Reforms implemented in Uzbekistan’s agricultural sector in recent years have been aimed at the comprehensive modernization of the industry in line with international standards. Under current conditions, the transition from traditional livestock farming methods to resource-efficient and climate-resilient models has become not merely a relevant objective, but a necessity of the time. One of the most significant steps in this direction is the project “Financing Sustainable Development of the Livestock Sector,” implemented with the participation of the French Development Agency (AFD). Approved by Presidential Resolution No. RP-84 dated January 13, 2022, this initiative serves as a strategic “road map” for the transformation of the entire sector. With a total budget of €147 million, the program is designed to ensure a qualitative breakthrough in Uzbekistan’s livestock industry through 2026.
The financial architecture of the project is characterized by exceptional flexibility, allowing entrepreneurs to tailor investment decisions to specific production needs. The structure of fund allocation clearly confirms the strategic priority of the green economy. In particular, the first credit line, amounting to €65.9 million, is exclusively dedicated to financing climate-optimized and environmentally sustainable projects. Within this framework, beneficiaries assume significant responsibility while gaining access to unprecedented technological opportunities. Mandatory participation requirements include the implementation of energy-efficient bioclimatic solutions in construction, installation of drip and sprinkler irrigation systems, and advanced processing of livestock waste to minimize anthropogenic environmental impact.
In addition, the project has a broad social dimension. The second credit line, totaling €24 million, is focused on fostering cooperation among small dehkan farms, family-run enterprises, and household plot owners. The effectiveness of this mechanism is further strengthened by non-repayable grants from the European Union amounting to €11.5 million. These grants, allocated to cover part of investment costs, provide significant financial incentives for small businesses when acquiring and implementing advanced technologies.
A key strategic shift within the project has been the introduction of rational restrictions on the import of cattle. For many years, sectoral development was largely measured by the volume of imported pedigree livestock. However, under the AFD project, only €13.5 million of the total budget is allocated for this purpose, and the right to import is granted solely to farmers owning more than 50 head of cattle. This decision marks a departure from long-standing import dependency and shifts the focus toward developing domestic infrastructure. The project prioritizes not merely increasing livestock numbers, but building a comprehensive value chain for high-quality production across multiple areas, including poultry farming, fish farming, rabbit breeding, beekeeping, and horse breeding.
Financing mechanisms are implemented through four leading banks in the country: Xalq Banki, Microcreditbank, Business Development Bank, and Hamkorbank. The terms created for entrepreneurs are designed to ensure long-term project sustainability: loans are issued for up to 120 months (10 years), with a grace period of 36 months (3 years). At Xalq Banki, the interest rate is set at the Central Bank’s base rate plus 3 percent annually, while at the other partner banks the margin above the base rate is 5 percent. All loans are provided in the national currency — Uzbek soums.
Funds allocated under the project’s third component are directed toward comprehensive modernization of veterinary services and institutional development of the sector. This not only guarantees biological safety of products in the domestic market but also ensures compliance with stringent international certification standards, opening access to global export markets. The systemic approach, coordinated by the State Committee of Veterinary and Livestock Development, facilitates a profound transformation of the sector — from a traditional agrarian model to a high-income industrial system.
This large-scale project, scheduled to run through 2026, aims to establish a fundamentally new, green, and competitive livestock system in Uzbekistan. In today’s realities, the success of a farming enterprise depends not on the quantitative size of livestock holdings, but on the degree of integration of advanced technologies and efficient resource management. The investment breakthrough achieved in partnership with the French Development Agency is intended to serve as a foundational pillar in strengthening national food security and elevating agricultural exports to a new level.
