The Board of Directors of the European Bank for Reconstruction and Development (EBRD) has approved a new country strategy for Azerbaijan, guiding its investment and policy initiatives over the next five years, Report informs, citing the EBRD.
The EBRD’s two key priorities for Azerbaijan are: (i) fostering greater economic diversification through a stronger, more competitive, and inclusive private sector and improved governance; and (ii) accelerating the transition to a green economy and improving regional connectivity.
Under the first priority, the EBRD aims to address Azerbaijan’s reliance on hydrocarbon exports by boosting the competitiveness and inclusiveness of its private sector. The bank will channel investment and advisory support to small and medium-sized enterprises in non-oil sectors such as agribusiness, manufacturing and services, information and communication technology, and infrastructure.
The bank will also focus on empowering female- and youth-led enterprises, supporting innovation and expanding export capabilities through greater competitiveness, while continuing to work with government entities to strengthen corporate governance, advance reforms to state-owned enterprises and improve the overall business climate.
The second priority aims to help Azerbaijan unlock its substantial renewable energy potential. The bank will continue to support the development of solar and wind energy projects, enhance energy efficiency and bolster climate resilience. Strengthening Azerbaijan’s energy grid and enabling exports of renewable energy will be central to this effort.
The EBRD will help Azerbaijan to capitalize on its geographical location between Europe and Asia. The Bank will invest in sustainable transport networks, municipal infrastructure and digital connectivity, with a particular focus on projects linked to the Middle Corridor.