Azerbaijan in talks with international organisations to finance agriculture

Azerbaijan's Agriculture Minister Majnun Mammadov has said that Azerbaijan is currently negotiating with international organisations to attract investments in agriculture.

“Over the past few days within COP29 we have held a number of meetings with international financial institutions and they have expressed readiness to support various projects for farmers,” Mammadov told reporters, according to Caliber.Az.

Mammadov also noted the development of projects to improve water supply, provide modern agricultural techniques, and improve knowledge on climate change.

Meanwhile, on the same day, Azerbaijan's Deputy Agriculture Minister Ilhama Gadimova said that the Baku Harmoniya Climate Initiative for Farmers will lead and coordinate global initiatives in agriculture.

“There are more than 90 such global initiatives in the world, and the problem is not lack of action, but lack of coordination. Harmony acts as the conductor of this orchestra, aligning efforts to maximise impact,” Gadimova said at the launch of the Baku-based Harmony for Farmers: Empowering Farmers for More Resilience to Climate Change Initiative.

Gadimova emphasised that Harmony for Farmers is a solution that brings coherence and clarity to the complex landscape of climate and agricultural projects.

“Imagine yourself a farmer facing unpredictable rainfall, rising temperatures and increasing water scarcity. You know that there are solutions - technology, financing, partnerships - but finding them among the many initiatives is like trying to find a needle in a haystack. That's the gap that Harmony seeks to address,” she added.

Notably, Azerbaijan has designated agriculture as one of four priority sectors for diversifying its economy. Agriculture is Azerbaijan’s largest employer, employing 37% of the population but accounting for only 7% of GDP. Azerbaijani produce has strong brand recognition in post-Soviet markets and often sells at a premium. 

The government supports the agricultural sector through grants, tax exemptions, and subsidies for machinery, pesticides, and fertilizers. Machinery subsidies have supported sales of US combines, tractors, harvesters, and irrigation equipment.

Azerbaijan’s liberated territories have created new opportunities in agriculture for both local and international companies. One important area is the need for feasibility studies to identify agricultural potential in the returned territories. The Azerbaijani government is also paying increasing attention to the country’s diminishing water resources. In 2020, Azerbaijan announced a new commission on water resource preservation that is primarily tasked with improving water use in the country’s growing agriculture sector.

By Khagan Isayev