Azerbaijan Combines KOBIA and AZPROMO to Boost Economy

President Ilham Aliyev

President Ilham Aliyev has approved the merger of two important economic groups in Azerbaijan to improve how things are run and strengthen the non-oil part of the economy. The Small and Medium Business Development Agency (KOBIA) and the Export and Investment Promotion Agency (AZPROMO) will now be one organization called the Agency for Small and Medium Business Development, Investment, and Export Promotion.

This new agency, which will be managed by the Ministry of Economy, is meant to make economic growth easier. By combining support for small businesses with efforts to increase foreign investment and exports, the government hopes to create a more united environment for business owners. The agency will have 370 employees, with most working in the main office and others helping businesses in different regions.

KOBIA was created in 2017, while AZPROMO became what it is today in 2021, after starting as a fund in 2003. This merger is part of a larger effort to improve management. Last week, about ten other public groups were combined to streamline management across the country.

The government says this change is needed to modernize management, but some experts believe there are deeper economic reasons. Because Azerbaijan's oil production, which is the main source of income, is unstable, the government is looking for ways to cut costs. Some analysts worry that these mergers, while reducing bureaucracy, could also increase unemployment as some jobs are lost during the change.

The Cabinet of Ministers has three months to finalize the new agency's plans and structure. Until then, KOBIA and AZPROMO will continue their work to make sure businesses continue to receive support.