• KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
  • KGS/USD = 0.01149 0%
  • KZT/USD = 0.00191 0%
  • TJS/USD = 0.09217 0.44%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28615 0.14%
04 January 2025

Viewing results 13 - 18 of 275

High Food Costs and Growing Waistlines: Kazakhstan’s Struggle with Rising Obesity

More than half of Kazakhstan’s population is overweight or obese, even as food prices in the country continue to climb. Deputy Prime Minister Serik Jumangarin recently highlighted that nearly 50% of consumer spending is allocated to food and beverages. In response, members of the Senate and the upper house of parliament are advocating for stricter regulations on food quality. Aniko Nemeth, an expert on food safety and nutrition at the Food and Agriculture Organization’s (FAO) regional office for Europe and Central Asia, pointed out the country’s obesity crisis during a Senate hearing on food security. Drawing from data from the Kazakh Academy of Nutrition, she noted that 55.5% of women and 49.2% of men in Kazakhstan are overweight or obese. At the same time, 5.6% of the population suffers from malnutrition. The paradox highlights a larger issue: the rising cost of a healthy diet. According to Nemeth, the price has increased by at least 8% over the last eight years. Urban residents are more affected than rural residents who can supplement their diets with homegrown produce. Deputy Prime Minister Jumangarin acknowledged that food prices are a major burden for the population. He outlined measures to address the issue, including constructing 92 modern fruit and vegetable storage facilities by the end of next year. With a capacity of 700,000 tons, these facilities aim to stabilize seasonal prices. Additionally, subsidies for seeds will be increased to support farmers, focusing on reducing dependency on foreign hybrids. Jumangarin also addressed the dependence on imported meat, which drives up costs. He announced plans for a commercial livestock farming project in the Turkestan region, modeled on Australia’s practices. Expected to launch in 2025, the initiative aims to lower domestic meat prices and increase sausage production. Furthermore, Kazakhstan is set to become self-sufficient in poultry production and may even begin exporting chicken meat within a few years. Kazakhstan’s cheese production currently meets only 57% of domestic demand. New production projects are underway to bridge the gap, including partnerships with global leaders like French-owned Lactalis, the world's largest dairy products group. Jumangarin revealed plans for a facility in the Akmola region and another in Kostanay to produce 2,000 tons of cheese annually. These efforts coincide with an anticipated surplus in milk production from newly established dairy farms. Despite these efforts to make food more affordable, senators believe legislative action is needed to address the obesity epidemic. Arman Utegulov, representing the agricultural ministry of Kazakhstan, proposed a law to regulate genetically modified organisms (GMOs) and foods treated with pesticides and antibiotics. He also called for stricter oversight of laboratories and trade centers to ensure food quality. “Excessive hormones in animal feed lead to chronic diseases,” Karimovich warned. He suggested amendments to existing legislation and even the potential return of veterinary laboratories to state control to tackle these issues. Kazakhstan faces a dual challenge: ensuring food affordability and combating rising obesity rates. While government initiatives aim to support domestic agriculture and stabilize food prices, balancing quality and cost remains critical....

Kazakhstan Tops Central Asia in Global E-Governance Rankings

Kazakhstan has risen to 24th place out of 193 countries in the 2024 UN E-Government Development Index, up from 28th in 2022. This achievement reaffirms Kazakhstan’s position as the regional leader in e-governance, surpassing its Central Asian neighbors. Globally, Denmark, Estonia, and Singapore secured the top three spots. Legislative Advances in Digital Transformation To further bolster its digital transformation, President Kassym-Jomart Tokayev signed a landmark law on July 5, focusing on digitizing statistics and improving data management systems. This legislation is set to reduce statistical reporting requirements by 40-50% through amendments to various laws concerning state control, statistics, and data management. Regional Comparisons Other Central Asian countries also demonstrated progress in e-governance, albeit at different rates: • Uzbekistan rose to 63rd place from 69th, exceeding the 2025 targets outlined in its “Digital Uzbekistan 2030” strategy, according to Minister of Digital Technologies Sherzod Shermatov. • Kyrgyzstan improved to 78th place from 81st. • Tajikistan made significant strides, climbing from 141st to 123rd place. • Turkmenistan, however, experienced a decline, dropping to 145th place from 137th in 2022.

EDB Forecasts Strengthening of the Tenge in 2025

The Eurasian Development Bank (EDB) has projected a strengthening of Kazakhstan’s national currency, the tenge, in 2025. This forecast was presented by Aigul Berdigulova, a senior analyst at the EDB’s Country Analysis Center, during the bank’s macroeconomic outlook for the Eurasian Economic Union (EAEU) member states. Exchange Rate Outlook The tenge’s exchange rate has been under significant pressure, depreciating from 495 KZT per U.S. dollar in mid-November to 523.58 KZT by December 5, according to Kazakhstan’s National Bank. Exchange offices have reported rates as high as 525 KZT per dollar. The National Bank attributes this decline to external factors, such as fluctuating global commodity prices - critical to Kazakhstan’s export economy - and the weakening of the Russian ruble, a key trade partner’s currency. Internal factors, including heightened demand for foreign currency, have further contributed to the tenge’s volatility. To stabilize the market, the National Bank intervened with $1.2 million from the National Fund in November. Despite these challenges, EDB analysts anticipate a rebound in 2024 and beyond. “We believe the current volatility in Kazakhstan’s currency market is temporary,” said Berdigulova. She emphasized that the National Bank and government are employing timely measures, including mandatory sales of 50% of foreign currency earnings by quasi-governmental entities and increased transfers from the National Fund. The EDB forecasts the average annual exchange rate in Kazakhstan to reach 486 KZT per dollar in 2025, a slight depreciation from the projected 466 KZT per dollar in 2024. By 2026-2027, the tenge is expected to stabilize at around 497 KZT per dollar. Inflation and Monetary Policy High inflation remains a concern. The EDB predicts inflation in Kazakhstan will decline to 7.3% by the end of 2025, hindered by rising tariffs for housing and utilities. To manage inflation, the National Bank is likely to maintain a high prime rate, above 15%, through the first quarter of 2025. However, as inflationary pressures ease, the rate may decrease to 11.25% by late 2025. External Influences and Oil Revenues Marina Sobolevskaya, head of the EDB’s Country Analysis Center, acknowledged that the Russian ruble's depreciation would continue to impact the tenge, with the ruble expected to weaken from 92.5 per dollar in 2024 to 104 per dollar in 2025 and 107 per dollar by 2027. On the other hand, Kazakhstan’s currency could gain support from increased oil production, particularly from expanded operations at the Tengiz oil field. Higher exports and foreign currency inflows could mitigate currency fluctuations in the domestic market. Short-Term Recovery The possibility of a short-term recovery for the tenge was also suggested by Murat Temirkhanov, an advisor at Halyk Finance. He attributed recent volatility to a surge in demand for dollars, driven by sanctions-induced ruble depreciation. Temirkhanov argued that the tenge-dollar exchange rate’s sensitivity to the ruble is overstated, given the relatively small share of ruble settlements in Kazakhstan’s foreign trade. Halyk Finance estimates the tenge’s current exchange rate of 525 KZT per dollar is above its fundamental value, which should be closer to 505 KZT per dollar....

France to Help Kazakhstan Preserve Lake Balkhash

Kazakhstan’s Ministry of Water Resources and Irrigation, the French Development Agency (AFD), and the French Geological Survey (BRGM, Bureau de Recherches Géologiques et Minières) have signed a cooperation agreement to preserve Lake Balkhash. The agreement was formalized on December 4 at the One Water Summit in Saudi Arabia, attended by Kazakhstan President Kassym-Jomart Tokayev and French President Emmanuel Macron. Located 175 miles northwest of Almaty, Kazakhstan’s largest city, Lake Balkhash is the world’s fifteenth-largest lake. Under the agreement, the French side will allocate a grant of 1.35 million €uros to Kazakhstan’s Ministry of Water Resources and Irrigation to develop sustainable water management for the lake. The project includes a comprehensive study of the Lake Balkhash basin to create a long-term preservation plan through 2040. Minister of Water Resources and Irrigation, Nurzhan Nurzhigitov explained, "The trilateral agreement with AFD and BRGM is aimed at studying and sustainably managing water in the Lake Balkhash basin. The document provides for measuring and analyzing the state of water, modeling climate and anthropogenic influences, and forecasting the water balance until 2040. One of the goals of the project is to optimize the operating mode of the Kapchagay Reservoir to stabilize the level of Lake Balkhash. Based on the results of the study, measures will be taken to clean the rivers [feeding Balkhash], prevent soil degradation and water pollution, develop fisheries and ecotourism, and create a regulatory framework for the protection of the lake." At the summit, Kazakhstan’s Special Representative for International Environmental Cooperation, Zulfiya Suleimenova, announced that Kazakhmys Corporation, one of the country’s leading private companies, will contribute $5 million to preserve the ecosystem of Lake Balkhash and adjacent wetlands. In November, The Times of Central Asia reported that 13.5 billion cubic meters of water had been sent to Lake Balkhash via the Ili River from the Kapchagay Reservoir in 2024, raising the lake’s average water level to 341.6 meters above sea level. The Ili River, which originates in China, provides about 70% of Lake Balkhash’s water. Earlier in May, reports indicated that Balkhash’s water level had risen by 23 centimeters since the start of the year, largely due to increased rainfall and snow-melt floods during spring. Additionally, Kazakhstan and China have begun negotiations on the joint management of trans-boundary rivers, including the Ili. As previously reported by The Times of Central Asia, a key focus for Kazakhstan in these talks is to maintain optimal water levels in Lake Balkhash.

Kazakhstan Launches New Online Marketplace

A new domestic online marketplace, Teez, has commenced operations in Karaganda, the central city of Kazakhstan’s Karaganda region. The platform, offering next-day delivery, has opened pick-up points in 24 cities nationwide. On November 29, Kazakhstan’s Minister of Trade and Integration, Arman Shakkaliyev, visited the marketplace's main warehouse. Teez co-founder Linar Khusnullin informed the minister that the platform currently operates 40 pick-up points and plans to expand this network to 127. The marketplace offers 50,000 product types, and its customer application has already been downloaded by 170,000 users. The company’s warehouse spans 25,000 square meters, but by 2030, it aims to expand to a 120,000-square-meter facility. Teez aspires to become Kazakhstan’s leading e-commerce platform. Shakkaliyev highlighted the rapid growth of e-commerce in Kazakhstan, noting a 20% increase in electronic trade volume from January to October 2024 compared to the same period in 2023. He emphasized that Karaganda, with its central location and developed infrastructure, has the potential to become a vital trade and logistics hub not just for Kazakhstan but for the entire Central Asian region. The Times of Central Asia reported that in 2023, the volume of e-commerce in Kazakhstan exceeded 2.2 trillion KZT ($4.8 billion), accounting for 13% of all retail trade, a 0.5% increase from the previous year. The country aims to raise its share of e-commerce to 20% by 2030.

Kazakhstan’s National Bank Raises Prime Rate to 15.25% Annually

The Monetary Policy Committee of Kazakhstan’s National Bank has raised the prime rate to 15.25% per annum, with an allowable deviation of 1 percentage point. This adjustment comes in response to the sharp weakening of the national currency, the tenge. The decision is grounded in updated forecasts and assessments of inflationary risks. The National Bank cited easing monetary conditions—driven by the tenge's depreciation, declining real interest rates, and heightened inflation expectations—as key factors behind the rate increase. Financial market volatility has further underscored the need for this measure. The National Bank emphasized its commitment to closely monitoring market dynamics and taking additional measures if needed to stabilize inflation. The central goal remains returning inflation, which has risen to 8.5%, to a target of 5%. The next decision on the prime rate is scheduled for January 17, 2025. Role of the Prime Rate The prime rate is a critical economic tool, directly influencing credit costs for banks and shaping inflation trends. Determined through an analysis of economic conditions, it regulates the money market. While a lower prime rate may temporarily weaken the tenge, it can boost production and economic growth in the medium term. Recent Adjustments The latest hike follows a series of previous adjustments. In February 2024, the prime rate was reduced to 14.75%, followed by another decrease to 14.25% in July. The rate was maintained at this level in October before this recent increase. Looking ahead, the National Bank has also published a schedule of rate decisions for 2025, underscoring its transparent approach to monetary policy.