Asian Development Bank Sets Its Sights on Central Asia

The Asian Development Bank (ADB) is significantly stepping up its involvement in Central Asia and the Caspian Basin. Billions in aid for Kazakhstan, Tajikistan, and Azerbaijan suggest that the bank primarily aims to advance the development of the so-called Middle Corridor—the trade route between China and Europe that bypasses Russia.

On March 2, following a meeting between ADB President Masato Kanda and Kazakh President Kassym-Jomart Tokayev, the ADB announced financing of up to $5.4 billion for the next four years. The funds are intended to support Tokayev’s modernization program, particularly the digitalization of the economy and public administration. Kazakhstan is a key country for the Middle Corridor.

“The ADB is committed to supporting Kazakhstan’s development priorities that promote sustainable and inclusive economic growth,” Kanda stated, according to a press release from the bank.

Just two days later, Kanda also pledged up to $1.1 billion in support to Tajikistan for the period from 2026 to 2028. The funds are intended to foster the development of a more dynamic private sector and create new jobs.

As early as the end of last year, the ADB had pledged up to $2.5 billion in aid to Azerbaijan for the years 2026 to 2029. The goal is to support the country’s development priorities and to develop Azerbaijan into a regional hub for connectivity, trade, and energy between Central Asia and Europe. The country is considered the western gateway of the Middle Corridor toward the European Union.

Border crossings and customs as bottlenecks

In addition, the ADB is working on a technical assistance package to modernize border crossings in Central Asia and the Caucasus. The project aims to simplify customs procedures along trade routes and shorten transit times. The plan received preliminary approval at the end of February.

The scale of the new commitments becomes clear when looking at previous aid: Since joining the bank in 1994, Kazakhstan has received a total of $7.7 billion in loans, grants, and technical assistance. Tajikistan has received nearly $3 billion since 1998. The sums now announced thus mark a significant intensification of the commitment.

Geopolitics plays a role

The expansion of ADB aid comes at a time when the United States is also strengthening its economic and diplomatic interest in Central Asia. Among other things, the goal is to promote regional connectivity and improve access to critical raw materials.

But it is not just about infrastructure. According to its own statements, the ADB also aims to deepen economic policy coordination among the states of Central Asia. In an analysis published in January, the bank wrote that the countries must transition from demand-driven to productivity-oriented growth. This requires reforms that strengthen governance, promote private investment, and deepen economic and financial integration.

A bank with significant political clout

The Manila-based Asian Development Bank has 69 member states. The largest shareholders are the U.S. and Japan, each with just over 15 percent. They are followed by China, India, and Australia, each with shares of around 6 percent.

Further commitments for Central Asia could follow soon. In early May, the Uzbek city of Samarkand will host this year’s ADB Annual Meeting—an obvious venue for new announcements regarding the region.

This article was produced in cooperation with our partner bne intelliNews