Baku, October 1, 2025
The International Finance Corporation (IFC) is rolling out two financial initiatives aimed at strengthening Azerbaijan’s agricultural sector, IFC financial sector specialist Kyrylo Mukhomedzyanov said on the third day of the Second Baku Climate Action Week (BCAW-2025).
Agriculture contributes nearly 6% of Azerbaijan’s GDP and employs about 35% of the population, Mukhomedzyanov noted. Exports of agricultural products have nearly doubled compared to last year, but the sector remains highly vulnerable to climate change.
“We face serious challenges – critical water shortages, outdated irrigation systems, and land degradation. To address these, financial resources are essential. The two tools we are introducing in Azerbaijan are agricultural receipts and warehouse receipts,” he explained.
Pre- and Post-Harvest Financing
Agricultural receipts provide pre-harvest financing, enabling farmers to secure funds for seeds, fertilizers, fuel, and modern equipment before harvest. This, IFC says, boosts climate resilience and productivity.
Warehouse receipts extend financing into the post-harvest cycle, allowing farmers to store their produce in certified warehouses and sell later at better prices.
“These instruments may seem simple, but in reality they create an entire ecosystem of agricultural finance,” Mukhomedzyanov said.
“They expand access to credit, reduce risks for lenders, improve profitability, and stabilize markets by making prices more predictable. They also support contract farming and promote the adoption of climate-smart practices.”
According to IFC, the initiatives are backed by regulatory frameworks tailored to the needs of the agricultural sector, ensuring long-term sustainability.
