Political Risks and Blended Finance: New Opportunities for Attracting Capital to Frontier Markets
The issue of attracting capital to developing markets was discussed at the Tashkent International Investment Forum, organized under the coordination of the Ministry of Investment, Industry and Trade of the Republic of Uzbekistan.
A panel session titled “Political Risks and Blended Finance: Attracting Capital to Frontier Markets” was moderated by Pedro Vargas David, Chairman of the Board of Directors of Euronews. Leading representatives of international financial institutions and the private sector gathered to discuss ways of stimulating global capital flows.
During the session, participants extensively examined multilateral guarantees, blended finance instruments, and the role and strategic importance of export credit agencies in attracting private capital to frontier markets.
The discussions stood out for being based on real transactions successfully implemented at the international level and on extensive practical experience.
Speakers included:
• Pedro Vargas David — Chairman of the Board of Directors of Euronews (Moderator)
• Jasur Karshibayev — Adviser to the Minister of Economy and Finance of Uzbekistan
• Irakli Elashvili — Deputy Chairman of the Management Board of Ipoteka Bank (OTP Group)
• Markus Wengrzik — Chief Executive Officer of AKA Bank
• Cristiana Portale — Head of SACE’s International Network for Central and Southern Europe and Ukraine
• H.E. Sheikh Mansour bin Khalifa Al Thani — Founder and Chairman of MBK Holding
• Marius Dan — CEO for Central Asia at Templeton Global Investments
• Francis Malige — Managing Director and Head of the Financial Institutions Business Group at the European Bank for Reconstruction and Development (EBRD)
Moderator Pedro Vargas David noted that investment inflows into Uzbekistan have increased significantly due to the reforms implemented in recent years. He emphasized that future priorities should focus not only on attracting investments but also on securing long-term investments in strategically important sectors such as infrastructure, industry, energy, logistics, and the digital economy.
Jasur Karshibayev, Adviser to the Minister of Economy and Finance of Uzbekistan, stated that the government aims to expand the country's economy to $240 billion by 2030 and achieve upper-middle-income status.
To reach this goal, Uzbekistan plans to continue economic and social reforms while further improving the business environment. It was also noted that international rating agencies have been steadily upgrading Uzbekistan’s credit ratings, reducing the cost of raising funds in global markets.
Francis Malige of the EBRD spoke about perceptions of risk in frontier markets. According to him, many investors initially view such markets as highly risky from afar. However, once they visit and assess conditions firsthand, they often discover far greater opportunities than expected.
Marius Dan, CEO for Central Asia at Templeton Global Investments, presented the results of the recent IPO of Uzbekistan’s National Investment Fund. The fund includes 13 strategically important state-owned companies, and the IPO was successfully launched simultaneously in London and Tashkent.
The offering became Uzbekistan’s first-ever international share placement, raising approximately $700 million. Investors included major global financial institutions such as BlackRock, Franklin Resources, and Redwheel.
Participants noted that Uzbekistan’s international standing continues to strengthen and that the country is now regarded as one of the most attractive frontier markets among developing economies.
“Today, Uzbekistan is one of the most attractive countries in the world in terms of the risk-return ratio for investors,” said Irakli Elashvili, Deputy Chairman of the Management Board of Ipoteka Bank (OTP Group).
Experts also emphasized the strategic importance of investing in talented young people, supporting their education at leading international institutions, and continuously enhancing skills based on advanced global experience and modern standards.
The ideas and recommendations presented during the session contributed to the development of practical approaches for increasing private capital inflows into frontier markets, reducing investment risks, and strengthening cooperation between the public and private sectors.
