Enviro News Asia, Tashkent – The International Fund for Agricultural Development (IFAD), the European Union (EU), and Hamkorbank have launched a new programme aimed at transforming remittances into business opportunities for rural communities in Uzbekistan.
The initiative targets nearly 4,000 remittance-receiving households and returning migrant workers, helping them access financial services and develop rural enterprises. The programme introduces an innovative remittance-based credit scoring model that recognizes money sent home by migrant workers and returnees’ savings as proof of repayment capacity.
The system is designed to overcome common barriers that prevent rural residents from accessing formal banking services, particularly the lack of documented income or credit history.
Pedro de Vasconcelos, Manager of the Financing Facility for Remittances at IFAD, said recognizing remittances as a reliable income source could significantly expand access to financial services for rural families.
“Recognizing remittances as a reliable source of income to prove creditworthiness can be transformational for rural families,” he said, noting that the initiative is being piloted in collaboration with Hamkorbank under the regulatory sandbox of the Central Bank of Uzbekistan, with the potential to serve as a model for other countries in the region.
The programme is co-financed by the European Union through the REMIT PRIME Central Asia Programme, which seeks to turn remittance flows into productive investments and sustainable rural livelihoods.
Christos Marazopoulos, Head of Cooperation of the EU Delegation to Uzbekistan, stated that the initiative reflects the EU’s commitment to strengthening inclusive financial systems through its Global Gateway strategy.
According to him, the programme demonstrates how innovative financial solutions can unlock economic opportunities for migrant families and rural communities while supporting sustainable economic growth.
As one of Uzbekistan’s leading banks, Hamkorbank currently serves nearly 900,000 remittance recipients, representing around 20 percent of the country’s remittance market. With its strong presence in rural areas, the bank is well positioned to expand financial inclusion and scale the new credit scoring model nationwide.
Hikmatullo Alikhonov, Chief Risk Officer and Deputy Chairman of the Management Board of Hamkorbank, said the initiative could help migrant families transition into rural entrepreneurs by providing access to appropriate financial tools.
In Uzbekistan, remittances remain a crucial economic lifeline, reaching US$14.8 billion in 2024, which represents more than 10 percent of the country’s GDP. However, rural communities and returning migrants often face structural barriers to credit and business support, leading many to rely on informal employment or consider migrating again.
The programme aims to address these challenges in line with Uzbekistan’s National Development Strategy 2030, which prioritizes the economic reintegration of returning migrant workers.
Beyond financial access, the initiative will also provide business and financial literacy training for 900 rural residents, with at least half of the participants being women. In addition, 100 participants will receive individual mentorship to start or expand businesses in sectors such as agriculture, agro-processing, transportation, and rural services. (*)
