in the agricultural landscape as small family farms, called “dehkan”, concentrate more than 80% of livestock farming on their plots. However, given the small herd size and an expansive product collection, the poverty rate remains high.

Description

The project is structured around three components:

  1. Financing of investments for agricultural and agro-industrial companies in the livestock sector to strengthen the capacity of the financial sector to provide climate financing, to support the creation of contractual arrangements for the inclusion of the most vulnerable producers in the value chain and to develop the upstream and downstream of livestock production chains to improve the carbon efficiency of finished products.
  2. Capacity building for access to credit for the livestock sector stakeholders in order to support production, productivity and value chain structuring of the sector in Uzbekistan, in an inclusive and efficient manner.
  3. Institutional strengthening of public policies allowing a better consideration of farmers and their needs through their participation in the development of advisory tools.

Impacts

The project will contribute to structural change in the agricultural economy by fostering a new model for livestock development based on the growth potential of small producers, who are more flexible and able to adopt climate-resilient practices.