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AKIPRESS.COM - Taze Ay, a family-owned Turkmen meat producer, is the latest private sector company to benefit from the EBRD’s strategy to support the development of small and medium-sized enterprises (SMEs) in the country, EBRD said in a release.
The EBRD will provide the company with a loan of up to US$ 4.5 million in cooperation with TaiwanICDF (International Cooperation and Development Fund) which will finance a third of the total sum.
The funding will help Taze Ay expand its daily production volume of halal products from the current 3-4 tonnes to 15 tonnes. The company will also acquire new refrigerator trucks, which will help it increase sales across the country during the extremely hot summer period.
A new marketing strategy, supported by the EBRD, will allow Taze Ay to start exporting its halal and other products, made according to traditional and popular recipes, to neighbouring countries in Central Asia and the Caspian region. Currently, halal meat products are only 12 per cent of the company’s output.
Taze Ay is part of a family-owned business group which is also active in confectionery, bakery and logistics services and located in Mary, one of the country’s major municipalities. It is a long-standing EBRD client and has also benefited from the Bank’s expert advice and financial assistance.
In addition, the EU’s Investment Facility for Central Asia will provide over €50,000 to help the company finance project preparation and business development plans.
Engin Goksu, EBRD Head of Turkmenistan, said: “The Bank is continuing to work successfully with long-established clients despite an overall challenging economic environment. The EBRD's work directly supports the Turkmen government’s economic diversification strategy by strengthening local private firms across various sectors.”
Victoria Zinchuk, Head of EBRD Advice for Agribusiness, added: “The EBRD’s cooperation with Taze Ay is a very good example of how a combination of financing and advisory services has helped the company to double its sales. Since our first advisory project with Taze Ay in 2013 the company managed to expand production, become more efficient, improve quality and design of their products and as a result grow into a market leader.”
The EBRD;s activities in the agriculture and food production sectors in Turkmenistan are supported by donors such as TaiwanICDF, which has so far supported seven EBRD projects, including one previous loan to Taze Ay.
Medium-sized private companies, including those in the agriculture and food production sectors, are one of the main priorities for the EBRD in Turkmenistan, where the Bank has so far invested close to €250 million. Ninety per cent of the Bank’s investments in the country support local SMEs.