Business & Economy - The Times Of Central Asia

Viewing results 1 - 6 of 3437

EBRD

EBRD Invests $125 Million in Kazakhstan Railway Operator Eurobond

The European Bank for Reconstruction and Development is investing up to $125 million in a Eurobond issue by Kazakhstan’s national railway operator, Kazakhstan Temir Zholy (KTZ). The bond, with a total value of up to $1 billion, was listed on the London Stock Exchange, Kazakhstan Stock Exchange, and Astana International Exchange. The EBRD’s investment will help modernize passenger stations across Kazakhstan, supporting improvements in safety and operational performance. The upgraded stations are expected to offer higher throughput capacity, modern lighting, and significant enhancements for passengers with disabilities. According to the Kazakh Ministry of Transport, a large-scale reconstruction and modernization program covering 124 railway stations nationwide began in 2025. The initiative aims to improve convenience and accessibility for all passengers, including those with disabilities, and to bring Kazakhstan’s railway infrastructure in line with international quality and safety standards. Additional infrastructure upgrades financed by the bond will take place along the Trans-Caspian Corridor and are expected to support more sustainable rail transportation between Europe and Asia. The EBRD will also mobilize technical cooperation funds to help KTZ adopt international standards in passenger rail services, including measures to strengthen cybersecurity. KTZ owns and operates a 16,400-kilometer railway network and manages more than 1,700 locomotives, 46,800 freight cars, and 2,300 passenger cars. In the first quarter of 2026, KTZ transported approximately 3.2 million passengers. KTZ also transported 64.5 million tons of cargo in the first quarter of 2026, an increase of 360,000 tons compared to the same period last year. Domestic shipments accounted for 40.8 million tons, while exports totaled 23.7 million tons, up 2.2%.

Hydropower

Uzbekistan Plans $5.8 Billion Expansion of Hydropower Sector

Uzbekistan is planning a major expansion of its hydropower sector, with 73 new projects worth $5.8 billion scheduled for implementation between 2026 and 2032, officials said during a presentation to Shavkat Mirziyoyev. According to the briefing, the country aims to add 3.6 gigawatts of new generating capacity as part of efforts to diversify its energy mix. Currently, most of Uzbekistan’s electricity is produced from natural gas and coal, while hydropower accounts for only about 10-12%. Officials emphasized that Uzbekistan’s extensive water network, more than 150,000 kilometers of rivers, canals, and streams, represents a largely untapped energy resource. Expanding hydropower is seen as key to improving energy stability, reducing dependence on fossil fuels, and making more efficient use of water. The sector has already seen significant growth in recent years. The number of hydroelectric power plants has increased from 36 in 2017 to 100 in 2025, while installed capacity has risen from 1.6 gigawatts to 2.4 gigawatts. Among the projects discussed, the Upper Pskem hydropower plant in the Bostanlyk district stands out. With an investment of $365 million, it is expected to generate 160 megawatts of electricity and supply power to around 161,000 households. In the Fergana region, a 15-megawatt plant is planned in the Sokh district, which is expected to cover 71% of local electricity demand. Authorities also reviewed the potential for constructing 42 small hydropower plants in the Upper Tupalang area, which could add 541 megawatts of capacity and generate up to 1.9 billion kilowatt-hours annually. In addition, nearly 3,000 small and micro hydropower plants are planned, with a combined capacity of 164 megawatts. This year alone, 13 hydropower plants and one wind power facility are expected to come online, with a total capacity of 114 megawatts and annual generation of 537 million kilowatt-hours. A 20-megawatt wind project is also under construction in Bostanlyk with $28 million in grant funding. Officials said Uzbekistan is also considering the construction of three pumped-storage hydropower plants with a combined capacity of 1.4 gigawatts, which would help balance electricity supply and demand. The presentation highlighted ongoing efforts to modernize the sector through digital technologies. More than 3,500 monitoring devices have already been installed to track water levels, weather conditions, and infrastructure performance in real time. The plans build on earlier developments in the sector. Last year, Uzbekistan launched the first stage of the Naryn hydropower cascade, a project valued at over $428 million. The initial plant, built using domestic materials and equipment, produces 171 million kilowatt-hours annually and supplies electricity to around 430,000 households.

Agriculture

Chinese Firm Eyes Virus-Free Potato Production in Kazakhstan

Kazakhstan is in discussions with China’s Inner Mongolia Muland Agricultural Technology Co., Ltd over the establishment of a high-tech facility to produce virus-free seed potatoes, according to the Ministry of Agriculture. The proposal was reviewed during a meeting between Agriculture Minister Aidarbek Saparov and the company’s CEO, Wei Jinglong. Virus-free seed potatoes are cultivated using in vitro techniques that eliminate pathogens and diseases, improving varietal purity and significantly boosting yields. Specialists estimate that such methods can increase output by 30-50% compared with conventional seed tubers. Saparov said potato farming remains a strategically important sector of Kazakhstan’s agricultural industry. In 2025, potatoes were planted on 131,000 hectares, with total production reaching 2.8 million tons. “Developing a technologically advanced domestic seed production system is a key priority for the sector. It is about building a sustainable foundation for food security,” Saparov said. He added that expanding biotechnology and scaling up the production of virus-free planting material would help reduce dependence on imports and enhance the competitiveness of Kazakhstan’s domestic breeding programs. At present, 22 specialized farms in Kazakhstan produce original and elite seed potatoes. Biotechnological laboratories, including the Kazakh Research Institute of Fruit and Vegetable Growing, play a crucial role. The Chinese company has expressed interest in building a laboratory and greenhouse complex using advanced technologies to produce micro- and mini-tubers, drawing on its experience implementing similar projects. “The project envisions launching industrial-scale production of high-quality seed material and developing export potential targeting Central Asian markets,” the ministry said. Company representatives indicated they plan to begin implementation in the near term, with the first batch of seed material expected within a year. The Times of Central Asia previously reported that another Chinese firm, Snow Valley Agricultural Group Co. Ltd, is planning to build a deep-processing potato facility in Kazakhstan’s Pavlodar region.

Brain Drain

Opinion: Kazakhstan’s Human Capital Problem – How State Scholarships Are Building a Talent Pipeline for the West

Kazakhstan spends millions of dollars every year sending its brightest students to the world's best universities through two flagship programs: the Nazarbayev Intellectual Schools (NIS) and Bolashak. For NIS, the state invests millions with no public record of what becomes of its graduates once they enter foreign educational institutions. For Bolashak, the return figures look reassuring on paper, but only until one asks what happens the moment the obligation expires. For Kazakhstan’s economy, heavily reliant on oil and gas exports, human capital is what can bring the country to its goal of economic diversification through the ideas and skills that no natural resource can replicate. Students from Kazakhstan studying abroad, with access to the world’s best professors and cutting-edge technologies, are exactly the human capital the country cannot afford to lose. However, they are also the ones the government has been paying to send away without a sustainable retention strategy in place. Nazarbayev Intellectual Schools Founded in 2008, the Nazarbayev Intellectual Schools network offers an internationally recognized 12-year curriculum, directly compatible with many foreign university admissions systems. It also provides some of its students with grants covering the full cost of attendance. The state funds NIS generously: in 2023 alone, more than $37 million was invested into the network. The results are extraordinary: from 2010 to 2024, 654 students received offers from the top 100 universities in the world, with 32 of them from the Ivy League. However, which country these graduates end up in is a different question, and the available statistics offer no public answer to. One former NIS student, who received a full scholarship to study abroad, says, "I'm extremely grateful for all the resources that the NIS provided me with. However, after my graduation from the university, I will be moving to San Francisco to work as an AI engineer. It would take me at least seven years to make the same salary I'll be earning here in a year." Another says, "It is not only about the higher wages in the U.S. It’s about the opportunities and autonomy one gets. The research lab I've joined since graduation has far more funding and resources for the work I'm actually passionate about." Bolashak Program Unlike NIS, the Bolashak program, established in 1993 and widely regarded as one of the most generous scholarship programs in the world, does require its recipients to return. Graduates must work in Kazakhstan for up to four years or face financial penalties. On paper, this looks like a solution to the human capital problem. In practice, it is only a delay. While the state at least partially recovers its investment, it is developed markets that eventually inherit the talent. "After completing my requirement back home, I was able to get an American company to sponsor my visa," says one Bolashak recipient. "I moved to the U.S. shortly after." "I was offered a transfer to the European branch of my company," says another, one year after fulfilling their obligation. The Solution to the Brain...

Kazakhstan Develops AI System for Drilling Monitoring with Plans for Export

Kazakhstan has developed a domestically produced AI system for real-time monitoring of drilling operations and plans to promote it in international markets, Energy Minister Yerlan Akkenzhenov has announced. Speaking at a government meeting on April 28 focused on integrating AI into the economy, Akkenzhenov announced the creation of an AI alliance under the Ministry of Energy. The alliance brings together technology companies, industry participants, and developers to coordinate the deployment of digital solutions, with a priority on local innovations. One of the alliance’s key initiatives is an intelligent drilling monitoring system currently undergoing pilot implementation. According to Akkenzhenov, the system covers more than 4,000 wells and analyzes production data in real time, identifying anomalies and forecasting output levels. The pilot project is being implemented at facilities operated by KazMunayGas and other subsoil users. The deployment is expected to reduce well downtime by up to 20% and generate an estimated economic benefit of around $2.2 million annually. “It is important that the system has been developed in Kazakhstan and has export potential. Work is currently underway to promote it in international markets, including the United States,” Akkenzhenov said. The minister added that AI is also being used to monitor the circulation of petroleum products. The system processes real-time data from oil refineries, storage facilities, the national railway operator Kazakhstan Temir Zholy (KTZ), and government agencies. This enables more accurate forecasting of fuel reserves and helps identify risks of shortages or excess supply. “The expected outcome is an increase in planning accuracy to 85% and savings of up to $48.4 million annually,” the minister said. The system was developed through cooperation between KazMunayGas and the Kazakh-British Technical University as part of the AI-Sana program aimed at strengthening AI capabilities. According to the ministry, the AI alliance has developed a portfolio of 45 projects, 10 of which are currently under evaluation and preparation for implementation. The Times of Central Asia previously reported that President Kassym-Jomart Tokayev had instructed the creation of a specialized artificial intelligence university in Kazakhstan.

Automotive Industry

Kazakhstan’s Auto Industry Expands Output Amid Strong Demand

Kazakhstan’s automotive industry is increasing production on the back of strong domestic demand and ongoing localization policies. However, the sector is expected to face challenges in expanding into export markets in the coming years. In 2025, the country produced approximately 171,000 vehicles, while sales reached around 235,000 units, according to industry data. The broader engineering sector has expanded 8.5-fold over the past decade, reaching a historic high. Automotive manufacturing accounts for about 41% of this segment, making it one of the key non-resource drivers of the economy. One of the main factors behind growth is demand for fleet renewal. According to Zhaslan Azenov, advisor to the president of the Kazakhstan Automobile Union, the country’s passenger car fleet totals around 5.9 million vehicles, with more than 40% older than 20 years. The share of domestically produced vehicles in total sales reached 69% in 2025, reflecting the strengthening of local production, Azenov told The Times of Central Asia. Kazakhstan currently has 11 automotive manufacturers in operation, with one additional project under development. Major production sites are located in Kostanay, Almaty, Semey, Kokshetau, Saran, and Uralsk. Among the most popular brands on the market are Hyundai, Chevrolet, and Kia. The Chevrolet Cobalt remains the top-selling model, followed by the Hyundai Tucson, Kia Sportage, Hyundai Mufasa, and Hyundai Elantra. “Among the most popular models, the absolute leader is the Chevrolet Cobalt. The top five also includes Hyundai Tucson, Kia Sportage, Hyundai Mufasa, and Hyundai Elantra,” the industry representative said. At the same time, the presence of Chinese manufacturers is growing rapidly. Their market share has increased from 2% in 2020 to 39% by the end of 2025, driven by aggressive market entry strategies and plans for localized production. Deepening localization remains a key priority. Projects are underway to produce automotive components domestically, including interior elements, body parts, technical systems, and electronics. This is expected to reduce dependence on imports and lower production costs. “Kazakhstan is transitioning from simple assembly to deep localization. Today, we have a number of production facilities for interior components such as seats, flooring, headliners, and mats. In exterior components, we produce bumpers, plastic parts, and mudguards; in technical systems, exhaust systems, cooling and heating systems, wiring harnesses, fuel and brake lines; as well as consumables such as batteries, tires, paints, and sealants. In electronics, we are developing multimedia systems,” Azenov said. The electric vehicle segment remains at an early stage of development. As of September 2025, just over 22,000 electric vehicles were registered in the country, including around 21,000 passenger cars. Industry growth has also been accompanied by rising employment. The number of workers in automotive manufacturing increased from around 2,000 in 2018 to more than 11,000 in 2025. “It should be noted that the industry’s growth has been accompanied by a significant increase in jobs. If in 2018 just over 2,000 people were employed in automotive manufacturing, by 2025 this figure exceeded 11,000,” Azenov added. According to industry forecasts, vehicle sales could reach around 247,000 units in 2026, while...