On June 17, Ivana Fernandes Duarte, the International Finance Corporation (IFC) Regional Manager for the South Caucasus, outlined IFC’s strategic priorities and ongoing initiatives in Azerbaijan during an exclusive interview with Report.
During the interview, Duarte identified agriculture, water security, and sustainable construction as the most promising sectors for private investment and cooperation with IFC over the next 3–5 years. In agriculture, IFC is partnering with the Azerbaijani government to implement innovative financial tools, including crop and warehouse receipts, to help small farmers secure working capital by using future harvests or stored produce as collateral, thereby integrating them into global value chains and boosting rural employment. In the water sector, where up to 70% of the country’s runoff comes from neighboring states, IFC intends to assist in tackling growing water scarcity through improved sector sustainability, wastewater treatment, and potential desalination projects. In construction, IFC supports the government’s green building initiatives, citing the EDGE-certified AlatBay Logistics Center in the Alat Free Economic Zone as an example, which reduced energy consumption by over 40% and water use by more than 25%. Additionally, investment opportunities in transportation, logistics, and e-mobility are being explored to advance Azerbaijan’s sustainability and regional connectivity goals.
Duarte noted that since joining IFC in 1995, Azerbaijan has received nearly $900 million in investments across approximately 60 projects in financial services, infrastructure, and manufacturing, alongside advisory services aimed at improving the business environment, financial sector resilience, corporate governance, and SME and agribusiness development.
Addressing the broader investment climate, Duarte highlighted that a favorable regulatory environment and financial sector reforms are vital for driving private sector growth. She praised Azerbaijan’s progress in refining its business framework, particularly regarding inspections, licensing, and permits, and affirmed IFC’s ongoing support for attracting private capital, especially through public-private partnerships (PPPs) in infrastructure.
In terms of financial inclusion, Duarte stated that IFC actively cooperates with local banks, such as Bank Respublika, to increase funding for micro, small, and medium enterprises (MSMEs), complemented by advisory services to strengthen sustainable finance and governance standards. She emphasized the importance of asset-based financing to improve SME access to capital and confirmed that IFC is collaborating with the Azerbaijan Banks Association to develop a national asset-based finance tool.
On renewable energy and green infrastructure, Duarte said IFC remains committed to supporting Azerbaijan’s clean energy transition, citing an estimated 23 GW of solar and 157 GW of offshore wind technical capacity. She noted potential investments in regional digital and transmission infrastructure, including the Black Sea Submarine Cable and the Green Energy Corridor, to help Azerbaijan position itself as a major green energy exporter. In the transport sector, which accounts for 22.6% of total energy consumption, IFC supports measures such as expanding electric vehicle infrastructure, renewing public bus fleets, and incentivizing old vehicle replacement.
Duarte confirmed IFC’s interest in participating in the development of Azerbaijan’s transport corridors, particularly the Middle Corridor, recognizing the country’s strategic location as a regional transit hub. She emphasized the potential for private investment in modernizing railways and rolling stock to enhance corridor capacity and sustainability.
Regarding regional cooperation, Duarte underlined the importance of integrated logistics and energy infrastructure across the South Caucasus. She welcomed the expansion plans for the Port of Baku, aiming to increase annual cargo turnover from 15 to 25 million tons and build new container terminals. She stressed that strengthening interconnected transport corridors and developing reliable renewable energy transmission systems are essential for regional integration and for realizing Azerbaijan’s ambitions of exporting green energy to Central Asia and Europe.