Breaking Barriers: How Financial Inclusion Is Unlocking the Potential of Women Entrepreneurs in Uzbekistan
In her shop, Dono Zupparhanova carefully curates a selection of colorful bed linens and towels, each item a testament to her family’s long history in the textile industry. Her journey began in 1996, when her mother opened the Demir Shopping Centre, introducing foreign textiles to Uzbekistan. Today, Zupparhanova continues that legacy as the newest entrepreneur running the business her mother started.
With a keen understanding of the market, she expanded her family’s business by securing loans from Ipak Yuli Bank. This support allowed her to open three new shops and import premium brands. “Access to financing has transformed our business,” she explains, noting the increasing demand from customers.
Zupparhanova's impact extends beyond her business. With plans to open four more stores by the end of the year, she is committed to uplifting other women entrepreneurs, sharing her experiences, and breaking down societal barriers in Uzbekistan.
Addressing Socio-Economic Challenges for Women Entrepreneurs in Uzbekistan
Uzbekistan faces significant socio-economic challenges, particularly for women and women-owned small and medium enterprises (SMEs). Despite representing 14-16 percent of total SMEs, there is an estimated credit gap of around $916 million for these enterprises. The country ranks 108 out of 146 in the Global Gender Gap Report 2024, reflecting substantial gender disparity, with only 16 percent of firms having female ownership compared to higher rates in Europe and Central Asia. Local entrepreneurs, including women-owned businesses, struggle with access to financial resources, face cultural barriers due to traditional gender roles, and lack essential business support services, further complicating their efforts to balance business and family responsibilities.
Zupparhanova experienced a significant transformation in her life and business after receiving financial support from Ipak Yuli Bank. The loans enabled her to expand her family’s textile business, and with the increased revenue, she has not only improved her own quality of life but also grown her family business to one providing jobs to more than ten people, lifting up her community, and fostering a sense of economic empowerment. “A working woman brings happiness not just to herself, but to her family and community,” she emphasizes, highlighting the broader impact of her work. Zupparhanova‘s journey has inspired many women around her, showing them the possibilities that come with entrepreneurship. She is not only advancing her own dreams but also cultivating an environment where other women feel encouraged to pursue their aspirations, contributing to a stronger, more resilient community in Uzbekistan.
“A working woman brings happiness not just to herself, but to her family and community.”
Dono Zupparhanova and Fazilat Usmanova share their insights as women business owners in Uzbekistan.
Meet Fazilat Usmanova and Kamol Usmanov: Innovative Entrepreneurs in Uzbekistan's Culinary Scene
Usmanova and her husband are the driving force behind Ciao-Ciao Pizza, their family business that opened in November 2023 in Tashkent. Since then, they’ve successfully launched a second location, employing eight people and offering over 40 unique pizza varieties by chefs with restaurant experience from all over Europe. “We wanted to bring that authentic taste to Uzbekistan,” she shares, inspired by their travels and Usmanova’s brother’s successful pizzeria in Sweden.
Fazilat Usmanova and Kamol Usmanov are the owners of Ciao Pizza.
Fazilat Usmanova and Kamol Usmanov are the owners of Ciao Pizza.
As a fitness club manager, Usmanova balances her dual roles while her husband, a retired colonel, leads operations at the pizzeria. With support from Davr Bank, they developed a solid business plan and received valuable management advice. Although there are challenges like ensuring customer turnout and managing finances, they are facing them together. Looking ahead, they hope to open more locations and expand into food trucks, eager to make their beloved pizzas accessible to neighborhoods across Uzbekistan.
Strengthening Financial Inclusion and the Role of Banks in Empowering SMEs in the Country
Financial institutions like Davr Bank and Ipak Yuli Bank play crucial roles in enhancing financial inclusion for SMEs in Uzbekistan. By offering tailored loan products and financial services, these banks empower entrepreneurs like Zupparhanova and Usmanovа to expand their businesses. IFC’s $10 million loan to Davr Bank had a 80% carve out for women-owned SMEs, providing essential financing options that enable enterprise customers to acquire equipment and open new locations. Meanwhile, Ipak Yuli Bank launched tailored services to women-owned businesses, helping them navigate the challenges of accessing credit.
IFC has been working with local banks like Ipak Yuli and Davr to help them tailor and grow financial solutions for women entrepreneurs, so that they, in turn, can expand their businesses and create more jobs. In line with this commitment, Ipak Yuli Bank is supporting micro, small and medium enterprises (MSME) lending, ensuring that at least 25 percent of the total proceeds are directed toward on-lending to women-owned MSMEs, as part of the MSME Finance Platform Base of Pyramid (BOP) initiative. The collaboration is part of IFC’s Banking on Women business, working not only with banks in Central Asia, but with over 250 financial institutions around the world.
“Thanks to our partnership with IFC, we have been able to expand our lending capacity, develop innovative financial products, and implement targeted initiatives that empower women entrepreneurs. We believe that by prioritizing and expanding access to finance for women, we are fostering a brighter future for Uzbekistan, where every woman can thrive and succeed,” says Saidabror Saydakhmedov, Chairman of the Management Board of Ipak Yuli Bank.
IFC's support to Davr Bank and Ipak Yuli Bank has streamlined loan approval processes and improved risk management practices, enabling both banks to better serve SMEs and women entrepreneurs. This collaboration has expanded their outreach, ensuring more businesses access the financing needed to thrive and contribute to Uzbekistan's economic development.
"We believe that by prioritizing and expanding access to finance for women, we are fostering a brighter future for Uzbekistan."
"By providing women with equal opportunities to access financial resources, we are unlocking their potential as entrepreneurs, job creators, and change-makers,” says Wiebke Schloemer, IFC Director for Türkiye and Central Asia. “It is not just about financial inclusion; it is about empowering women to shape their own destinies and build a more equitable society."
Together, IFC and its partner banks, are contributing to addressing financial inclusion challenges, and enabling businesses like Ciao-ciao Pizza and traders like Zupparhanova to flourish.
"I'm not just growing a business; I'm empowering other women, reflects Zupparhanova. “We're breaking down barriers, challenging the status quo, and inspiring each other to reach our full potential. By doing so, we are creating a ripple effect that will benefit generations to come. I can't wait to see what the future holds for my business and our community."
Published January 2025
