Uzbekistan's reform story continued at pace in early March, with significant developments across international diplomacy, infrastructure, banking, and trade. Here is what investors and capital allocators need to know.

Europe Deepens Its Commitment

The EU–Uzbekistan relationship took several concrete steps forward. In Brussels, the 19th Parliamentary Cooperation Committee reaffirmed European support for Uzbekistan's reform agenda, with both sides pointing to the October 2025 Enhanced Partnership and Cooperation Agreement as a foundation for expanded collaboration in renewable energy, infrastructure, and industrial development.

Separately, IFAD, the EU, and Hamkorbank launched a €6 million rural finance programme, using a new credit scoring model that recognises remittance income as loan collateral — a meaningful innovation in a country where remittances reached $14.8 billion in 2024, accounting for over 10% of GDP.

Perhaps most notably, French President Emmanuel Macron publicly named Uzbekistan as a strategic partner in Europe's uranium supply chain at a Paris nuclear energy summit, citing the country's output of approximately 7,000 tonnes in 2025. For a nation seeking to reduce dependence on Russian nuclear fuel, Uzbekistan's position in global supply chains is becoming increasingly strategic.

A $300 Million Logistics Hub Takes Shape

Near Tashkent, a major infrastructure milestone was signed: a $300 million EPC contract between Silkway Central Asia and China Railway Construction Engineering Group to build a large-scale multi-purpose logistics centre in Yangiyul district. The facility will cover over 167,000 sq m of warehouse space and 172,000 sq m of container yards, with more than 28 km of on-site railway track. Phase one is expected to be operational by early 2027, with full capacity of 350,000 TEU annually targeted by 2030, scaling to 3 million tonnes of cargo by 2035. The project materially strengthens Uzbekistan's position as a regional transit hub.

Banking & Finance: Privatisation and Pharmaceutical Lending

The privatisation of Ipoteka Bank moved forward, with Hungary's OTP Group — which manages €102 billion in assets globally — meeting with Uzbek authorities to advance the process and confirm plans for a new mobile banking platform in the country.

The EBRD extended a €20 million loan to Uzbek-British pharmaceutical manufacturer Samarkand England Eco-Medical and its affiliate Bayan Medical, targeting a reduction in Uzbekistan's pharmaceutical import dependency, currently at 75% of total medical goods consumed. The EBRD's cumulative investment in Uzbekistan now stands at $6.9 billion across 205 projects.

Trade: Afghanistan Agreement Ratified, Kazakhstan Rail Freight to Double

President Mirziyoyev ratified a preferential trade agreement with Afghanistan, eliminating customs duties on 14 goods categories — a deal originally signed at the Tashkent International Investment Forum in June 2025.

On the regional connectivity front, Uzbekistan and Kazakhstan agreed on a plan to double combined rail freight capacity to 60 million tonnes annually, through coordinated infrastructure upgrades and streamlined transit procedures along key Central Asian corridors.

The Bigger Picture

The first two weeks of March alone saw Uzbekistan advance on uranium diplomacy with France, break ground on a $300M logistics facility, move forward on a major bank privatisation, attract multilateral pharmaceutical lending, and deepen trade ties with both Afghanistan and Kazakhstan. This is not a country in a holding pattern — it is one actively building the infrastructure, institutions, and international relationships that sustained capital market development requires.

Umma Capital tracks Uzbekistan's market developments to help our partners stay ahead of the curve. Get in touch to explore investment opportunities in the region.

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