Private sector increases its share in Azerbaijan's economy

By Azernews

By Ofeliya Afandiyeva

Azerbaijan is taking important steps to develop the non-oil sector of its economy.

The volume of domestic products by the private sector, including enterprises, organizations and individual entrepreneurs, was $38.4 billion in the period of January-October, which is 2.1 percent higher compared to the same period in 2018, President of the National Confederation of Entrepreneurs (Employers) Organizations of Azerbaijan (ASK) Mammad Musayev has said.

Musayev made the remarks in the seminar on “Mobilizing Involvement and Investment of the Private Sector in Implementing Sustainable Development Goals (SDGs) in food and agriculture in Azerbaijan” organized by the Food and Agriculture Organization of the United Nations (FAO) in Baku on December 17.

Musayev emphasized that agriculture plays an important role in diversifying the economy and eliminating oil dependency. The value added in the non-oil sector of the economy rose 3.5 percent this year. Agriculture accounts for 6.2 percent of the value added.

The actual cost of agriculture in January-October 2019, amounted to $4 billion, of which $2 billion fell to animal husbandry and $2.05 billion to crop production, the president of ASK underlined.

He underlined entrepreneurs’ role in Azerbaijan's economic development.

“Azerbaijan’s development is based on free market economy. Azerbaijan successfully fulfills the goals of sustainable development. The country has created ample opportunities for the development of agriculture," Musayev stated.

Note that the seminar was aimed at raising awareness about the 2030 Agenda for Sustainable Development among the private sector and facilitating a discussion between government and private sector on their role and involvement in SDGs implementation in Azerbaijan.

Moreover, participants of the event exchanged knowledge and best practices from the region on the integration of SDGs in private sector business models and sustainable reporting, as well as ways to mobilize national private sector engagement in areas of joint interest with a specific focus on climate change and nationally-determined contributions.

The event brought together 150 participants representing the government agencies, international organizations, private sector and civil society.

Agriculture plays a vital role in catalyzing growth and sustainable development in Azerbaijan, especially in rural areas, employing a large segment of the population. It is the third largest sector in the country after the oil industry and construction. The food sector also takes a significant segment of the non-oil industry providing 32 percent of total production. The country increased its agriculture production by 11 percent in 2019.