ASTANA, Kazakhstan, December 13. The European Bank for Reconstruction and Development (EBRD) launched a seven-year 200 million euros ($218 million) Youth in Business program in Central Asia, Trend reports.
As the bank noted, it is designed to provide better access to finance and relevant training to young entrepreneurs in the region, where up to one third of the population is aged between 18 and 34 years.
The Youth in Business program in Central Asia will target micro, small and medium-sized enterprises (MSMEs) led or owned by young individuals under the age of 35.
The EBRD’s investment will be complemented by a package of up to 30 million euros consisting of grants and concessional co-financing to stimulate inclusive lending and youth entrepreneurship.
It is expected that the first loan agreements will include: a loan of up to $10 million to Uzbekistan’s largest private bank Hamkorbank, a loan of up to $8 million to Shinhan Bank Kazakhstan, a loan of up to $4 million to Mongolia’s leading micro lender Transcapital, and a loan of up to $2 million to Kazakhstan-based microfinancial organization Arnur Credit.
A market assessment conducted by the EBRD in the region reveals that while many young people across Central Asia have a strong entrepreneurial mindset, very few have access to equal economic opportunities. Only around 10 percent of them have access to necessary training and professional expertise.
As the Bank explains, this is very important for Central Asia, where MSMEs account for almost half of total employment and contribute to almost 40 percent of regional GDP.
Grant support and concessional finance to the program is provided by the government of Kazakhstan, the Small Business Impact Fund and the European Union.
The European Bank for Reconstruction and Development's (EBRD) current project portfolio in Kazakhstan reaches 2.8 billion euros as of October 31, 2023, based on the implementation of 114 active portfolio projects.
Investments in sustainable infrastructure projects account for 70 percent of the overall portfolio (1.97 billion euros). The industry, commerce, and agribusiness sectors also benefit significantly from EBRD's investments, with projects worth approximately 689 million euros making up around 24 percent of the portfolio.
Furthermore, the EBRD's support for the financial sector of Kazakhstan, with investments in financial institutions comprising 5 percent of the portfolio, amounts to 148 million euros.