Tajikistan Business Economy - The Times Of Central Asia

Viewing results 13 - 18 of 166

Fueling Growth: IFC Strategic Initiatives for Sustainable Development in Central Asia – An Interview With Hela Cheikhrouhou

With its headquarters in Washington, D.C. the International Finance Corporation (IFC) was established in 1956 as the private-sector arm of the World Bank. The institution offers advisory, and asset-management services to promote investment in developing countries. Recent ventures in Central Asia include solar power projects in Uzbekistan and Kyrgyzstan, and an entrepreneurship scheme for women and young people in Tajikistan. TCA spoke with Hela Cheikhrouhou, IFC Vice President for the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan about the IFC’s work in Central Asia. TCA: Can you please give us an overview of IFC's performance in Central Asia for fiscal year 2024 (July 1, 2023, to June 30, 2024)? IFC had a pivotal year in Central Asia, making strides in sustainable development and inclusive growth across the region. Our efforts concentrated on climate finance, infrastructure, agriculture, and supporting smaller businesses. By coupling investments with advisory support, we helped expand the role of the private sector, creating jobs, promoting financial inclusion, strengthening infrastructure, and supporting the region's green transition. In the fiscal year 2024, IFC committed over $1 billion to Central Asia. This includes about $400 million in long-term financing from our own account, $600 million in mobilization, and $35 million in short-term trade and supply-chain finance to facilitate trade flows. Alongside these financial commitments, we engaged in advisory projects focused on improving financial inclusion, developing innovative public-private partnerships (PPPs), and advancing climate initiatives and gender equality. Our results this year underscore our commitment to fostering sustainable, inclusive growth, and enhancing the resilience and sustainability of Central Asian economies. TCA: Can you highlight some of the IFC’s key achievements in Central Asia this year? In addition to the strong financial commitments mentioned earlier, IFC expanded its presence in various sectors, including finance, capital markets, renewable energy, agriculture, and infrastructure. Through our advisory services, we helped structure impactful PPPs at the sectoral level. A major focus this year has been strengthening local financial markets. IFC invested $228 million across ten financial institutions in Kazakhstan, the Kyrgyz Republic, Tajikistan, and Uzbekistan. Up to half this amount was dedicated to supporting women entrepreneurs and rural enterprises. We also helped these financial institutions expand portfolios related to their micro, small, and medium enterprise (MSME) businesses, advance climate finance, foster digital transformation, and issue the region’s first sustainability, social, and green bonds. Supporting MSMEs has enabled entrepreneurs to grow their businesses and generate employment. In the past fiscal year alone, IFC-supported projects created around 35,000 direct jobs, including opportunities for over 13,000 women across the region. These efforts have been further bolstered by targeted investments and projects in individual countries across the region. In Uzbekistan, IFC, together with the World Bank, financed a new solar plant equipped with the country’s first battery energy storage system. Once completed, the plant is expected to provide electricity access to around 75,000 households in the Bukhara region. As part of its broader support for the Uzbek government’s efforts to reform its chemical sector, IFC assisted the State Asset Management Agency in privatizing Ferganaazot,...

Central Asia Uzbekistan Tajikistan Local Politics Kazakhstan Local Politics Tajikistan Tajikistan Business Economy Local Politics Uzbekistan Business & Economy Kazakhstan Business & Economy Kazakhstan Business & Economy Uzbekistan Local Politics

Kazakhstan Leads Central Asia in AI Readiness

According to IMF data analyzed by Ranking.kz, Kazakhstan ranks as the leading Central Asian country in global artificial intelligence (AI) readiness, while Uzbekistan and Tajikistan are at the bottom of the regional standings. The AI readiness index, which covers 174 countries, evaluates factors such as digital infrastructure, human capital, technological innovation, and legal regulation. It draws on data from the World Bank, the International Labor Organization, and other sources. Kazakhstan ranks within the top 50 countries for AI readiness, holding 48th place with an index score of 0.55, just behind Russia, which ranks 47th. McKinsey & Company has noted Kazakhstan’s use of AI to enhance public services, particularly through geographic information systems and spatial data. For instance, Kazakhstan has employed a statistical model that integrates geographic, demographic, and economic data to assess infrastructure needs across 6,293 villages, identifying 3,500 villages with the highest potential to cover 90% of the rural population. This approach enables the government to deliver essential services and infrastructure more effectively to rural areas. Following Kazakhstan in 48th place, with a noticeable gap, is Kyrgyzstan (99th with 0.43). Tajikistan ranks 123rd with an index of 0.37, and neighboring Uzbekistan is in 131st place with an index of 0.35, placing it last among Central Asian and EAEU countries. Turkmenistan was not included in the IMF index.

Central Asia Uzbekistan Environment Environment Kazakhstan Environment Home Uzbekistan Tajikistan International Affairs Kyrgyzstan Environment Turkmenistan Kazakhstan Local Politics Tajikistan Local Politics Turkmenistan International Affairs International Affairs Tajikistan Tajikistan Business Economy Turkmenistan Local Politics Local Politics Kyrgyzstan Kyrgyzstan International Affairs Turkmenistan Business & Economy Kazakhstan Uzbekistan Business & Economy Kazakhstan International Affairs Kyrgyzstan Local Politics Kazakhstan Business & Economy Kyrgyzstan Business & Economy Features Tajikistan Environment Turkmenistan Environment Uzbekistan International Affairs

Kazakhstan Secures Agreement for 11 Billion Cubic Meters of Water from Neighboring Countries by April 2025

Kazakhstan will receive approximately 11 billion cubic meters of irrigation water from the Syr Darya River by April 2025, following an agreement made by Nurzhan Nurzhigitov, Kazakhstan’s Minister of Water Resources and Irrigation, with representatives from neighboring Central Asian countries. The accord was reached at the 87th meeting of the Interstate Coordination Water Management Commission held last week in Ashgabat, Turkmenistan, and attended by water ministry leaders from Tajikistan, Turkmenistan, and Uzbekistan, with Kyrgyzstan as an observer. This substantial water supply is expected to fill the Shardara reservoir in southern Kazakhstan by April 1, 2025, providing enough water for the region's 2025 irrigation season. Given Kazakhstan’s reliance on irrigation for agriculture, particularly in the arid south, the flow from upstream countries like Tajikistan, Kyrgyzstan, and Uzbekistan is vital. Nurzhigitov noted, "This year, thanks to negotiations and joint actions, we ensured the effective water distribution in the Syrdarya River basin. Agreements on water and energy cooperation with Kyrgyzstan were implemented, and measures were taken to coordinate the operating mode of the Bakhri-Tojik reservoir [in Tajikistan] during this year’s irrigation season.”

Central Asia Environment Tajikistan International Affairs Uzbekistan Turkmenistan Turkmenistan International Affairs International Affairs Tajikistan Tajikistan Business Economy Turkmenistan Business & Economy Kyrgyzstan International Affairs Kyrgyzstan Local Politics Business & Economy Kazakhstan Uzbekistan Business & Economy Kazakhstan International Affairs Kyrgyzstan Business & Economy Kazakhstan Business & Economy Uzbekistan International Affairs

CAREC Ministers Approve Climate Action Plan and Launch Regional Climate Fund

At the 23rd CAREC Ministerial Conference held in Astana on November 8, member countries of the Central Asia Regional Economic Cooperation (CAREC) Program—Afghanistan, Azerbaijan, China, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan—endorsed a new Climate Change Action Plan (CCAP) and launched the CAREC Climate and Sustainability Project Preparatory Fund (CSPPF). These initiatives aim to strengthen regional collaboration on climate resilience, low-carbon growth, and sustainable development. The CAREC Program is a partnership of 11 countries and development partners that promotes sustainable development through regional cooperation, with the Asian Development Bank (ADB) hosting the CAREC Secretariat. In his address at the conference, ADB President Masatsugu Asakawa stated, “The approval of the CAREC Climate Change Action Plan and the establishment of the Climate and Sustainability Project Preparatory Fund are significant milestones in our collective efforts to address climate change. By working together, we can build resilient infrastructure, develop early warning systems, and create a greener future powered by renewable energy.” The CCAP, covering the period from 2025 to 2027, prioritizes initiatives aligned with the CAREC Climate Change Vision and focuses on four main areas to address climate challenges in the region. It aims to enhance climate risk preparedness, strengthen the water-energy-food nexus, promote low-carbon growth by reducing emissions and expanding renewable energy, and create a CAREC climate platform. The CSPPF will support CAREC countries in developing viable regional climate projects that align with their commitments under the Paris Agreement. On November 8, ADB signed fund contribution agreements with China’s Ministry of Finance and South Korea’s Ministry of Economy and Finance, generating an initial $5 million in funding for the CSPPF. Speaking at the Ministerial Conference, Kazakhstan’s Prime Minister Olzhas Bektenov highlighted the CAREC Program’s significance for Central Asia, noting that over the past 20 years, it has mobilized about $51 billion for the region, with more than $9 billion invested in Kazakhstan. During his visit to Kazakhstan, ADB’s Asakawa met with President Kassym-Jomart Tokayev to discuss ongoing cooperation and future initiatives. From 1994 to 2024, ADB financed projects in Kazakhstan valued at approximately $7 billion. Notably, ADB participated in the construction of the Western Europe–Western China highway corridor and the reconstruction of the Aktobe–Kandyagash road.

Central Asia Uzbekistan Kazakhstan Local Politics Tajikistan Local Politics International Affairs Tajikistan Tajikistan Business Economy Local Politics Kyrgyzstan Business & Economy Kazakhstan Uzbekistan Business & Economy Kyrgyzstan Local Politics Kazakhstan Business & Economy Kyrgyzstan Business & Economy Uzbekistan Local Politics

Solidarity Center: Central Asian Migrant Workers Face Low Pay and Unsafe Workplaces

Central Asian migrant workers face new challenges as they look for well-paying jobs, with economic shifts and political instability adding to the uncertainty. More women and young people also choose to migrate, often facing unique risks. Panelists at a recent Solidarity Center webinar highlighted that protecting these workers’ rights is more effective when countries in the region work together on safe migration plans. A Solidarity Center study involving over 1,000 migrant workers from Kazakhstan, Kyrgyzstan, and Uzbekistan found that Kyrgyzstan and Uzbekistan are the primary countries of origin, while Kazakhstan is becoming a growing destination. Most participants (58%) left due to low wages in their home countries, and 31% cited a lack of jobs as their main reason for migrating. Russia, once a top destination for Central Asian workers, has seen a drop in migrant numbers since its economy took a hit following Russia's invasion of Ukraine. A migrant worker from Uzbekistan shared that overtime hours weren’t paid, and medical expenses had to come out of his pocket if he got sick. According to Lola Abdukadyrova, Solidarity Center's regional director in Kyrgyzstan, this story reflects the harsh conditions many migrant workers face—no overtime pay, no sick leave, and frequent discrimination or harassment. Abdukadyrova noted that for nearly 30% of Kyrgyz migrant households, money for food is often a struggle. In Uzbekistan, this rate rises to 45%, as shared by Nodira Karimova, director of the Republican Social Information Center Istiqbolli Avlod. Abdukadyrova added that many migrants earn only enough for basic food, and they face delayed payments, heavier workloads without extra pay, and unsafe working conditions. “Kazakhstan has endorsed the Global Compact for Safe, Orderly and Regular Migration (GCM) and participates in various regional migration dialogues,” said Aleksandr Mukha, director of the Mangistau Regional Branch of the Kazakhstan International Bureau for Human Rights and Rule of Law. In another significant win for migrant worker rights organizations, Kyrgyzstan issued the GCM in August to improve conditions for Kyrgyz citizens who travel abroad to earn their livelihoods. The Times of Central Asia has previously written about how that Russia's ongoing war in Ukraine has increased pressure on Central Asian migrants.

Central Asia Environment Tajikistan International Affairs Tajikistan Local Politics Tajikistan Business Economy Tajikistan International Affairs Local Politics Business & Economy

World Bank Report Outlines Path to Drive Tajikistan’s Green Transition and Economic Growth

On November 7, the World Bank Group published the Tajikistan Country Climate and Development Report (CCDR), highlighting the transformative potential of climate action for Tajikistan's economy. The report suggests that addressing climate risks can drive economic renewal, create jobs, and enhance resilience against the rising frequency of extreme weather events caused by climate change. Ozan Sevimli, World Bank Group Country Manager for Tajikistan, emphasized the urgency of a strategic shift: “Tajikistan urgently needs an economic reset to tackle its numerous development challenges and the growing impacts of climate change that threaten future progress. The CCDR provides a roadmap for accelerating the transition to a green economy, supporting long-term growth.” A key finding of the report is the importance of mobilizing private-sector financing to supplement Tajikistan's limited public resources. This financing will be crucial in securing the nation’s green transition and ensuring water, food, and energy security. Despite ranking 130th globally in greenhouse gas emissions, Tajikistan is highly vulnerable to climate change impacts, notes Bahodur Sheralizoda, Chair of the Environmental Protection Committee under the Tajik government: “Although our contribution to global emissions is minimal, we are one of the most climate-vulnerable countries in the world. The CCDR advises the government to improve production efficiency, foster innovative technologies, and create green jobs to reduce our susceptibility to climate-related challenges.” The report warns that Tajikistan already faces high risks of floods, earthquakes, and landslides, with potential infrastructure and agricultural losses that could lower GDP by 5-6% by 2050. The strategic Vakhsh River Basin, which produces 90% of the country’s electricity, underscores the dual challenges of climate and development. Annual costs of land degradation are estimated at $325 million, with further increases anticipated. Additionally, air pollution remains a major health risk, accounting for 84 deaths per 100,000 people—Central Asia’s second-highest rate. A green transition could deliver substantial benefits. By 2050, reduced healthcare costs from lower air pollution, fewer road accidents, and improved road conditions could save over $3.5 billion. Investments in renewable energy, including hydro, solar, and geothermal, as well as in energy efficiency, promise new employment opportunities across sectors. The report advises the Tajik government to fast-track low-carbon development to strengthen economic growth, energy security, export potential, and job creation, all while enhancing air quality. Achieving these goals will require significant investments: Tajikistan needs around $17 billion, in addition to the $79 billion required for the government’s reform agenda from 2025 to 2050. Private sector investments, particularly in energy, industry, and agriculture, will be essential. Recognizing that the financial needs for this transformation exceed domestic resources, the report underscores the importance of external support. Tajikistan will need substantial technical and financial assistance from international bodies, climate funds, and development partners to fulfill its climate and development goals.