Tashkent, Uzbekistan, July 20, 2022—To spur private sector growth and support micro, small, and medium enterprises (MSMEs), including those owned by women, IFC signed a new loan with Hamkorbank, Uzbekistan's largest private lender.
IFC will provide a $15 million loan to the bank, helping it expand its lending to MSMEs, with a quarter of the financing earmarked for women-owned businesses. This is IFC's second project in Uzbekistan under its Banking on Women (BOW) program, which has been providing financial and business solutions to women-led enterprises through financial institution partners. To date, the BOW program has mobilized and invested US$3.3 billion in financial institutions globally, specifically to finance women-led small and medium enterprises (SMEs).
The Women Entrepreneurs Opportunity Facility (WEOF) and the Women Entrepreneurs Finance Initiative (We-Fi) will provide additional blended finance support in the form of performance-based incentives to support Hamkorbank in providing women-owned businesses access to finance. WEOF is an initiative launched by IFC—in partnership with the Goldman Sachs Foundation—to help expand access to capital for women entrepreneurs in developing countries and demonstrate the commercial viability of investing in women.
"We need to empower female entrepreneurs through access to capital in order to facilitate their growth, particularly given the impact of COVID-19.", said Charlotte Keenan, Global Director of Goldman Sachs 10,000 Women. "We are pleased to support Hamkorbank as it expands lending to women-owned businesses in Uzbekistan."
Despite MSMEs making up 92 percent of the enterprises in Uzbekistan and providing 75 percent of jobs, many face challenges in accessing finance. According to the MSME Finance Gap Database, the MSME financing gap in Uzbekistan is about $11.8 billion, equivalent to 18 percent of the country's gross domestic product.
"The transaction is very important for Hamkorbank as it will expand our existing MSME banking franchise, while supporting women-owned businesses, which play an important role in Uzbekistan's economy," said Ikram Ibragimov, Chairman of the Supervisory Board of Hamkorbank. "We are delighted to be the first bank in Uzbekistan receiving access to IFC's Banking on Women program's financial and advisory solutions."
IFC will leverage its global expertise through the Banking on Women program to help Hamkorbank develop a strategy, targeted products, and marketing tools to increase its gender finance portfolio. The project is in line with IFC's country strategy for Uzbekistan, which focuses on expanding access to finance for MSMEs and women.
Cassandra Colbert, IFC Senior Manager, Central Asia, said, "By focusing on MSMEs and female entrepreneurs, IFC hopes to reduce the gap in financing for these two segments, where we see significant opportunities, promote private sector growth, and contribute to economic development in Uzbekistan."
IFC has provided Hamkorbank with more than $60 million in debt, equity and trade finance since 2001. IFC has also helped the bank develop risk management practices, build capacity to finance agri-businesses, and introduce international best practices in several areas, including corporate governance and human resources management.
For more information about Hamkorbank, please visit www.hamkorbank.uz.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About Goldman Sachs 10,000 Women
Goldman Sachs 10,000 Women is an initiative to foster economic growth by providing women entrepreneurs around the world with a business and management education, opportunities and access to capital to grow their businesses. The initiative has reached 10,000 women from over 200 countries through a network of over academic, nonprofit, and bank partners. In partnership with the International Finance Corporation (IFC), Goldman Sachs 10,000 Women launched the first of its kind global finance facility in 2014 to enable access to capital to more women entrepreneurs. And now, by leveraging technology the 10,000 Women curriculum is available online through Coursera, creating access to a business education in more corners of the world. For more information on Goldman Sachs' philanthropic investment in female entrepreneurs, visit https://www.goldmansachs.com/citizenship/10000women.
About We-Fi
The Women Entrepreneurs Finance Initiative (We-Fi) is a collaborative partnership among the 14 governments that have made financial contributions, six multilateral development banks that serve as implementing partners, and other public and private stakeholders. We-Fi was formally established in October 2017 as a financial intermediary fund hosted by the World Bank. We-Fi invests in programs and projects that help unlock billions of dollars in financing to address the full range of barriers facing women entrepreneurs—increasing access to finance, markets, technology, and mentoring, while strengthening policy, legal, and regulatory frameworks. As one of the We-Fi implementing partners, IFC supports private sector clients with investment and advisory services to expand financial services and market access for women-owned and women-led firms, as well as increasing the capacity of women entrepreneurs to run high-growth businesses. For more information, visit www.we-fi.org.
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