DEG invests in Uzbek retail sector

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH has agreed to provide the Uzbek supermarket chain, Korzinka, with a long-term loan totalling USD 25 million. World Bank subsidiary IFC (International Finance Corporation), is also investing the same amount. The company will use the loan to build a state-of-the art 49,000m2 distribution centre in the country’s capital, Tashkent, supporting the company’s growth strategy.

Expansion of logistics and storage capacity

Korzinka currently has more than 150 supermarkets and proximity stores across the country. The new distribution centre is intended to be the first in Central Asia to be an Edge (Excellence in Design for Greater Efficiencies) Certified Green Building, reducing the company’s carbon footprint, guaranteeing maintenance of the cold chain, improving food safety and ensuring that fresh produce is delivered in reliable quality.

Employment for over 10,000 people

Korzinka’s first supermarket opened in 1996 and the chain now employs more than 10,000 people, making it one of Uzbekistan’s largest private employers. The company reaches more than 700,000 households across the country offering them a range of more than 10,000 products. Approximately half of them belong to the food category - many sourced from local producers, helping to develop Uzbek agriculture, a very important economic sector for the country.

The company is also committed to delivering on its CSR programme for employees, which provides a comprehensive range of internal and external training options, scholarships for university tuition and financial support in emergency situations. Korzinka is actively committed to creating opportunities for women to grow their careers and in 2023, 45% of supervisors and 30% of managers were women.

DEG has been active in Uzbekistan for 15 years. It is currently enabling investments of around EUR 280 million in renewable energy projects and financing for local banks. DEG has made investments in food distribution and logistics in various regions of the world.