New project aims to overcome financial barriers for Azerbaijan's farmers

The International Finance Corporation (IFC), a member of the World Bank Group, in collaboration with the Swiss State Secretariat for Economic Affairs (SECO), has launched a four-year consultancy project aimed at improving access to finance for agricultural producers in Azerbaijan.

The initiative, which focuses on the certification of products and warehouses, seeks to address the financial barriers that hinder the growth of farmers and agribusinesses, thereby boosting productivity across the sector, Caliber.Az reports per local media.

Agriculture in Azerbaijan employs approximately 37 per cent of the workforce, yet it contributes only 5.5 per cent to the country's GDP. According to the IFC, one of the key challenges faced by the sector is the limited access to finance, primarily due to the lack of collateral and the high risks associated with agricultural lending.

To tackle these issues, the project will focus on establishing a legislative and regulatory framework for financial instruments, with the aim of supporting digitalization and enhancing the sector’s overall financial infrastructure. Once the legislative framework is in place, the project will shift its focus to building the capacity of both financial institutions and farmers to better navigate the financing landscape.

By Vafa Guliyeva