The OPEC Fund for International Development, together with the International Islamic Trade Finance Corporation (ITFC), will provide Uzbekistan with $100 million to finance the purchase of critical agricultural products. The contribution of each of these organizations will be $50 million, according to EastFruit experts.
“Uzbekistan is a net importer of essential goods such as grain, vegetables and sugar and nearly 40 percent of the country’s food supply originates in the Black Sea region. Following the global repercussions of war in Ukraine, including higher food and commodity prices, food security has become a major concern for Uzbekistan,” says a press release from the OPEC Fund for International Development.
EastFruit experts believe that in this context, vegetables mean potatoes, which are the largest import position of Uzbekistan in the fruit and vegetable segment and are important in ensuring the country’s food security.
Read also: Wholesale prices for potatoes in Uzbekistan increased by 13% in two weeks
“Addressing the global food security crisis is a priority for the OPEC Fund and our support to Uzbekistan is aligned with our Food Security Action Plan. Securing international trade in challenging times is key to ensure that people receive essential supplies and to keep critical supply chains for businesses operational,” said the fund’s CEO, Abdulhamid Alkhalifa.
It is noted that the provided trade finance will contribute to the sustainable supply of the food market of Uzbekistan with the necessary goods at affordable prices.
In June 2022, the OPEC Fund announced its $1 billion Action Plan for Food Security 2022-2025, which provides funding for imports of key commodities, thereby helping to ensure sustainable food supplies in partner countries in the medium and long term. The Fund provides grants and loans to the public and private sectors of developing countries most affected by the consequences of the war in Ukraine.
EastFruit previously wrote about the Asian Development Bank (ADB) approval of a $500 million loan to ensure food security, social protection for vulnerable groups, and support employment in Uzbekistan in the face of the economic consequences of the war in Ukraine.
The use of the site materials is free if there is a direct and open for search engines hyperlink to a specific publication of the East-Fruit.com website.
