Key facts
- Uzbekistan is implementing a multi-billion-dollar processing drive to increase the value of its exports.
- The country has a $10 billion food processing ambition by 2030 and a $4.2 billion pipeline for technological metals projects.
- Planned sheet-steel localization is 880,000 tonnes annually, with over 200,000 tonnes for export.
- Copper-processing agreements could significantly increase profits for major mining groups.
- Moody's Ratings upgraded Uzbekistan's sovereign rating to Ba2 from Ba3 in June.
Uzbekistan is prioritizing a multi-billion-dollar processing drive as a core component of its export strategy, aiming to capture greater value from its agricultural, metal, and mineral resources domestically. This initiative includes ambitious targets such as a $10 billion food processing sector by 2030 and a $4.2 billion pipeline for technological metals projects, alongside plans to localize 880,000 tonnes of sheet steel production annually.
The country's focus on adding value before export is driven by the need to maximize earnings, especially given its landlocked status. Agriculture Minister Ibrokhim Abdurakhmonov highlighted that producing large volumes is insufficient; generating income from these products is crucial for true food security. The ministry anticipates processed food exports to reach $4.5 billion this year, supported by investments in packaging, canning, and bottling technologies, as well as obtaining international certifications like halal and organic.
Attracting the necessary private investment for these initiatives hinges on more than just government targets. Political stability, a clear path to profitability, available labor, and confidence in the legal framework are essential, according to Kanokpan Lao-Araya, ADB Country Director for Uzbekistan. The Asian Development Bank is supporting this through platforms like ANORA, which mobilizes grant funding for agribusiness. Italian firm Gamma Meccanica is already investing in local production technologies.
In the metals and mining sector, the value-addition strategy is more capital-intensive. The Uzbekistan Technological Metals Complex (TMK) is spearheading over 100 projects. For steel, new facilities aim to localize 880,000 tonnes of sheet steel production annually, with a significant portion intended for export, capitalizing on the substantial price difference between basic steel products and high-alloy variants. Similarly, Almalyk Mining and Metallurgical Complex anticipates that copper-processing and high-tech manufacturing agreements could double or triple its profits.
Ensuring that resource wealth benefits citizens requires strong governance and transparency, particularly in managing contracts, permits, and revenues. Mark Robinson of the Extractive Industries Transparency Initiative cautioned that the push for faster permitting of critical minerals should not compromise transparency, preventing self-interested parties from securing deals at the expense of national interests.