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ASTANA, Kazakhstan, Dec 14 (IPS) – The European Bank for Reconstruction and Development (EBRD) is addressing the issue of entrepreneurship and youth employment in Central Asia through a seven-year €200 million (US$218) Youth in Business campaign million) (YiB) program to be launched.
The program aims to provide young entrepreneurs in the region, where up to a third of the population is between 18 and 34 years old, with better access to financing and relevant training.
The Youth in Business Program in Central Asia (YiB CA) will focus on micro, small and medium enterprises (MSMEs) led or owned by young people under the age of 35.
It will consist of up to €200 million for on-lending to up to twenty partner financial institutions in Central Asia and Mongolia; targeted non-financial services for eligible small businesses will be offered through the Bank’s Small Business Advice program to help develop their entrepreneurial skills through training, advisory services and networking opportunities.
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The EBRD investment will be complemented by a package of up to EUR 30 million, consisting of grants and concessional co-financing to boost inclusive lending and youth entrepreneurship.
The first loan agreements under the YiB CA are expected to include: a loan of up to $10 million to Uzbekistan’s largest private bank Hamkorbank, a loan of up to $8 million to Shinhan Bank Kazakhstan, a loan of up to $8 million dollars to US$4 million to Mongolia’s largest microlender Transcapital, and a loan of up to US$2 million to Kazakhstan-based microfinance organization Arnur Credit.
A market analysis conducted by the EBRD in the region shows that while many young people in Central Asia have a strong entrepreneurial mindset, few have access to equal economic opportunities. Only about 10 percent of them have access to the necessary training and professional expertise.
This is of great importance for Central Asia, where SMEs account for almost half of total employment and contribute to almost 40 percent of regional GDP.
Grants and concessional financing for the program are provided by the Government of Kazakhstan, the Small Business Impact Fund and the European Union.
The EBRD is a leading institutional investor in Central Asia. It has provided almost €19 billion through more than 1,000 projects to date.
Anton Usov is the EBRD’s chief spokesperson for Central Asia and Mongolia
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© Inter Press Service (2023) — All rights reservedOriginal source: Inter Press Service