ASTANA, Kazakhstan, Dec 14 (IPS) – The European Financial institution for Reconstruction and Improvement (EBRD) is addressing the difficulty of youth entrepreneurship and employment in Central Asia by launching a seven-year €200 million (US$ 218 million) Youth in Enterprise (YiB) programme.
The programme is designed to supply higher entry to finance and related coaching to younger entrepreneurs within the area, the place as much as one third of the inhabitants is aged between 18 and 34 years.
The Youth in Enterprise programme in Central Asia (YiB CA) will goal micro, small and medium-sized enterprises (MSMEs) led or owned by younger people below the age of 35.
It should encompass as much as €200 million for on-lending to as much as 20 accomplice monetary establishments in Central Asia and Mongolia; focused non-financial companies for eligible small companies shall be offered by the Financial institution’s Advice for Small Businesses programme to assist develop their entrepreneurial abilities by coaching, advisory companies and networking alternatives.
The EBRD’s funding shall be complemented by a package deal of as much as €30 million consisting of grants and concessional co-financing to stimulate inclusive lending and youth entrepreneurship.
It’s anticipated that the primary mortgage agreements below the YiB CA will embrace: a mortgage of as much as US$ 10 million to Uzbekistan’s largest non-public financial institution Hamkorbank, a mortgage of as much as US$ 8 million to Shinhan Bank Kazakhstan, a mortgage of as much as US$ 4 million to Mongolia’s main micro lender Transcapital, and a mortgage of as much as US$ 2 million to Kazakhstan-based microfinancial organisation Arnur Credit.
A market evaluation performed by the EBRD within the area reveals that whereas many younger individuals throughout Central Asia have a robust entrepreneurial mindset, only a few have entry to equal financial alternatives. Solely round 10 per cent of them have entry to mandatory coaching {and professional} experience.
This is essential for Central Asia, the place MSMEs account for nearly half of whole employment and contribute to nearly 40 per cent of regional GDP.
Grant assist and concessional finance to the programme is offered by the federal government of Kazakhstan, the Small Enterprise Influence Fund and the European Union.
The EBRD is a number one institutional investor in Central Asia. It has to this point offered near €19 billion by greater than 1,000 initiatives.
Anton Usov is EBRD Chief Spokesman for Central Asia and Mongolia
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© Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service
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