International Islamic Trade Finance Corporation and ESCAP join forces

The International Islamic Trade Finance Corporation (ITFC) and the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) have today embarked on the implementation of a strategic partnership for a project under the Trade Connect Central Asia+ (TCCA+) Program in the region: “Boosting Exports through Foreign Direct Investments (FDI)”.

The project complements ITFC’s flagship Trade Connect Central Asia+ (TCCA+) Program which aims to achieve inclusive economic growth, regional economic cooperation and promote trade, among the OIC member countries in Central Asia. It also directly aligns with ESCAP’s mission to enhance sustainable development in the region and to foster cross-border investment that supports export growth.

The initiative was unveiled by ESCAP’s Chief of Innovation, Enterprise and Investment, Jonathan Wong, at the Special Programme for the Economies of Central Asia (SPECA) Economic Forum in Dushanbe, Tajikistan.

The benefactors of the new “Boosting Exports through Foreign Direct Investments (FDI) project are Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. The project will focus on three key objectives:

• Boost exports through FDI: Focused on Azerbaijan, Kazakhstan, and Tajikistan, the project will revitalise FDIs in strategic sectors such as digital services, agriculture, the lighting industry, and petrochemicals.
• Scale-up digital and tech firms: At the regional level, the project will equip digital and tech firms from Azerbaijan, Kazakhstan, and Tajikistan to scale up through FDI and international exports.
• Develop a regional investment attraction plan: Create and implement a plan for investment attraction, led by ESCAP’s Investment team under the SPECA framework, involving all six Central Asian nations.

As part of the ongoing efforts, ITFC and ESCAP will work closely with national and regional stakeholders, including governments, Investment Promotion Agencies (IPAs), and the private sector, to ensure the successful implementation of the project. Through this strategic partnership, they will seek to deliver substantial outcomes with the collective goal of growth investment and export potential in Central Asia with key outputs expected in 2025. These include:

• The development and implementation of action plans for promoting FDI-driven exports in Azerbaijan, Kazakhstan, and Tajikistan.
• Strengthen the capabilities of Investment Promotion Agencies (IPAs) by incorporating FDI-measurement metrics in promoting sustainable investment projects that drive trade.
• Training 18 digital and tech firms across the region, enabling them to attract FDI and enhance their international competitiveness.

Speaking at the SPECA Economic Forum, Nazeem Noordali, Chief Operating Officer of ITFC, said: “This is a milestone moment for ITFC in our endeavours to grow the TCCA+ Program and further improve the investment and trade opportunity in Central Asia. ESCAP’s vision complements ours and this alignment allows for our strategic partnership to collectively foster deeper regional economic integration.”

Additionally, Jonathan Wong highlighted: “We’re delighted to partner with ITFC in this joint effort. By boosting FDI and enhancing export capacity in key sectors, this initiative will not only promote regional economic cooperation but also support local businesses to grow. This is an exciting period for Central Asia.”

During the same event, ESCAP and ITFC announced the launch of a new programme in collaboration with Gobi Partners, a leading Asia-focused venture capital firm and GUIDE, an entrepreneurship development organisation. This initiative will support Central Asian start-ups and small and medium enterprises (SMEs) in accessing markets and attracting investment to boost digital service exports from Central Asia. An open call for Central Asian startups and SMEs will be released in January 2025 and the programme will officially kick off in May 2025.