IFC Invests $10 Million to Scale SMEs in Central Asia

The International Finance Corporation has committed $10 million to the Highland Central Asia Fund II, a private equity vehicle targeting growth in Uzbekistan and the Kyrgyz Republic. This anchor investment aims to bridge a critical financing gap for local small and medium-sized enterprises struggling to secure long-term capital.

The fund, which seeks a total capitalization of $75 million, intends to deploy capital into 10 to 15 companies across diverse sectors including healthcare, logistics, and food production. As the only institutional private equity fund currently operating in both nations, it occupies a unique position in an underdeveloped market. Highland Capital Co-founder Eldan Usubakunov views this expansion as a pivotal moment for the regional investment landscape, noting that the fund is designed to cultivate a more robust private equity ecosystem.

This initiative follows the success of Highland Capital’s debut fund launched in 2018, which supported 12 companies and generated over 900 jobs. Farid Fezoua, IFC’s Global Director for Equity, Funds and Venture Capital, stated that the organization’s role as an anchor investor is intended to signal stability and attract further commitments from development finance institutions. Beyond the financial injection, the IFC will provide advisory services to refine fund management and value creation strategies, aiming to foster sustainable business growth throughout the region.