Japan strengthens its economic presence in Central Asia

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Uzbekistan and Japan have signed an Agreement on a credit allocation totaling 37 billion yen ($246.5 million) in Tashkent. The funds provided by Japan will be used for the development of Uzbekistan's economy and social sector, Inbusiness.kz reports.

The financing period will be a total of 30 years, with the first ten years serving as a grace period with an annual interest rate of 1.8%.

According to the Japan International Cooperation Agency (JICA), the credit extended by Japan will further support economic reforms, enhance stability, and promote social integration, particularly for socially vulnerable segments of the population.

The Japanese side believes that through support for strengthening market institutions, creating conditions for private sector growth, improving the management of state enterprises, and enhancing social integration and resilience, this credit will contribute to achieving several goals: eradicating poverty, promoting gender equality, providing decent employment opportunities for the people of Uzbekistan, and fostering economic growth.

In February, during a visit by a delegation of Uzbek industrialists to Japan, JICA announced a $200 million allocation to Uzbekistan for the implementation of livestock and leather industry support programs. Thus, the total support announced by Japan for various programs in Uzbekistan since the beginning of the year will be approximately $446.5 million.

Currently, China is the largest foreign investor in the Uzbekistan economy. During the first nine months of 2023, Chinese investments accounted for 24.5% of the total. Russia holds the second position in this ranking with 15.9%, and Saudi Arabia completes the top three investors in the Uzbekistan economy, contributing 7% of the total investment volume.


February 22, 2024