VIENNA,11th March 2025 (WAM) -- The OPEC Fund for International Development (the OPEC Fund) is extending a US$35 million loan to Uzbekistan's State Joint-Stock Company Asaka Bank (Asaka Bank) to enhance food security and expand financing for climate action projects in the Central Asian country. The funding will help increase access to finance for agriculture and strengthen the bank's climate finance portfolio.

In a statement, Abdulhamid Alkhalifa, OPEC Fund President, said, "Our partnership with Asaka Bank supports two crucial priorities for Uzbekistan - ensuring food security and addressing climate change. Agriculture remains a cornerstone of the country's economy and targeted investments in sustainable practices will help smallholder farmers build resilience and boost productivity. The new financing reflects our commitment to fostering economic growth while driving climate action."

The statement added that agriculture is a key driver of Uzbekistan's economy, accounting for 25 percent of the country's GDP and also employing about a quarter of the workforce. As the sector faces challenges such as extreme weather events, water scarcity and limited access to finance, strengthening financial support for small-scale farmers can create far-reaching benefits.

Asaka Bank will on-lend the OPEC Fund's loan to small and medium-sized enterprises and agribusinesses, enabling them to access essential financing for growth. This will help farmers and rural enterprises secure critical services, adopt modern technology and expand market access - strengthening productivity and resilience across the sector.

The OPEC Fund has been a long-standing partner of Uzbekistan for 25 years, supporting nearly 30 public and private sector projects with a total loan volume of US$800 million to date. A Country Partnership Framework signed in 2024 earmarks US$500 million in new OPEC Fund financing to advance Uzbekistan's sustainable development agenda until 2029.