Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Executive Summary

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sectors, as they have the potential to create more high-quality jobs and help 
boost national productivity. Tech-based SMEs should be a primary target 
to this end. The government’s support measures should include business 
development services for SMEs and business literacy programs for potential 
workers.
As Uzbekistan’s export structure evolves from a heavy reliance on cotton and 
natural resources to a more diverse range of processed products and services, 
new business opportunities for export-oriented SMEs are emerging, including 
as participants in global value chains. The government’s support measures 
should address promoting the internalization of SMEs and developing 
agricultural value chains, given the growth potential of agribusiness.
Although the credit market has been expanding in Uzbekistan, SMEs have 
yet to enjoy all the benefits of that expansion. Credit enhancement schemes 
supported by a credit bureau, a collateral registry, and credit guarantees 
should be created and strengthened to modernize the banking sector and 
enhance access to finance for SMEs. Developing a credit risk database is also
worth considering.
The nonbank finance industry and capital market have yet to become a viable 
substitute for bank lending for private businesses. Meanwhile, the demand 
for diversified financing options has been increasing among SMEs, especially 
for long-term finance. The government needs to prepare a road map for 
developing the nonbank finance industry and market-based instruments, so 
as to promote their balanced development alongside the banking sector. 
The advent of financial technology (“fintech”) has been rapidly changing 
the financial sector’s architecture. SMEs are considered a key beneficiary of 
fintech, given their limited access to traditional lending models. Online supply 
chain finance could be a pilot case of using digital finance. The government 
needs to promote financial inclusion and enhance financial and digital literacy 
for SMEs through establishing a comprehensive national strategy.
Given that the reform of state-owned enterprises can create more space for 
private businesses, the government needs to consider institutional reforms for 
SME development as part of ongoing state-owned enterprise reforms. That 
should include clarifying the role of state-owned banks. To facilitate internal 
coordination of SME development policies, the creation of a specialized SME 
agency is worth considering.