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International Investment

British Company to Produce Flexible Concrete Material in Kyrgyzstan

The government of Kyrgyzstan and British company Concrete Canvas have signed an agreement to build a plant in Kyrgyzstan that will produce flexible concrete canvas, the government’s press service announced on February 6. Concrete Canvas manufactures waterproof, flexible, concrete-filled geosynthetic composite mats, primarily used to line irrigation canals to prevent erosion and reduce seepage losses. The planned production capacity of the new plant is at least 5 million square meters of concrete canvas per year. At the signing ceremony in Bishkek, Chairman of the Kyrgyz Cabinet of Ministers, Adylbek Kasymaliyev, highlighted the project as an example of an effective public-private partnership. He noted that five tons of this innovative material could replace 100 tons of cement in canal lining, significantly improving installation efficiency while delivering the same expected results. The agreement follows negotiations in April 2024, when representatives of Concrete Canvas visited Kyrgyzstan to discuss the project. The talks involved Kyrgyz Deputy Chairman of the Cabinet of Ministers and Minister of Water Resources, Agriculture, and Processing Industry, Bakyt Torobayev, and the then British Foreign Secretary, David Cameron, who was on an official visit. Torobayev underscored the importance of the material, stating, “Across Kyrgyzstan, the length of canals is 30,000 km, including 11,000 km of unsurfaced canals. By laying concrete material on these canals, we will avoid seepage of water and ensure its efficient use. Kyrgyzstan is an agricultural country with a lot of arable land, so we really need such materials.” He also confirmed that the British company’s plant will be built in the Osh region, in southern Kyrgyzstan.

Agriculture

Kyrgyzstan to Export Agricultural Products to China

On February 6, in Beijing, Kyrgyzstan’s Deputy Chairman of the Cabinet of Ministers and Minister of Water Resources, Agriculture, and Processing Industry, Bakyt Torobayev, and China’s Head of the General Administration of Customs, Sun Meijun, signed protocols allowing the export of Kyrgyz agricultural products to China. The approved goods include beans, wool, cashmere, poultry meat, and offal. Torobayev emphasized that these agreements represent an important step forward in strengthening trade and economic ties between Kyrgyzstan and China. According to the Kyrgyz Ministry of Water Resources, Agriculture, and Processing Industry, trade turnover between the two countries nearly tripled from 2019 to 2023, reaching $5.433 billion - a 31.6% increase from 2022. In January-November 2024, bilateral trade continued to grow, rising by 6.9%. The Kyrgyz minister expressed optimism about the early signing of additional export protocols for dried fruits, fresh fruits, vegetables, berries, raw cattle hides, and heat-treated meat. "We are confident that these goods will be in demand in the Chinese market," he stated. To facilitate trade, Torobayev proposed establishing a Chinese certification body’s representative office in Kyrgyzstan to simplify the certification process for Kyrgyz exports to China. During his visit to Beijing, Torobayev also met with Jilin Teyan Biotechnology Co., Ltd., a Chinese manufacturer of veterinary vaccines, to discuss the supply of vaccines to Kyrgyzstan. The company expressed interest in building a vaccine production plant in Kyrgyzstan to manufacture treatments for cattle and poultry diseases. These discussions took place as part of Kyrgyz President Sadyr Japarov’s state visit to China from February 4 to 7. During a meeting on February 5, Chinese President Xi Jinping reaffirmed China’s commitment to expanding economic, trade, and investment cooperation with Kyrgyzstan and expressed China’s willingness to import more high-quality agricultural products from the country.

Banking

Powering the Green and Economic Revolution: An Interview With Andi Aranitasi, Head of the EBRD in Uzbekistan

As the Head of the European Bank for Reconstruction and Development (EBRD) in Uzbekistan, Andi Aranitasi plays a key role in driving the country’s economic transformation. Under his leadership, the EBRD has expanded its investments in key sectors such as energy, infrastructure, and private enterprise, supporting Uzbekistan’s shift toward a more open and sustainable economy. With a focus on green energy, digitalization, and financial reforms, Aranitasi’s efforts contribute to the nation’s long-term development and integration into global markets. In 2024, the EBRD set an investment record in Uzbekistan by signing off on 34 projects worth €938 million (US $960 million). The country once again became the leading recipient of the Bank’s funding in Central Asia, with 55% of the Bank’s investments going towards green economy projects. The EBRD has supported Central Asia's first renewable hydrogen facility by providing a $65 million financing package to a joint venture of ACWA Power and Uzkimyosanoat, which will help to decarbonize the fertilizer production sector in Uzbekistan. The Bank also organized an A/B loan of US$ 226 million for developing, designing, constructing, and operating a 200MW solar photovoltaic power plant and a 501MWh battery energy storage system (BESS) in the Tashkent region. This is one of the most significant EBRD-supported BESS projects in the economies where the Bank operates. Its sovereign loan of $66.4 million to the National Electric Grid of Uzbekistan (NEGU) will support the construction of a 230 km 500 kV transmission line in the Navoi region. This project will help to eliminate bottlenecks in the grid, reduce electricity outages, and facilitate the integration of renewables. The EBRD’s sovereign loan of $238 million, meanwhile, will help rehabilitate a key road and build a bridge across the Amu Darya River in the Khorezm region, thus contributing to sustainable transport connections. The country’s financial sector attracted over €300 million from the EBRD through trade finance limits and loans to local financial institutions. It offered credit lines and risk-sharing agreements to such domestic lenders as Hamkorbank, Ipoteka Bank, TBC Bank Uzbekistan, and Uzbek Leasing International. Special attention was paid to the development and support of SMEs, including those needing energy efficiency improvements and owned and managed by youth and women. The EBRD also increased its equity investment in TBC Uzbekistan, the country’s first digital bank. Additionally, the EBRD and the government of Uzbekistan agreed to work jointly on the successful privatization of one of the country’s largest state-owned lenders, Asakabank. In 2024, the EBRD’s Advice for Small Business program in Uzbekistan launched 60 projects, increasing its outreach to domestic SMEs. Half of these were with women entrepreneurs, and over 40% were in rural areas. More than 80,000 entrepreneurs nationwide were reached through specialized training, networking, online outreach, and knowledge-sharing events. Throughout 2024, the EBRD was actively engaged in policy dialogue with the national authorities, which facilitated the approval of several key legal acts, such as laws on privatization, the electricity market, and subsoil use. TCA spoke with Andi Aranitasi. TCA: The EBRD has been involved...

State Budget

Kazakhstan Explores Budget Cuts and Tax Reforms with Input from Elon Musk

Kazakhstan is exploring ways to optimize its state budget, drawing inspiration from recent U.S. reforms. Deputy Prime Minister and Minister of National Economy Serik Zhumangarin revealed that Elon Musk, head of the newly established U.S. Department of Government Efficiency (DOGE), has offered assistance in implementing similar measures in Kazakhstan. According to Zhumangarin, Musk proposed helping the government identify potential cost-cutting areas, though he acknowledged that reducing social expenditures would be challenging. He welcomed Musk’s input, suggesting the formation of a working group to assess possible savings while ensuring that cuts do not negatively impact ordinary citizens. The discussion on budget efficiency comes as Kazakhstan prepares for tax reforms, including raising the value-added tax (VAT) from 12% to a proposed 16-20% and lowering the revenue threshold for VAT registration from 78 million KZT to 15 million KZT ($150,000 to $29,000). Officials estimate the changes could generate an additional 5-7 trillion KZT in revenue. However, the proposed reforms have met resistance. A petition argues that lowering the VAT threshold will disproportionately burden small and medium-sized enterprises (SMEs), forcing them to hire additional staff and leading to price increases. Some lawmakers have also warned that raising the VAT rate could drive inflation higher. Senate Speaker Maulen Ashimbayev has urged the government to reassess budget efficiency before implementing tax hikes, pointing to the U.S. model, where the Department of Government Efficiency is working to cut wasteful spending. While he does not advocate blindly following the U.S. approach, Ashimbayev believes Kazakhstan should consider similar measures as it debates tax increases and fiscal responsibility. As previously reported, Kazakhstan’s Ministry of National Economy had proposed reducing the number of taxes in the country by 21% a year ago.

Digital Service

Kazakhstan to Provide Tourists with QR-Code Security Cards

Foreign visitors entering Kazakhstan will now receive a special card with a QR code linking to the multilingual portal SafeTravel.kz, a platform designed to enhance tourist safety and provide access to essential services. The Ministry of Internal Affairs has launched this initiative as part of broader efforts to improve security measures for foreign visitors. Cards with QR codes are now being distributed at border checkpoints and airports, with the first set already in use at Kazakhstan’s international airport in Astana. Through SafeTravel.kz, tourists can access: The "102" mobile app for instant contact with police, including an SOS function A memo on migration laws and entry requirements A city map with links to navigation and travel apps A list of official taxi and online transport services Information on telecommunications operators with links to their websites Emergency response guidelines for various incidents Contact details for ambulance, fire, and rescue services Kazakhstan’s introduction of this QR-code security system aims to ensure a safer and more convenient experience for international travelers by providing quick access to emergency services and essential information.

Water Management

Uzbekistan to Supply 16 Billion Cubic Meters of Water to Kazakhstan by October 2025

Uzbekistan has agreed to supply 16 billion cubic meters of water to Kazakhstan by October 1, 2025, according to Kazakhstan’s Ministry of Water Resources and Irrigation. This agreement was reached during the 12th meeting of the Joint Working Group on Bilateral Water Cooperation, attended by Kazakhstan’s Minister of Water Resources and Irrigation, Nurzhan Nurzhigitov, and Uzbekistan’s Minister of Water Resources, Shavkat Khamrayev. In the previous water-sharing period (October 2023 - October 2024), Kazakhstan received 15 billion cubic meters of water. This year, the allocation will increase by 1 billion cubic meters. Uzbekistan has also pledged to ensure a stable water supply through the Dostyk Canal during the 2025 irrigation season. Additionally, both countries have agreed to carry out joint repairs on interstate canals to improve water access for farmers in Kazakhstan’s Turkestan region and Uzbekistan’s Jizzakh region. A key topic of discussion was the automation of water metering in the Syr Darya River. Kazakhstan and Uzbekistan have identified 10 monitoring points (five in each country) where automated water tracking systems will be installed. The technical specifications for a feasibility study have been approved. Kazakhstan’s Minister of Water Resources and Irrigation announced that a follow-up meeting with international organizations is planned for February to discuss further implementation steps. As The Times of Central Asia previously reported, Kazakhstan is set to receive 11 billion cubic meters of irrigation water by April 2025 under a regional agreement reached in Dushanbe. The deal was signed at a meeting of Central Asian water officials from Kazakhstan, Uzbekistan, Tajikistan, and Turkmenistan. The water will flow into the Shardara Reservoir in Kazakhstan’s Turkestan region via the Syr Darya River. Of this amount, 1.6 billion cubic meters will be allocated to the Aral Sea to help support its ecosystem.