15 May 2024

Kazakhstan - Vietnam economic cooperation

Kazakhstan, Kazakhstan International Affairs, Kazakhstan Business & Economy

Kazakhstan and Vietnam Look to Expand Economic Cooperation

Potential areas for increasing trade between Kazakhstan and Vietnam were discussed on May 15 by the Minister of Industry and Construction of Kazakhstan, Kanat Sharlapaev and the Minister of Industry and Trade of Vietnam, Nguyen Hong Dien.

The parties noted that trade turnover between the two countries amounted to US $979 million in 2023, including $958 million in the trade of industrial products. From January-March 2024, bilateral trade reached $229 million.

The Vietnamese side expressed interest in developing mineral deposits in Kazakhstan, as well as engaging in cooperation in the chemical industry.

In turn, the Kazakh minister echoed the high potential for industrial cooperation between the two countries.

Other sectors earmarked for cooperative development included the production of equipment for light industry, mechanical engineering, energy, agriculture, and food production.

 

 

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Times of Central Asia

15 May 2024

IFC supports Central Asia's tech industry

Central Asia, Home, Life & Culture, Business & Economy

IFC Supports Tech Start-ups in Central Asia

On 14 May, the International Finance Corporation (IFC), a member of the World Bank Group, announced plans to invest up to $5 million in Sturgeon Emerging Opportunities II.

Managed by Sturgeon Capital, the new venture capital fund will be used to promote digital economies and support the development of early-stage tech start-ups in Central Asia.

Sturgeon Emerging Opportunities Fund II will focus on start-ups in areas such as fintech, business-to-business platforms, agri-tech, health-tech, and ed-tech and help emerging entrepreneurs scale up their businesses, improve operational efficiency, and create long-term employment opportunities in the regions.

Although concentrated in Central Asia, there is scope for additional investment to be made in emerging markets elsewhere including, Egypt and Pakistan.

Sturgeon Capital estimates that the tech start-up industry has the potential to generate nearly $300 million in annual digital revenue for associated countries by 2030, benefiting more than half a billion citizens. Local tech start-ups, however, often have difficulty in raising capital to launch and expand their products and services.

Wiebke Schloemer, IFC’s Director for Türkiye and Central Asia, commented that whilst venture capital is gaining traction across Central Asia, it is still a nascent market underserved by foreign investments, and stated: “By investing in funds like Sturgeon, IFC aims to bring much-needed capital to the most innovative local businesses. This support will enable them to scale and pave the way for more institutional and private investors, replicating the successes we have seen in other regions.”

 

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Times of Central Asia

15 May 2024

photo: Uzbekistan Ministry of Transport

Central Asia, Home, Uzbekistan, Uzbekistan Home, Uzbekistan Life & Culture

Uzbekistan to Launch New International Bus Routes

Uzbekistan’s Transport Ministry has announced plans to launch ten new international bus routes during this year.

The new routes will connect Samarkand and Bukhara with Kyrgyzstan’s capital Bishkek; Bukhara with Kazakhstan’s capital Astana; Samarkand, Bukhara and Shakhrisabz with Turkestan in Kazakhstan; Samarkand and Bukhara with in Tajikistan’s capital Dushanbe, and Tashkent with Ufa and Krasnodar in Russia.

Uzbekistan currently runs 196 buses operated by 32 domestic and foreign companies,on 37 routes to Russia, Kazakhstan, Kyrgyzstan, and Tajikistan.

From January-April 2024, 173 thousand passengers travelled on international bus routes, 15% more than during the same period in 2023.

 

 

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Times of Central Asia

15 May 2024

EuroChem & CNCEC sign contract for fertilizer plant

Kazakhstan, Kazakhstan International Affairs, Kazakhstan Business & Economy, Kazakhstan Home

Major Mineral Fertilizer Production Plant Planned for Kazakhstan

EuroChem, a global fertilizer leader and China National Chemical Engineering Co. (CNCEC), a global provider of industrial engineering technologies are to collaborate on the design, construction, and commission of a large-scale chemical complex to produce mineral fertilizers in Zhanatas located in Kazakhstan’s Zhambyl region.

The agreement was officially signed on 14 May in Astana.

Scheduled to open in 2027, the construction of  the chemical complex is part of the Integrated Kazakhstan Industrialization Roadmap and represents the third and final stage of a project in which EuroChem has invested over US$1 billion.

EuroChem Group President Oleg Shiryaev said that once in operation, the plant will have an annual output of over one million tons of mineral fertilizers, in high demand by Kazakhstan, other Central Asian countries, China, Russia and Europe.

According to a report by the Kazakh Ministry of Industry and Construction, the new enterprise will create 2,400 new jobs.

During the signing of the agreement, Minister of Industry and Construction of Kazakhstan Kanat Sharlapaev, welcomed the input of  world leaders in mineral fertilizer production as an important step in developing the country’s chemical industry and emphasized: “To be truly food secure, fertilizers are a must. This is therefore a landmark project for us. Its joint implementation with EuroChem and Chinese partners is a great example of large Eurasian cooperation at its best and a significant event for regional food security.”

 

 

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Times of Central Asia

15 May 2024
Central Asia, Uzbekistan, Turkmenistan, Tajikistan, Tajikistan Business Economy, International Affairs, Local Politics, Turkmenistan Business & Economy, Kyrgyzstan, Business & Economy, Uzbekistan Business & Economy, Kazakhstan, Kyrgyzstan Business & Economy, Kazakhstan Business & Economy

Tajikistan To Reconnect To Central Asia’s Unified Energy System

Tajikistan will soon connect itself to Central Asia’s unified energy system.

The unified system for energy distribution was created in 1960, when the systems of Uzbekistan, southern Kyrgyzstan, northern Tajikistan and southern Kazakhstan’s Shymkent junction were connected to work in parallel through 110- and 220-kV power lines. This system operated in isolation from the Soviet Union’s general scheme.

In 2003 Turkmenistan left the energy system, having decided that it was able to provide itself with electricity on its own. And in early November 2009, the entire southern part of the Tajik energy system was automatically de-energized due to a spontaneous shutdown of units at the Nurek HPP. Tajikistan and the south of Uzbekistan remained without electricity for a day. After that Uzbekistan announced its withdrawal from the energy “ring”.

After that Uzbekistan completely de-energized the lines connecting its energy system with the Tajik system. As a result, Tajikistan’s energy system automatically remained isolated from the rest of the region. Thus, the system ceased to exist as such in 2009, but was recreated again in 2019. Currently, it includes Kazakhstan, Uzbekistan, and Kyrgyzstan.

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Times of Central Asia

15 May 2024
Central Asia, Uzbekistan, Turkmenistan, Tajikistan Business Economy, Tajikistan, International Affairs, Turkmenistan Business & Economy, Kyrgyzstan, Business & Economy, Kazakhstan, Uzbekistan Business & Economy, Kazakhstan Business & Economy, Kyrgyzstan Business & Economy

IFC to Support Central Asian Tech Startups With New Fund

The International Finance Corporation (IFC) is allocating $5 million to a new fund that will be used to support technology startups in Central Asia, Gazeta.uz reports.

IFC is reportedly investing in Sturgeon Emerging Opportunities, a new venture capital fund managed by Sturgeon Capital, a major venture capital investor in emerging markets.

Sturgeon Emerging Opportunities will focus on supporting startup projects in areas such as fintech, business-to-business platforms, agri-tech, healthcare and education.

The investment in Sturgeon is part of IFC’s Startup Catalyst program, which aims to address financial challenges in undervalued venture capital ecosystems by investing in incubators, gas pedals and funds in emerging markets.

“The fund will help start-up entrepreneurs to expand their businesses, improve operational efficiency and create long-term employment opportunities,” the statement said.

Besides investing  in projects in Central Asia, the fund also intends to work in other emerging markets such as Egypt and Pakistan.

Sturgeon Capital estimates that the IT startup market in these countries could generate nearly $300 million in annual digital revenue by 2030. However, startups in these countries are currently struggling to raise capital to launch and scale their products and services.

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Times of Central Asia