BAKU, Azerbaijan, September 19. Swiss State Secretariat for Economic Affairs (SECO) is exploring the possibility to support the development of a crop receipts market in Azerbaijan, in cooperation with the International Finance Corporation (IFC), Guy Bonvin, deputy head of mission, deputy head of Regional Cooperation at the Embassy of Switzerland to Azerbaijan and Turkmenistan, told TurkicWorld
He recalled that in the past, SECO has supported the strengthening of the agribusiness sector via an IFC implemented project (project was completed in 2021).
"The project focused on regulatory streamlining and expanding access to agri-finance products for agri-enterprises. A main achievement has been the creation of a standardized agriculture risk assessment tool and management instruments, which allows local financial institutions to reduce transaction cost and hence facilitating lending to agri-enterprises and farmers. Currently, SECO is exploring the possibility to support the development of a crop receipts market in Azerbaijan, in cooperation with the IFC. This activity is seen as the potential continuation of the current advisory activities supported by SECO in the field of the asset-based financing through the IFC," Bonvin added.
He went on to add that the Swiss economic development cooperation in Azerbaijan focuses on the areas of macro-economic support and private sector development, which does not include activities in the area of sustainable energy.
"There are no plans to change this approach going forward," Bonvin explained.
Further, he noted that Switzerland supports financial inclusion in Azerbaijan through a dedicated digital financial services program, implemented by IFC.
"Digitalization of traditional financial products and the introduction of innovative digital financial service help to increase financial inclusion of households and firms, and therewith contribute to economic development. Such products can significantly lower transaction cost, increase security and transparence of transaction and facilitate tailoring financial services to specific needs of consumers, in particular women.
Improved access to basic financial services also translates into increased productivity and growth for SMEs, as well as higher incomes for individuals. This project specifically supports Azerbaijani IT companies. Additionally, the Star Venture Initiative, implemented within the frame of the Small Business Impact Fund, a multi-donor initiative of the EBRD co-financed by Switzerland, made possible the support of 5 start-ups, mostly active in the digital services," Bonvin added.
