In Uzbekistan, the French Development Agency (AFD) is directing substantial credit and grant resources towards the sustainable development of the livestock sector and the modernization of the agricultural sector through the introduction of advanced technologies. The programme is not simply a general financing mechanism, but a carefully designed system that takes into account the needs of each business entity operating in the livestock sector.
Who can participate in the project and are there any priority areas?
One of the key features of the programme is that there are no restrictions based on location or type of business. Farmers, dehkan farms, family enterprises and individual entrepreneurs engaged in all areas of livestock farming — including cattle breeding, sheep farming, poultry farming and other activities — can participate.
Financial resources are divided into two main lines. The first is intended for large livestock enterprises and provides up to 1 million euros per sub-project. The second is aimed at dehkan farms, family enterprises, and small and medium-sized farms.
“Within the AFD Project, in line with our country’s established policy, all farmers, dehkan farms and entrepreneurs engaged in quality livestock production can access financial resources. The main funding is divided into two lines: up to 1 million euros for large sub-projects and up to 100,000 euros for small farms, particularly young men and women entrepreneurs under the age of 24 who are entering the sector. For small projects, up to 40% of the loan can be covered through a non-repayable grant from the European Union,” said LAOG Grant Coordinator Jurabek Narkulov.
Technological modernization and the purpose of the financing
Sub-project applicants can use the allocated loan funds for three main purposes. First, to modernize and upgrade existing equipment and machinery. Second, to bring livestock housing, keeping and feeding conditions in line with modern standards. Third, to introduce energy-efficient, water-saving and environmentally friendly technologies.
Financing procedure, required documents and common mistakes
Preferential loans under the project are provided through participating commercial banks on the basis of on-lending agreements. Sub-project applicants are not required to collect any additional documents specifically for the project. The existing documents required under state standards for establishing and operating livestock activities, incorporation documents, registered environmental and environmental protection assessments, as well as collateral documents, are sufficient.
According to the specialist, the following criteria and common mistakes play a decisive role in the review and approval of applications:
“Sub-projects are selected by participating commercial banks on the basis of on-lending agreements and the AFD regulations. The participating commercial banks are independent in selecting suitable sub-projects. The main mistake made by applicants is insufficient collateral to meet the bank’s requirements or the complete absence of collateral. In addition, under the programme’s strict requirements, each applicant must contribute at least 30% of the project’s total value from their own funds.”
Next steps for participating in the project
Livestock producers interested in accessing preferential financing under the project can use the electronic portals of participating banks to check whether their farms meet the programme requirements and obtain all necessary information and instructions.
The electronic portals provide information on the benefits of the financing, interest rates and the procedure for obtaining loans. Responsible LAOG specialists, together with commercial bank representatives, also regularly hold presentations in the regions and answer farmers’ questions.
