The credit line provided by the French Development Agency (AFD) is aimed at developing the livestock sector and supporting agribusiness entities in Uzbekistan. These financial resources are available not only to dehkan and farming enterprises, but also to entrepreneurs with proven experience in this field.
Areas of Financing and Types of Investment
Under the AFD project, a wide range of investments covering various stages of the livestock value chain is financed. In particular, funding is provided for the development of cattle farming, sheep and goat farming, poultry farming, fish farming, beekeeping, and rabbit farming. In addition, the construction and modernization of facilities for the processing, storage, and packaging of livestock products are supported.
The project also provides for the construction of infrastructure facilities, including farms, warehouses, and cold storage facilities, as well as the purchase of necessary agricultural machinery, feed production equipment, and veterinary equipment. The project also allows for the implementation of technologies that help save water and energy, as well as the replenishment of working capital.
Bank Requirements for Projects
Commercial banks assess the viability of projects based on specific economic and legal criteria. A project submitted for financing must have a clearly defined market for its products, well-founded financial calculations, and generate a stable cash flow. It is also necessary for the loan to be repaid from the project’s own revenues and for the project to be resilient to external risks.
Loan Application Procedure and Required Documents
To obtain a loan, private enterprises, dehkan and farming enterprises, as well as individual entrepreneurs, must submit the relevant package of documents to the bank. It includes the following main documents:
• a loan application, the company’s incorporation documents, and a resolution of the founders approving the loan;
• the project business plan, documents for the business facility, and the balance sheet;
• conclusions of the state environmental assessment and environmental impact assessment;
• water use and waste disposal agreements;
• contracts for the purchase of goods and equipment, a comparative analysis of offers, as well as design and cost-estimate documentation for construction.
As collateral for the loan, highly liquid assets with a value of at least 125% of the loan amount must be provided. Provided that the documents are completed fully and correctly, the bank’s decision-making process is completed within the established timeframe.
Environmental Sustainability and “Green” Solutions
The AFD credit line pays particular attention to investments aimed at improving resource efficiency and environmental safety in livestock farming. In particular, the installation of solar panels can significantly reduce farms’ electricity costs. The use of biogas plants on livestock farms makes it possible to efficiently process waste and generate heat and additional energy for the farm’s needs, as well as organic fertilizers for agricultural land. This approach simultaneously helps reduce production costs and contributes to environmental protection.
Practical Experience and Application Procedure
The practical effectiveness of the program can be seen in the example of one of its partner banks, Business Development Bank JSCB. Of the 36 subprojects financed by the bank through the AFD credit line, 21 are directly aimed at developing livestock farming and purchasing cattle. Most of the financed projects are related to the acquisition of breeding livestock and the expansion of farming operations. Their economic effectiveness is already being demonstrated in practice.
Farmers and entrepreneurs wishing to implement their projects using the AFD credit line can first contact the AFD Project Implementation Group.
