The EDB: IFI investments in Eurasia’s economy have declined by 17% over 17 years

The EDB proposes eight measures to strengthen the investment impact of international financial institutions in the region.

Almaty, 18 September 2025. The Eurasian Development Bank (EDB) has released a report titled Investing in the Future: Projects of International Financial Institutions in Eurasia. The paper identifies ten key trends in non-sovereign financing by international financial institutions (IFIs) in the Eurasian region and proposes ways to encourage more active and diversified IFI investment in development projects.

Key Findings

The central finding is that non-sovereign IFI financing in Eurasia in real terms has fallen by 17% over 17 years. The structure of this financing has also changed:

New leader in non-sovereign financing: Since 2018, the EDB has surpassed the EBRD and become the leading institution providing non-public financing for projects in Eurasia.

New geography: Investment has shifted to Central Asia (63% of all financing in 2022-2024), with Kazakhstan becoming the largest recipient.

New priorities: Financing has increasingly focused on green projects (rising from 8% in 2008-2010 to 32% in 2022-2024) and renewable energy sources (from 0% to 18%). At the same time, investment in industry, agribusiness and digital infrastructure has declined, creating a potential imbalance.

To address these imbalances and consolidate positive trends, the EDB has drawn up an eight-point agenda that suggests redirecting financing towards non-sovereign projects, increasing investment in industry, agribusiness, water and transport security, and expanding the use of national currencies.

More about the Report:

Using the database compiled by the EDB in 2024, the report examines changes in IFI financing in Eurasian countries, covering more than 2,000 non-sovereign operations approved by 16 IFIs across 11 countries between 2008 and 2024.

Trend 1. Decrease in real volumes of non-sovereign financing by IFIs over a 17-year period. EDB analysts found that non-sovereign IFI financing in Eurasia has decreased by 17.4% in real terms (hereinafter the report compared average annual financing volumes for 2008-2010 and 2022-2024 to smooth out volatility). This was driven by accelerating dollar inflation, which rose 1.5 times between 2008 and 2024; specific national financing conditions and sluggish growth in MDB financing globally, leading G20 countries to adopt the Roadmap towards Better, Bigger, and More Effective MDBs in 2024, in which the EDB participated.

Trend 2. Changing structure of leaders among IFIs. EDB analysts note that the role of IFIs in the region has shifted dramatically over 17 years. From 2018, the EDB became the leading provider of non-sovereign financing, surpassing the EBRD. Between 2022 and 2024, approved IFI operations in the region totalled $16.4 billion, of which the EDB accounted for 40% ($6.5 billion), the EBRD 23% ($3.6 billion) and the World Bank 17% ($2.8 billion).

Trend 3. Concentration of new projects in Central Asia. EDB analysts highlight that the share of Central Asia in total non-sovereign IFI financing in Eurasia grew from 18% to 63%. Average annual financing for the subregion quadrupled from $0.8 billion to $3.5 billion, reflecting the pace of development in Central Asia as a large, fast-growing and promising economic region. Between 2022 and 2024, the EDB led in non-sovereign operations in Central Asia among all IFIs ($4.2 billion). Kazakhstan was the largest recipient of non-sovereign investment ($5.9 billion) both in Central Asia and across Eurasia.

Trend 4. Dynamic growth of non-sovereign investments in the South Caucasus. The share of IFI investment in South Caucasus countries rose from 9% to 20%, while average annual financing increased from $0.4 billion to $1.1 billion. Between 2022 and 2024, the leading investors were the EBRD ($1.2 billion), the IFC ($0.7 billion) and the EIB ($0.4 billion). IFI investment growth here was lower than in Central Asia, reflecting the smaller scale of the economies, lower investment potential and weak regional connectivity.

Trend 5. Renewable energy - new sectoral priority for IFIs. The EDB's report highlights that the share of renewable energy in total non-sovereign IFI financing in the region rose from zero to 18%. The active increase in investment in the sector was driven by the global agenda. EDB analysts note that this shift has reduced IFI financing for other important sectors, including finance, mechanical engineering, agribusiness and digital infrastructure.

Trend 6. Boom in green projects in the energy and financial sectors. The report notes that the share of green projects in non-sovereign IFI financing grew from 8% to 32%, mainly through investment in renewable energy, energy infrastructure and green finance. In 2022-2024, the region's leading IFIs for green financing were the EBRD ($2.1 billion), the ADB and the EDB ($0.8 billion each).

Trend 7. Onlending - a mechanism for investment in SMEs. Through onlending, IFIs provide indirect financing to SMEs via commercial banks. This approach has grown in popularity, with financing rising by 31%, outpacing average growth in non-sovereign investment. EDB analysts link the interest in onlending to IFIs' increasing focus on investment in SMEs. Between 2022 and 2024, the leading IFIs in this area were the EBRD ($1.2 billion), the IFC ($1.0 billion) and the EIB ($0.6 billion).

Trend 8. Reduction in co-financing. The 33% decline in average annual IFI co-financing (from $1.2 billion to $0.8 billion) was mainly due to the EBRD shifting its focus from Russia to other countries with smaller scales of financing. The IFC and the ADB increased their average annual co-financing. The EDB's report notes that co-financing creates new opportunities for borrowing countries and IFIs such as pooling capital, reducing risks and boosting investor confidence in projects.

Trend 9. Strengthening the role of bonds in the financing system. IFIs have started purchasing client bonds more. The report notes that the share of bonds in the total mix of financing instruments rose from 0.5% to 7%. Investment loans made up the bulk of non-sovereign financing in the region (81% in 2022-2024). EDB analysts attribute the increased interest in bond financing to the expansion of green and social bond market and the appeal of bonds as an instrument.

Trend 10. Increasing importance of financing in national currencies. IFIs have stepped up financing in national currencies of the countries' in the Eurasian region. EDB analysts estimate that the average annual volumes of such financing went up by 50%, from $0.8 billion to $1.2 billion. The increase in financing in national currencies was driven by strong borrower demand and improving liquidity in national currencies. The overall dynamics are strongly influenced by the EDB, which is the leading provider of local currency financing both regionally and globally. Other banks (notably the ADB, IFC and EIB) increased local currency financing in the region almost tenfold from a low base.

Looking ahead. EDB analysts expect that most of the analysed trends will remain relevant for the next three to five years. They stress, however, that IFIs need to respond more closely to Eurasia's specific challenges. The region's countries particularly need investment in industry, cross-border connectivity, and energy and water security. According to the EDB, the following measures could significantly enhance the positive impact of non-sovereign IFI investment on the future of Eurasian countries:

The full report, presentation and additional materials are available on the EDB's website.

For questions or feedback, please contact [email protected].

Additional Information:

The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 19 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. By july 2025, the EDB's cumulative portfolio comprised 319 projects with a total investment of US $19,1 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.

The EDB is implementing three mega-projects as part of its 2022-2026 Strategy: the Eurasian Transport Network, the Eurasian Agricultural Goods Distribution System and the Central Asian Water and Energy Complex.

The EDB Media Centre:

+7 (727) 244 40 44, ext. 4774, 2160

[email protected]

https://www.eabr.org