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Investor Presentaiton

TRANSITION REPORT 2021-22 SYSTEM UPGRADE: DELIVERING THE DIGITAL DIVIDEND COUNTRY ASSESSMENTS: AZERBAIJAN 03 Assessment of transition qualities (1-10) Competitive 10 8 6 Integrated Resilient 0 Inclusive Azerbaijan -Eastern Europe and the Caucasus ........ EBRD Well-governed Green Structural reform developments The government has outlined its main directions and priorities of sustainable socio- economic development until 2030. In February 2021 the president signed a decree on "Azerbaijan 2030: National Priorities for Socio-Economic Development", outlining a long-term framework of policies and reforms. The framework includes strengthening the connections between society, businesses and the state. It outlines the following key factors for economic recovery: effective and efficient management of the state's role in the economy via market-oriented reforms, bolstering private institutions, government-friendly business management and further liberalisation of trade practices. The Cabinet of Ministers is expected to prepare a draft strategy of socio-economic development in 2021-25 within nine months of the approval of "Azerbaijan 2030". The authorities are stepping up efforts to promote renewable energy. A new law on the use of renewable energy sources in the production of electricity, approved in May 2021, was signed by the president in July, together with a presidential decree on implementing the renewable energy law. The law outlines the regulatory framework for foreign investment and specifies incentives for investors in renewable energy source projects in Azerbaijan, including guaranteed off-take and connection, priority in transmission and distribution, and long-term land leases. Additional efforts in the past year to green the economy include publishing an in-depth review of the energy efficiency policy, which will be followed by a national action plan to enhance energy efficiency. There is more awareness of the need to enhance digitalisation of government services. In February 2021 a mobile application of the government portal "myGov" was launched to make public services more accessible. The Central Bank of Azerbaijan also continued its efforts to expand digital payments in the country. Strategic cooperation agreements and a memorandum of understanding were signed with Visa and MasterCard. These include initiatives to support key drivers accelerating the development of the payment market, introducing innovative payment solutions, increasing mobile payments, as well as expanding financial literacy and inclusion.
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