August 18, 2020
Aug – Dec 19
BTA Consulting Limited from the UK, delivered a world class and achievable capital market development strategy for the CMDA (Competent Authority) and the EBRD for the equity markets. Due to the tremendous cooperation of the CMDA and the EBRD, the strategy was completed in a record 5-month period. It defined two key goals:
- To create 60 Trillion Soums or USD 6 Billion of publicly traded securities (10% of GDP) by the end of 2024 in Uzbekistan (split equally between Government Bonds, Corporate Bonds and Equities).
- To lead Uzbekistan to achieve Frontier Market status by the beginning of 2024 (full compliance by the end of 2021).
The programme defined a comprehensive series of action plans, including the delivery of a successful privatisation plan, with the emphasis of delivering the privatisation plan into the local market, to stimulate the creation of local retail and institutional investors. It is believed that following such a programme, as opposed to listing privatised companies abroad, will enhance financial literacy locally and create significant economic multipliers into the Uzbek marketplace. To complement this strategy, the proposal included plans to digitally enable 2.5 Mn domestic investors to invest 3.5 Mn Soums each (6% of estimated savings) and to attract 0.25 Mn diaspora investors during the 5 year plan.
The overall strategy comprehensively addressed the end to end requirements through 21 initiatives, including a clear legal reform strategy, development and definition of the role of the CMDA, enhancement of the FMIs, strengthening of intermediation through the attraction of new entrants from abroad and with local development, and many other pillars. Uzbekistan is set to deliver some spectacular developments based on strong leadership from the CMDA and extensive support from the EBRD and other IFIs.