World Bank to support Uzbekistan’s digital economy with $50 million

The World Bank’s Board of Executive Directors has authorized a $50 million concessional loan to help Uzbekistan undertake its Digital Inclusion Project.

The initiative seeks to assist the growth of the digital economy by providing thousands of young people in rural and remote areas with access to digital skills and employment opportunities in information technology-enabled businesses.

Uzbekistan’s export of IT-enabled services (ITES) has increased significantly, going from $600,000 in 2017 to $140 million in 2022. This expansion has coincided with an increase in the number of firms and high-paying positions in the information technology industry.

Despite these encouraging trends, the sector’s contribution to national GDP will remain small in 2022, at 1.9%.

According to the 2030 National Development Strategy, the government aims to become a Central Asian IT powerhouse by the end of this decade, grow annual IT exports to $5 billion, entice 1,000 global IT businesses to set up shop in Uzbekistan, and employ 300,000 youngsters in the IT industry.

To attract global and domestic investments in the IT industry, Uzbekistan will need to devote large resources to talent development, the development of critical IT and office infrastructure, and the implementation of suitable legislation, policies, and incentives.