BAKU, Azerbaijan, January 31. The European Bank for Reconstruction and Development (EBRD) has unveiled its new country strategy for Azerbaijan, setting the stage for a focused investment and policy agenda over the next five years, Trend reports.
Azerbaijan’s economy has long been dependent on oil and gas exports, and the EBRD aims to reduce this reliance by bolstering the competitiveness and inclusiveness of the private sector. Key initiatives will target small and medium-sized enterprises (SMEs) in non-oil sectors such as agribusiness, manufacturing, services, ICT, and infrastructure. A particular emphasis will be placed on supporting female- and youth-led businesses, driving innovation, and enhancing export capabilities.
Alongside fostering a more competitive private sector, the EBRD’s strategy also focuses on accelerating the country’s shift to a greener economy. Azerbaijan has significant potential for renewable energy, and the bank plans to back the growth of solar and wind projects, improve energy efficiency, and enhance climate resilience. Another key component of this transition involves strengthening the country’s energy grid to facilitate the export of renewable energy.
The EBRD also intends to leverage Azerbaijan’s strategic location at the crossroads of Europe and Asia. Investments in sustainable transport networks, digital infrastructure, and municipal projects will further enhance Azerbaijan’s regional connectivity, with a specific focus on the Middle Corridor.
Nataly Mouravidze, Head of the EBRD’s Azerbaijan office, expressed optimism following the Board’s approval of the strategy, noting, “We look forward to working with Azerbaijan to build a diversified, inclusive, and sustainable economy. By tapping into the country’s renewable energy potential and boosting its regional connectivity, we can unlock long-term opportunities for the people of Azerbaijan.”
The EBRD has been a longstanding partner in Azerbaijan’s development, having invested over 4 billion euros in 195 projects spanning sectors such as renewables, infrastructure, and connectivity. With this new strategy, the bank aims to further its impact, working alongside government efforts to foster reforms and improve governance, ensuring Azerbaijan’s future economic growth is both sustainable and inclusive.