EBRD encourages SMEs growth in Central Asia
EBRD and EU are fostering small business growth in Central Asia, a region that has been on the trading route between East and West for centuries, says the publication, placed at web-site of European Bank of Reconstruction and Development. The small and medium-sized enterprises (SMEs) are a key factor to boost sustainable economic growth in the Kyrgyz Republic, Tajikistan and Turkmenistan. That is why the EBRD offers a financing package of more than €42 million in loans to SMEs for this market segment in these countries, says the article. These loans are backed by more than €11.2 million in funds by the European Union (EU) to provide direct support to SMEs through risk-sharing and technical assistance. Many companies have already benefitted from this support. In Turkmenistan, local brewer Yager has benefitted from an increasing demand for its beer and brought a former brewery back into action in Ashgabat. Over the last three years the EBRD has helped the company to boost production by 50 % at its main site in Turkmenabad and to purchase distribution vans, fridges and equipment for its new brewery in Ashgabat. Moreover, Yager had procured a CO2 recovery system. This will help to recover all CO2 generated in the fermentation and heating process and reuse it for the beer production. In Khujand, Tajikistan’s second largest city, wood processing company Fortuna is located. The demand for timber products has risen in the country over the last few years. Therefore, the company decided to expand its activities from local to larger scale industrial production. With a US$900,000 loan, the company invested in automated wood processing equipment, such as automated sawing and splicing machines, calibrating machines, a matching centre with computerised numerical control and a wood drying chamber. Now company now offers a full range of different products: standard and custom-made doors, wooden window frames, parquets and moulding products. An EBRD loan helped Kyrgyz drinks producer “Bear Beer” to successfully expand its production, modernise the premises and install cutting-edge, climate-friendly technology. Besides financial support, EBRD has offered comprehensive support package. This includes crucial advice on how to develop their business – a programme funded in Central Asia by the EU, Switzerland and the Early Transition Countries Fund. The consulting is aimed at developing a business plan, introducing management information systems, strengthening quality control and enhancing financial reporting. There are many SMEs with very good growth potential in Central Asia, said Neil McKain, the EBRD’s Director for Central Asia. “We are helping them to realise it. This does not only include loans, but also the advice at crucial stages of their development – before, during and after they obtain finance”, he added. SMEs are key driving force for innovation and growth in Central Asia. By supporting them, the EU is contributing to job creation and economic growth in the whole region.
