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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EU’s Central Asia Representative Reaffirms the Union’s Commitment to the Region

Teri Hakala, Special Representative of the European Union for Central Asia, has recently spoken about the EU’s goals for its presence in the Central Asian region, and plans for the coming years.

Speaking at the conference, “Turkmenistan and the EU: 30 years of cooperation”, Ms Hakala said: “The EU has a very strong presence in the Central Asian region. And our goal is to contribute to the development and welfare of these countries and sustainability. In the next 30 years we plan to continue our work in Turkmenistan and in other Central Asian countries, partners, for the benefit of these countries and the EU.”

She also spoke about the EU-Central Asia Transport Investment Forum, which was held in Brussels earlier this year. “In January, the EU organized an investment forum and in March too there were discussions about our commitment and obligations related to the allocation of $10 billion from the EU for the Trans-Caspian Corridor project, which will help to expand trade relations, to include more and more people in their activities. This will contribute to the expansion of not only the transport corridor, but also the energy corridor,” Ms Hakala added.

The Trans-Caspian Transport Corridor is a route connecting Europe and Central Asia. It is expected that once complete, cargo will be delivered along it in just 15 days.

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UNDP Launches Project in Turkmenistan to Help Women and Young People Find Jobs

The United Nations Development Program (UNDP) in Turkmenistan, in partnership with the UNDP Knowledge Project, is joining the global FutureSkills4All initiative to increase employment opportunities for women and young people in the country.

According to Turkmenportal, this initiative will involve at least 660 people from Turkmenistan. They will have access to the cutting-edge online learning platform Coursera, where they will be able to complete various training programs to acquire in-demand professional skills.

In addition to accessing online courses, learners will also receive guidance and mentoring from local experts, to help them acquire interpersonal skills, such as resilience.

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Turkmenistan Plans to Create Powerful Bio-industry Sector

Turkmenistan intends to create a powerful bio-industry sector in all areas of biotechnology, Turkmenportal reports. President Serdar Berdimuhamedov signed a decree approving the State Program for comprehensive development of biotechnology in Turkmenistan for 2024-2028. Under the program, it is planned to implement priority innovation and investment projects, and widely deploy production in all sectors of bio-industry – from bio-pharmaceuticals to bio-chips.

“The country’s Academy of Sciences is already conducting topical developments in dozens of areas. In bio-pharmaceuticals, the medicinal properties of local plants are being studied. In food biotechnology, the production of fortified foods and drinks is underway. Agricultural biotechnology is being developed to increase crop yields. Scientists are working on biosensors and bio-chips for personalized medicine, bio-fuels and biodegradable materials. Microorganisms for soil bio-remediation are being studied. Turkmen know-how in the field of biotechnology is already attracting scientific interest in the world,” the outlet said.

The Presidential Decree also provides for a plan of measures to implement the State Program, which will be implemented by the Academy of Sciences of Turkmenistan, relevant ministries and departments. The main purpose of the new document is to integrate science into the development of different sectors of the economy, stimulate the production of environmentally-friendly, energy-saving, import-substituting and export-oriented goods, and the formation of a competitive national bio-industry in the future.

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Kyrgyz Writer Oljobai Shakir Sentenced to Five Years in Prison

On 14 May, the Alameda District Court of the Chui Oblast in Kyrgyzstan sentenced 52-year-old activist and writer Oljobai Shakir to five years imprisonment for inciting mass riots on social media against the government.

At the previous hearing, Shakir a frequent and popular blogger, pleaded not guilty to the charges of slander and argued that the aim of his posts was to encourage open dialogue  between the country’s leadership and its people on how the government is run.

During the trial, the writer’s lawyer, Akmat Alagushev, demanded the acquittal of his client and announced his intention to appeal.

Olzhobai Shakir has been held in the pre-trial detention center of the SCNS since August 2023 on account of the “provocative nature” of material he posted on Facebook, TikTok and YouTube. Throughout his incarceration, the writer has denied the validity of the criminal charges against him.

Renowned for his critical statements against the authorities, Shakir was arrested shortly after he had publicly scrutinized the government’s controversial transfer of four hotels on the shores of Lake Issyk-Kul to Uzbekistan. In a period when the government is increasingly clamping down on political opposition through social media, neither President Sadyr Japarov nor GKNB head Kamchybek Tashiev accepted Shakir’s invitation to be interviewed on the issue.

Shakir is a well-established author and supporter of contemporary Kyrgyz literature, but like his activities on social media, his own work at times has proved highly controversial. Published in 2021 in a country where open discussion of LGBT+ rights is still taboo, his novel “Adam+” caused public outcry by relating the emotional challenges he faced during his daughter’s transgender transition.

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Image: TCA, Aleksandr Potolitsyn

Large-Scale Cyberattacks on Kazakhstan Continue

Leaks of millions of citizens data, attacks by hackers, hourly calls from fraudsters – these are just some of the threats which have faced Kazakhstan over the past few months. Following the resignation – or dismissal depending on which source one believes – of the head of the Ministry of Digital Development, Innovation and the Aerospace Industry, Bagdat Mussin, many wonder whether the authorities will be able to secure Kazakhstan’s internet. The Times of Central Asia investigates.

On May 9, AlmaTV, Kazakhstan’s largest internet and cable TV provider, suffered an attack by hackers which caused disruption to its’ services. “According to data received… the cause of the disruption was a large-scale and multi-level cyberattack,” AlmaTV stated. The outage solely affected internet broadcasting, whilst analog, digital and satellite TV services were working normally.

According to numerous sources, the broadcast of the Victory Day military parade in Moscow was interrupted by footage of an anti-Russian nature, alleged torture, and other explicit content. Officials in Kazakhstan have yet to commented.

This is not the first scandal in the sphere of cybersecurity. In March of this year, the State Technical Service JSC discovered that personal data pertaining to over two million clients of the microfinance organization, zaimer.kz (MFO Robocash.kz LLP), had been compromised. Warnings about the leak were also received by people who had never used the company’s services. In the opinion of many analysts, the reaction of the Ministry of Digital Development, Innovations and the Aerospace Industry was extremely late in coming, extremely vague, and in no way reassured Kazakhstanis about the safety of their private information. Mussin was accused of making excuses, poor-quality communication, failing to answer questions, and “babble talk.”

In addition, back in February, foreign media, in particular CyberNews, reported that in leaked Chinese Government documents, data belonging to residents of Kazakhstan was found. The documents were related to spyware developed by the Chinese information security company, iSoon, and targeted social media platforms, telecommunications companies, and other such organizations.

Allegedly, unknown assailants have posted a huge number of PRC government documents on GitHub. The information circulated also revealed sensitive data pertaining to several telecom operators in Kazakhstan.

Also in February, a shocking statement by the Center for Analysis and Investigation of Cyberattacks (TSARKA) appeared, according to which a Chinese hacker group controlled the critical facets within Kazakhstan’s IT infrastructure for almost two years. “On February 16, 2024, unknown persons published on the GitHub resource a leak of secret data from the Chinese company iSoon (aka Anxun), one of the contractors of the Chinese Ministry of Public Security (MPS). It is reported to be associated with Chengdu 404, a structure controlled by Chinese cyber intelligence known as APT41,” TSARKA said.

“The attackers’ goal was both general information, such as databases, and targeted information of specific individuals: control of correspondence, calls and movement. Data analysis showed that the volume of stolen information is measured in terabytes.”

The hackers managed to gain control over the event logs, call durations, IMEIs of devices, and call billing details of the operators. Additionally, they exposed user data from local internet providers IDNET and IDTV, alongside information from the Unified Savings Pension Fund and Air Astana.

“This is just the tip of the iceberg,” TSARKA stated. “No one knows how many undetected hackers and leaks of our data there are.” The Ministry of Digital Development said the National Security Committee has now joined the probe.

Stories about the leaks of personal information of can be found on news feeds almost daily, which causes justifiable indignation among citizens, Majilis Deputy, Ekaterina Smyshlyayeva commented. “It is alarming how the quality of information, and the degree of confidentiality is changing. If earlier it was about addresses and phone numbers, today, medical data, banking information, i.e., information that is secret are leaked using the same schemes. At the same time, the legislative basis of information protection in our country complies with international standards,” Smyshlyayeva explained to a parliamentary inquiry.

“Given the introduction of state control, the volume of work will increase many times over. At the same time, the participation of state bodies in the protection of their own data and even secrets cannot be called fully-fledged. This is a serious problem, because correct laws with weak implementation do not guarantee protection, and their presence creates a dangerous illusion of order,” the deputy added. Smyshlyayeva proposed that the number of staff working in authorized bodies for personal data protection be increased, or services be redistributed, possibly with their transfer to a competitive environment to accredited organizations in the field of information security.

Following Mussin’s ousting, on May 6 Zhaslan Madiyev was named as the new Minister of Digital Development, Innovation and the Aerospace Industry. However, threats from foreign fraudsters and hackers continue to multiply at an alarming rate. So far, only one major operation to catch fraudsters has been carried out, and law enforcers simply do not have time to block calls. Thus, the number of threats in Kazakhstan’s information sphere continue to grow.

As previously reported by TCA, over an eight-day period in April 2024 alone, a deluge of stories containing rumors about Kazakhstan’s foreign policy permeated regional media. These included accounts claiming that the U.S. was hyping an alleged voice recording of a Russian official claiming that Kazakhstan is Russia’s next target; that Kazakhstan is in covert discussions to join NATO; and that Kazakhstan is seeking security guarantees from China to counterbalance the Russian threat. As noted in a U.S. Department of Homeland Security Threat Assessment, a story claiming that the United States is “running a lab in Kazakhstan to create biological weapons for use against China” has also been circulating for some time.

 

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