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Bridging Borders: Louis Albertini on Central Asia’s Tech Growth, Startup Challenges, and Building Global Connections

Louis Albertini has been involved in technology and startups across the United States and Kazakhstan for a decade, working with Silicon Valley and venture capital-backed startups based in Kazakhstan, including ORBI and Farel. He is passionate about supporting founders in succeeding in the U.S. market and building connections between the U.S. and Kazakhstan. TCA spoke with Louis to gain insights from his experiences in the Kazakhstan market. TCA: Can you share your career journey in Kazakhstan and what motivated you to work in diverse roles like marketing, consulting, and startups? Louis: I arrived in Kazakhstan in July 2015 as a Princeton in Asia fellow and spent a year working in the President's Office at KIMEP University with Dr. Chan Young Bang. I served as his communications officer, writing official correspondence, liaising with different departments, and managing the day-to-day affairs of the office. After my PiA fellowship ended, I decided to stay in Almaty and start exploring the nascent startup scene. In 2016, I joined the founding team of a startup called ORBI, which developed 360-degree video recording glasses. This was the first Kazakhstani startup that attracted significant venture financing and was invited to interview at Y Combinator in 2016. We raised about $7 million for the company and secured $350 thousand in pre-orders, the largest ever for a Kazakh start-up. Back then, the YC batches were extremely small, and interviews were conducted in person at their historic but now-closed 320 Pioneer Way office in Mountain View. This was my first applied experience with Kazakhstan startups, and I've been involved ever since. TCA: What inspired you to create Redfern Partners, and how did you help address the challenges SMBs and tech companies face in Central Asia? Louis: Working at the American Chamber of Commerce gave me some insight into the market research landscape in Kazakhstan, primarily by listening to business leaders complain about available options. Besides the major consulting firms like McKinsey and BCG, which are more focused on quasi-state projects that need stamps of approval, the SMB space for high-quality independent research was largely empty. The Big 4 have variations of market research services, but their core specialty is audit and tax. Most local incumbents were formed in the early 1990s and use outdated methodologies that produce inaccurate or trivial insights. International research firms lack local coverage and rely on a loose patchwork of freelancers. Redfern was formed to offer high-quality, independent market research services to fill this void. We completed about twenty projects and continue to be a partner for the European Bank for Reconstruction and Development (EBRD) small business initiative. TCA: What common mistakes did you see SMBs in the region make, and how did you help them overcome these? Louis: The SMB space in Kazakhstan is hugely underserved and overlooked, offering the largest surface area regarding technology adoption. In the US, SMBs employ nearly half of the American workforce, representing 45% of America's GDP. In Kazakhstan, the market is mainly asymmetrical, with large players...

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Kazakhstan to Train Workforce for Future Nuclear Power Plants

Kazakhstan’s first nuclear power plant (NPP) is expected to create permanent employment for approximately 2,000 people, with an additional 10,000 workers involved during its construction. This announcement was made by Energy Minister Almasadam Satkaliyev during a recent government meeting. The country plans to commission its first NPP by 2035. A shortlist of potential builders includes four international companies: China’s CNNC, Russia’s Rosatom, South Korea’s KHNP, and France’s EDF. Authorities have also suggested the possibility of forming a consortium involving multiple countries to leverage diverse technological solutions. Alongside these efforts, Kazakhstan intends to independently train the specialists required for NPP operations. Minister Satkaliyev highlighted plans to establish specialized training programs in domestic colleges to develop skills for roles such as dosimetrists, steam turbine equipment mechanics, nuclear power plant maintenance and repair specialists, and IT specialists for nuclear facilities. Practical training will be conducted at the National Nuclear Center and the Institute of Nuclear Physics. “By 2030, the NPP construction project will create around 5,000 jobs, peaking at approximately 10,000 jobs in 2032. Once operational, the first plant will provide at least 2,000 permanent positions,” Satkaliyev stated. As previously reported by The Times of Central Asia, Kazakhstan is accelerating the construction timeline for the NPP, located in the Almaty region, and plans to select a contractor in the first half of this year. During the government meeting, which coincided with the “Year of Working Professions” initiative, Satkaliyev also addressed the broader labor demand in Kazakhstan’s energy sector. The industry is expected to require over 16,000 additional workers, including power engineers, welders, fitters, gas cutters, and electricians, by 2030. The country’s energy sector currently employs 303,000 people across 1,600 enterprises, with 99 new projects planned over the next five years. To attract and retain talent, the Ministry of Energy aims to achieve an annual 15% wage increase for production personnel in energy-producing companies. Meanwhile, Talgat Yergaliyev, Chairman of the Union of Builders of Kazakhstan (UBC), has called for simplifying the hiring process for foreign labor to address workforce shortages in Kazakhstan’s construction sector.

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Uzbekistan Ranked Second in Global Gold Purchases in November 2024

The Central Bank of Uzbekistan significantly increased its gold reserves in November, marking its first gold purchase since July 2024, according to Spot and data from the World Gold Council (WGC). Global central banks collectively made net gold purchases of 53 tonnes in November, continuing the strong buying trend observed throughout 2024. The WGC noted that the decline in gold prices, partly influenced by the U.S. presidential elections, may have further encouraged gold accumulation by regulators. Leading the list of gold buyers was the National Bank of Poland, which added 21 tonnes to its reserves, bringing its total to 448 tonnes. Poland also emerged as the largest buyer of precious metals in 2024, purchasing 90 tonnes over the year. The Central Bank of Uzbekistan ranked second globally in November, purchasing 9 tonnes of gold. This marked its first increase in gold reserves since the summer and brought its annual net gold purchases to 11 tonnes. As of the end of November, Uzbekistan’s total gold reserves stood at 382 tonnes. The Reserve Bank of India ranked third with 8 tonnes purchased in November and 73 tonnes accumulated throughout the year. Other notable buyers included Kazakhstan and China (5 tonnes each), Jordan (4 tonnes), Turkey (3 tonnes), the Czech Republic (2 tonnes), and Ghana (1 tonne). Singapore was the largest seller of gold during the month, offloading 5 tonnes. As previously reported by The Times of Central Asia, Uzbekistan’s international reserves experienced a decline in November. The Central Bank of Uzbekistan reported a $1.7 billion drop, or approximately 3.9%, reducing total reserves to $41.5 billion as of December 1.

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Every Third Kazakhstani Works Informally or Hides Their Income

Approximately one-third of working Kazakhstanis are employed informally, lacking social guarantees, labor protections, and pensions. This is according to the research “Features of Labor Market and Employment in Kazakhstan” by Adam Research. The findings, analyzed by the Energyprom agency, shed light on the scope of informal employment in the country. The survey revealed that 36.4% of respondents acknowledged working in the shadow economy. This figure is higher among men (37.6%) than women (34.9%). Informal employment is categorized into three main types: Work without a labor contract: 16.6% Shadow entrepreneurship: 13.6% Part-time work without registration: 6.2% Young people and retirees are disproportionately represented in these informal sectors. The study, conducted via telephone survey of adults in all 17 regions of Kazakhstan, found that southern areas like the Turkestan and Almaty regions, along with Shymkent, had the highest rates of informal employment. Conversely, East Kazakhstan and Ulytau regions recorded the lowest rates. Informal workers are often individuals with secondary education working outside their specialty. Their earnings vary widely: Those without labor contracts typically earn up to 100,000 tenge ($190) per month. Shadow entrepreneurs may earn over 600,000 tenge ($1,130). Many struggle financially. Among respondents paid “in envelopes,” nearly 27% reported insufficient income for basic necessities. The Bureau of National Statistics of Kazakhstan reported 1.2 million informally employed citizens in 2023. Of these: 682,500 worked in legal enterprises without formal registration. 473,200 were employed in the informal sector without patents or tax payments. This group constitutes 12.8% of Kazakhstan's total employed population. Labor Minister Svetlana Zhakupova identified informal employment as the second most significant labor market challenge, after job scarcity. She highlighted discrepancies between official labor remuneration fund data and pension savings. In 2023, the labor remuneration fund was valued at 38 trillion tenge, yet pension contributions accounted for only 20 trillion tenge. Additionally, labor remuneration makes up just 30% of Kazakhstan’s GDP, significantly lower than the OECD average of 50%. The largest discrepancies were observed in the trade, agriculture, and real estate sectors.

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Cabotage Transportation in Eurasia: Expanding Connectivity, or Creating Unequal Conditions?

Freight transportation by road is the most popular and versatile type of shipping due to its mobility, flexibility, and accessibility. This sector is expected to undergo significant changes in Kazakhstan and other member states of the Eurasian Economic Union (EAEU) starting in 2025. However, industry experts warn that these changes could lead to domestic market losses for Kazakhstani participants. Starting January 1, 2025, transportation companies from EAEU member states will be allowed to carry out cabotage transportation -- shipment of goods between two places in the same country -- within Kazakhstan. This means that foreign carriers will be permitted to perform up to three domestic deliveries in the country following their international shipment. For example, a Russian truck delivering goods to Almaty may complete up to three cabotage shipments within Kazakhstan between cities over seven days on its return route. However, experts suggest this measure could lead to domestic international road carriers losing their market share to foreign operators from Russia and Belarus, who are currently limited by sanctions. According to Ivan Yanson, director of the representative office of the Union of International Road Carriers of the Republic of Kazakhstan in Astana, currently, Belarus has about 40,000 vehicles engaged in international freight transportation, and Russia has a similar number. Meanwhile, Kazakhstan's fleet consists of approximately 15,000 trucks. This discrepancy in fleet size is a key factor influencing competitiveness. Another critical issue is the average age of Kazakhstan’s fleet, which exceeds 20 years. However, high wear and tear and the need for modernization are hindered by the high cost of tractor-trailers, recycling fees, and registration charges, which are often unaffordable for Kazakhstani entrepreneurs. In light of this, local carriers have repeatedly proposed postponing the decision to open Kazakhstan’s market to cabotage. Meanwhile, the development of cabotage in EAEU countries is part of the Union's Transport Policy for 2024–2026. Lawmakers believe these measures aim to expand trade connections and attract new companies. They argue that cabotage liberalization will help reduce empty mileage for EAEU road carriers, thereby lowering freight transportation costs. Kazakhstan's Ministry of Transport also emphasizes that opening the cabotage market will not cause financial or other negative consequences for domestic businesses. According to Deputy Minister Maksat Kaliakparov, carriers will only be allowed to perform up to three consecutive domestic shipments within another EAEU member state using the same vehicle, ensuring equal access for all. Currently, Kazakhstan is conducting internal procedures to amend its road transport legislation to align with the phased liberalization program for cabotage freight transportation, which began on January 1. “These amendments to national legislation are expected to be adopted in the first half of this year,” stated a government representative. The anticipated outcomes include fostering competition in the road transport services market, modernizing the truck fleet, establishing uniform conditions and rules for freight transport services within the EAEU, improving vehicle efficiency for international freight transport, and reducing environmental impact by using modern vehicles. Nevertheless, the effects of these legislative changes cannot be fully assessed until they are...

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Kyrgyzstan Aims to Integrate Cryptocurrencies with Licensed Crypto Banks

Kyrgyzstan’s Ministry of Economy and Commerce has submitted a draft law titled "On Amendments to Certain Legislative Acts of the Kyrgyz Republic in the Sphere of Virtual Assets" to the country’s parliament. The proposed legislation aims to establish licensed crypto banks to provide regulated banking services related to digital assets and cryptocurrencies. The Ministry emphasized the urgency of integrating crypto assets into Kyrgyzstan's financial system, citing the rapid growth of digital technologies and cryptocurrencies. In its commentary on the bill, the Ministry stated: “Given the rapid development of digital technologies and cryptocurrencies, the creation of a crypto bank is an urgent necessity for the integration of crypto assets into the traditional financial system of the country. A crypto bank will ensure safe, regulated, and convenient interaction of citizens and businesses with cryptocurrencies.” The Ministry identified several key goals for the proposed crypto bank: To legalize and regulate the cryptocurrency market by establishing clear rules and standards. To increase trust in crypto assets while ensuring the protection of users’ rights. To mitigate risks of fraud and unauthorized access to funds. The Ministry also highlighted the potential economic benefits of introducing a crypto bank. Legalizing cryptocurrency transactions would increase transaction volumes and boost tax revenues. Additionally, the initiative is expected to create new jobs in the fintech sector, positioning Kyrgyzstan as a regional hub for financial innovation. Kyrgyzstan already taxes cryptocurrency mining, with a rate of 10% applied to electricity costs for mining activities. This rate includes VAT and sales tax. From January to November 2024, Kyrgyzstan collected 46.6 million KGS (approximately $537,000) in cryptocurrency mining taxes, nearly half the total collected in 2023, according to the Ministry of Finance. While public interest in cryptocurrencies is growing among individuals and businesses in Kyrgyzstan, the market remains poorly regulated. The Ministry believes that a licensed crypto bank will address these challenges, increasing transparency, trust, and financial security. By adopting this legislation, Kyrgyzstan seeks to modernize its financial system and embrace emerging opportunities in the digital economy.