World Bank announces additional financing to scale up Azerbaijan’s employment support program

The World Bank’s Board of Executive Directors has approved an additional $150 million in financing to expand the Azerbaijan Employment Support Project (AESP).

This initiative aims to assist vulnerable populations, including internally displaced persons, women, youth, and the long-term unemployed, by fostering self-employment opportunities, News.Az reports citing WB.

Over the past three years, 15,000 beneficiaries, of whom more than 5,000 were women, have received asset packages to start their businesses. According to a beneficiary assessment, over 70% of AESP participants have stayed in business 24 months after receipt of project-provided assets. Building on this success, the financing approved today will scale up existing employment programs and services and adapt and pilot others to serve even more people and promote the sustainability of businesses under AESP.

The additional financing will continue supporting Azerbaijan’s Self-Employment Program (SEP) by expanding its outreach to new sectors such as manufacturing and services to promote diversification of economic activity and resilience against shocks. Furthermore, this financing will provide an opportunity to pilot an improved cash-based grants scheme, which will allow beneficiaries to utilize funds to expand their businesses.

The additional financing for AESP will also improve the capacity of the Azerbaijan Public Employment Agency to expand its range of services and programs for jobseekers. Through this new support the agency will implement additional active labor market measures, such as on-the-job-training, wage subsidies, an apprenticeship program, vocational training development, and certification fee reimbursement for selected occupations. These programs are expected to stimulate the employment of jobseekers, including women and other vulnerable populations, and increase their employment opportunities in manufacturing and services sectors.

The AESP is expected to advance Azerbaijan’s key development priorities by raising human capital potential and increasing the effectiveness of employment services, skills enhancement, and inclusiveness. The project aligns with the World Bank Group’s Country Partnership Framework for Azerbaijan (2025–29), which focuses on promoting more productive and inclusive jobs, a priority currently under discussion with the government of Azerbaijan.

News.Az