World Bank Document

Stimulating private investment and job creation in agribusiness

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 will contribute 

towards improvement of the overall efficiency of agriculture. To improve the overall efficiency 

of agriculture, private investment is needed to stimulate innovation, increase value added, and 

generate quality employment. Private agribusiness has the potential to lower production costs and 

to expand production of raw products into higher value-added activities that involve more skilled 

and technology-intensive production. For instance, private investment is indispensable to 

modernize the cotton ginning industry where there is a significant productivity gap, currently 

averaging 33 percent compared to 38-39 percent in other cotton-producing countries. Private 

investments in agro-production, agro-processing, and supply chain development supported by IFC 

are an opportunity to pilot private sector-led agricultural transformation by introducing market-led 

innovations in each of these areas. Introducing private investment would be the main driver to 

modernize Uzbekistan’s agriculture, especially cotton. Meanwhile, value-addition to farm outputs 

could generate additional income for producers and create jobs in textiles and agro-foods for local 

                                                           

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This objective also supports Focus Area 2: Agricultural Competitiveness and Cotton Sector Modernization 

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and regional markets. With much of the male labor force working abroad, many farms are managed 

by women and the recent growth of the agro-food industry is providing new job opportunities for 

women in rural areas.