Uzbekistan pushes deeper into electrical equipment manufacturing

Uzbekistan is pouring more money into electrical engineering and moving into more complex equipment, but the next hurdle is turning investment into higher productivity. Alena Lebedeva says the country’s success will depend on localizing critical components, lowering costs and meeting international standards.

Why it matters: - Uzbekistan’s electrical engineering push could reshape domestic manufacturing and regional supply chains. - The sector is moving from basic assembly toward higher-value products such as motors, inverters, industrial electronics and automation systems. - The main test is whether investment translates into lower costs, better productivity and export-ready equipment.

What happened: - President Shavkat Mirziyoyev met with electrical industry representatives, entrepreneurs and investors on Nov. 9, 2026. - Over the past 10 years, about $2 billion has been invested in the sector. - The industry has launched 413 production facilities and mastered output of more than 100 product types. - Output in 2026 reached 50 trillion soums, up from 1.7 trillion soums in 2016. - Exports rose to $1.6 billion. - Uzbekistan plans to implement 164 projects worth $11.6 billion over the next three years. - The pipeline includes 29 transformer and pump projects valued at $1.4 billion.

The details: - The National Committee on Statistics says fixed capital investment in Uzbekistan reached 584.2 trillion soums in January-September 2026, up 20.1% year over year. - Industrial production rose 8.1% in the same period to 1,085.7 trillion soums. - Manufacturing accounted for 160.8 trillion soums, or 27.5% of all capital investment. - Manufacturing also generated 86.9% of the country’s industrial output. - Lebedeva said investment should be judged by economic return, not only by volume. - She said a modern production line does not automatically improve competitiveness if equipment is underused, key parts stay imported and costs do not fall. - She argued that the shift now has to be from output growth to productivity growth. - Lebedeva said Uzbekistan exported about $429 million of machinery, equipment and parts in 2024. - She said imports of the same goods were about $6.39 billion, nearly 15 times higher than exports. - Some imports support modernization, but the trade gap shows why domestic production of competitive equipment remains important. - New investment is especially relevant for pump manufacturing because Uzbekistan is upgrading water infrastructure, expanding energy projects and developing major industrial facilities. - Critical parts such as bearings, seals, precision hydraulic units and electronic control systems are still often imported. - Lebedeva said localizing the housing and assembly of pumps can raise volumes, but local production of critical components has a much bigger impact on cost and independence. - She said local or domestic production of hydraulic units, motors and control systems helps firms manage costs, quality and delivery times. - She also said cooperation between pump makers, motor producers and industrial automation firms should be based on technical performance and economic efficiency, not just import substitution. - A presidential decree dated Sept. 12, 2026, sets a target to raise exports of electrical products to $5 billion by 2030. - The same decree targets $3 billion in investment and more production of high value-added products. - The decree includes concessional financing, support for raw material purchases and reimbursement of part of interest costs on investment loans. - Lebedeva said capital access must be paired with higher production quality. - Equipment for large energy, oil and gas, and infrastructure projects must meet API, ISO and customer technical standards. - Meeting those standards requires testing labs, certification, quality control and after-sales service. - High capital costs can push companies toward fast-payback projects instead of deeper technology upgrades.

Between the lines: - The investment surge suggests policy support is working, but the output gap shows that capital alone does not guarantee industrial competitiveness. - Uzbekistan’s biggest challenge appears to be moving from assembly and import dependence toward a full production base with local components and verified quality. - The country’s export ambitions will depend on whether manufacturers can prove reliability, service support and cost competitiveness beyond the domestic market. - Lebedeva said access to financing and large contracts should not depend mainly on administrative factors, because that weakens incentives to reduce costs and improve efficiency.

What’s next: - The next few years will show whether Uzbekistan can convert large-scale investment into sustained productivity growth. - Success will depend on cheaper production, deeper localization of complex parts and stronger certification systems. - The sector’s regional role could expand if Uzbek equipment becomes competitive in Kazakhstan, Kyrgyzstan, Tajikistan and other nearby markets. - The key test is whether new factories can compete on quality and efficiency, not just on the number of facilities opened.

The bottom line: - Uzbekistan has built momentum in electrical engineering. The next phase is proving that investment can create globally competitive manufacturing, not just more production lines.