On 31 January, the Board of Directors of the European Bank for Reconstruction and Development (EBRD) approved a new country strategy for Azerbaijan, guiding its investment and policy initiatives over the next five years.
In this strategy, the EBRD sets two key priorities for Azerbaijan:
- fostering greater economic diversification through a stronger, more competitive, and inclusive private sector and improved governance;
- accelerating the transition to a green economy and improving regional connectivity.
Under the first priority, the EBRD aims to address Azerbaijan’s reliance on hydrocarbon exports by boosting the competitiveness and inclusiveness of its private sector. The Bank will channel investment and advisory support to small and medium-sized enterprises in non-oil sectors such as agribusiness, manufacturing and services, information and communication technology, and infrastructure.
The Bank will also focus on empowering female- and youth-led enterprises, supporting innovation and expanding export capabilities through greater competitiveness, while continuing to work with government entities to strengthen corporate governance, advance reforms to state-owned enterprises and improve the overall business climate.
The second priority aims to help Azerbaijan unlock its substantial renewable energy potential. The Bank will continue to support the development of solar and wind energy projects, enhance energy efficiency and bolster climate resilience. Strengthening Azerbaijan’s energy grid and enabling exports of renewable energy will be central to this effort.
The EBRD is the largest institutional investor in Azerbaijan. To date, the Bank has invested over €4 billion in Azerbaijan across 195 projects in sectors including renewables, connectivity and sustainable infrastructure.
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