Unlocking Risk Capital in the Middle Corridor
At the 10th CAREC Think Tank Development Forum in Tashkent on August 20, 2026, PMCG President Alex Aleksishvili highlighted a central challenge for the Middle Corridor: physical infrastructure alone is not enough. The region also needs diverse and well developed financial systems that can turn better connectivity into private investment, business growth, and wider economic benefits.
Speaking on “Unlocking Risk Capital in the Middle Corridor,” Aleksishvili argued that the corridor needs two types of infrastructure. The first is physical: roads, railways, ports, logistics hubs, energy networks, and digital links. The second is financial: the capital, instruments, and institutions that allow businesses to invest and grow.
Turning Connectivity into Investment
The Middle Corridor has strong growth potential.
According to World Bank estimates presented by Aleksishvili, the right investments and efficiency improvements could triple trade flows along the corridor and cut travel times in half by 2030. Trade among Azerbaijan, Georgia, and Kazakhstan could increase by 37%, while their trade with the European Union could rise by 28%.
This growth creates demand for much more than major transport infrastructure.
Railways need terminals, rolling stock, and warehouses. Ports need logistics and processing facilities. Energy networks support new generation and industry. Better digital links create demand for technology and data infrastructure.
Many of these investments cannot rely only on traditional bank lending.
Aleksishvili noted that financial systems across Central Asia and the South Caucasus remain heavily bank-dominated. The challenge is therefore not only a lack of capital, but also a lack of the right type of capital.
Private equity, mezzanine finance, private debt, and hybrid instruments can help fill this gap. They can provide longer-term and more flexible financing for businesses that want to expand, invest in fixed assets, or take on projects with higher levels of risk.
PMCG’s Work on Regional Trade and Connectivity
PMCG works closely with international financial institutions and development partners to advance regional trade, investment, and connectivity across Central Asia and the South Caucasus. Through ADB-supported CAREC initiatives, PMCG has contributed to trade facilitation, corridor development, regional policy dialogue, and Free Trade Agreement implementation. This regional experience is complemented by projects such as the U.S. Government-supported Trans-Caspian Trade Route initiative.
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