World Bank approves $150 million boost for Azerbaijan's employment support project

The World Bank (WB) and the government of Azerbaijan are set to sign an agreement for additional financing of the Azerbaijan Employment Support Project (AESP) in the coming days.

According to a statement from the World Bank, additional funding of $150 million was approved in July 2024 to expand the programme’s reach, Caliber.Az reports via local media.

The new funding will further support Azerbaijan’s Self-Employment Programme by extending its coverage to new sectors, such as manufacturing and services, with the aim of boosting economic diversification and resilience to external shocks.

This funding will also pilot an enhanced cash grant scheme, allowing beneficiaries to utilize the funds for business expansion. Furthermore, the financing will bolster the capabilities of Azerbaijan’s Employment Agency, enabling it to offer a broader range of services and programmes to jobseekers. 

As part of this support, the agency will implement additional active labour market measures, including on-the-job training, wage subsidies, apprenticeship programmes, vocational skills development, and reimbursement for certification fees in certain professions.

These initiatives are expected to increase employment opportunities, particularly for women and vulnerable groups, while also enhancing their prospects in the manufacturing and services sectors.

To date, $87.8 million of the total $100 million commitment has been allocated to the project. As of the end of November 2024, over 80,000 applications were submitted, with more than 29,000 participants selected. Around 27,000 individuals have received business skills training, while nearly 19,000 participants have acquired assets to start their own businesses.

Launched in 2020, the project is being implemented by Azerbaijan’s Ministry of Labour and Social Protection and is now extended until December 31, 2029.

By Aghakazim Guliyev