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American Chamber of Commerce in Kyrgyzstan: Future Development and Investment Climate

As Central Asia continues to become a regional hub for trade and innovation, The Times of Central Asia spoke with Altynai Asanova, the Executive Director of the American Chamber of Commerce in the Kyrgyz Republic, to discuss the investment climate in Kyrgyzstan, economic trends, and future development. TCA: I see that your background is primarily in hotel management and sales; how did you transition from this role to your current position? “My background includes 18 years in the hotel business. Ten years at Hyatt, starting in food and beverage and ending in the hotel sales department; then, I worked at the Orion Hotel for the pre-opening and opening stage for about three years. After this, I was hired by Sheraton, one of the Marriott chain hotels, to work on the pre-opening and opening stage for two years. I was still involved with the business audience and wanted to continue working with the stakeholders and companies who know me.” TCA: How would you describe the hospitality industry in Kyrgyzstan? Is it mainly in Bishkek or other regions? “It is developing; before, it was only the Hyatt. Now, there are three or four chain hotels in Bishkek. It is good that there are more players in the market. It is developing day by day. The development is mainly in Bishkek, but we have good perspectives for Issyk Kul as long as the roads and infrastructure are completed. The chain hotels are also becoming interested in Issyk Kul. The good thing is that enough businessmen understand and accept the market challenges in Issyk Kul. They know it will not be financially stable at launch since the busy season is only about 50 days. But if the hotels provide full service and comfort, people will travel there for the full season.” TCA: Stepping away from hospitality, what did American investment in Kyrgyzstan look like ten years ago?” “Before, there was an American base in Kyrgyzstan. During that time, the hospitality business was amazing. The rates were high considering the charter flights and pilots who needed a place to stay. Now, these rooms are listed at the lowest rates. At that time, the Hyatt was the only five-star hotel in Bishkek, so all the American guests were staying at the Hyatt. The investment climate dropped after the U.S.-Kyrgyzstan agreement ended. There is opportunity, but it goes slowly.” TCA: Since then, what has changed in the business climate? “Business-wise, if we look from the angle of the association, we do not have any purely American business; we have franchise members: KFC, Hyatt, Sheraton, and some banks. It would be nice to have purely American [businesses] here.” TCA: Who are the current major investors in the Kyrgyz market? And is competition relevant to win contracts with local companies? “China, Russia, Kazakhstan, the Netherlands, and Turkey are the main investors. Before making any contracts or tenders, we need to understand the possibilities of our market, ‘Is our country ready to accept this level of business?’ The first question...

Prime Minister of Kyrgyzstan Holds Meeting with U.S. Business Mission

The Kyrgyz Chairman of the Cabinet of Ministers - Head of the Presidential Administration, Akylbek Japarov met with a business mission from the United States. The session was organized by the American-Kyrgyz Business Council, the Cabinet of Ministers of the Kyrgyz Republic press service reported. Representatives from several significant companies attended the meeting, including Abbott, Coca-Cola, GE Vernova Inc., OpenWay, Thomas Greg & Sons Limited, VISA, White & Case, and Jones Equity Fund. The parties discussed measures to develop and strengthen cooperation between the business communities of Kyrgyzstan and the United States, focusing on inter-bank collaboration, investment, digitization, and energy. Japarov spoke about the favorable investment climate in Kyrgyzstan and the government's efforts to create convenient conditions for doing business. During his working trip to the United States in April 2024, Japarov invited American business-people to visit Kyrgyzstan, stating that he hoped the visit would allow American business community to become acquainted with Kyrgyzstan's trade and investment potential, establish contacts, and cooperate with the local business community. Representatives of the American companies which are members of the U.S.-Kyrgyz Business Council confirmed their interest in expanding business ties between the two countries.

Success of Kazakhstan’s JobEscape Start-up

Kazakhstan’s largest venture fund, Tumar Venture LP, whose key investors are the World Bank and the Kazakh Ministry of Digital Development, Innovation and Aerospace Industry, has invested a further 250 thousand US dollars in the Kazakh start-up JobEscape. As announced by the Ministry of Digital Development on 17 June, the total investment in the project now stands at 450 thousand US dollars. JobEscape is a platform that facilitates the acquisition of new skills required to start a freelancing career, through the provision of solutions unique to freelancers and career changers, access to training and a wide range of AI tools. A global project, JobEscape has users from the USA, Canada, Australia, and European countries. Regarding funding, Aslan Sultanov, CEO of Tumar VF, stated: “We invested in JobEscape in the last round and have seen the project grow from literally $10,000 in monthly revenue to almost $1 million in annual revenue. Seeing this dynamic rise, we are confident that the start-up has the potential to grow into a billion-dollar company with roots in Kazakhstan. We are pleased to support the team in creating such a global initiative.” Similarly encouraged by the platform’s development, Miras Sovetov, CEO and co-founder of JobEscape, said: “At the moment, the company’s annual revenue is already close to $1 million. The goal is to grow to US$6 million in 2025. The product is now being widely used in Western markets due to the rapid development of products in the field of AI. Investments in this round will help the company increase its customer base and increase the number of AI tools on the platform. Investors from the UAE and Azerbaijan are already entering the project, which confirms its competitiveness in the global market. The next step will be raising money from American funds for further growth and potential exit (sale of the start-up).”    

UNDP Supports Export Promotion Center in Kyrgyzstan

A much welcomed export development and promotion center has been launched in Kyrgyzstan with support from the United Nations Development Programme (UNDP). According to a report by the UNDP in Kyrgyzstan on May 7, the key aim of the Kyrgyz Export Center is to offer advice and equip Kyrgyz companies with skills and knowledge to navigate and succeed in international trade. Local businesses  are promised access to a wide range of beneficial services  including the provision of data and analysis of potential international markets and step-by-step guidance in entering foreign markets. Help will also be available to enable companies to fully exploit their export potential through programs tailored to maximize growth and competitiveness. In addition, local companies will be encouraged and offered support to participate in trade missions and international exhibitions through which they can showcase their products to a global audience. Emphasizing the organization’s commitment to best international practices, Urmat Takirov, director of the Kyrgyz Export Center, stated, “We strive to apply the best practices and approaches adopted in international business to ensure the best results in the development of export-oriented companies in Kyrgyzstan.”

Kazakhstan Set to Reimburse Businesses for Equipment Costs

The Ministry of Industry and Construction has announced that from mid-May, the government of Kazakhstan will reimburse small and medium enterprises (SMEs) for costs incurred in the purchase of industrial and technological equipment. The initiative is designed to help entrepreneurs modernize their technological equipment, increase productivity, and expand the range of their products. Arstanbek Sagiev, head of the business stimulation directorate at Kazakhstan’s Center for Industry and Export, QazIndustry JSC, commented that because the purchase of technological equipment accounts for the lion’s share of expenditure of any enterprise, the business community had long requested state support. Outlining the initiative, he reported, “From May 12, 2024, enterprises that manufacture products on the list of priority goods can apply for part reimbursement of costs associated with purchasing equipment. QazIndustry will reimburse up to 40 percent of funds spent on the purchase of technological equipment, but not more than 60 million tenge.” At least 30 percent of equipment currently used by Kazakh manufacturers is past its best and hence, has a negative impact on both productivity and the competitiveness of domestic producers. In the absence of funds to develop production, coupled with financial burdens imposed by costly loans, many small and medium businesses are forced to postpone updating and replacing essential equipment. According to QazIndustry the state’s new reimbursement initiative will prove one of the most effective means of stimulating enterprises to modernize their equipment and therefore, their production.

Tajikistan and Italy Engage in Dialogue to Enhance Collaboration

On April 23, Tajikistan President Emomali Rahmon and the President of the Council of Ministers of Italy Giorgia Meloni met in Rome to discuss expanding bilateral relations regarding political, economic, trade, cultural, humanitarian, and security issues. According to Tajikistan’s president’s press service, both sides expressed interest in expanding cooperation in the fields of hydropower, light, food, metallurgical, mining, and chemical industries, as well as agriculture, pharmaceuticals, and tourism. Seeking to attract Italian capital for the development of his country’s industrial sector, President Rahmon emphasized that Tajikistan has all the necessary components for creating joint ventures in processing agricultural and industrial products and increasing their export to European countries. The leaders also discussed opening direct flights between Tajikistan and Italy, cooperation in education and healthcare, and the allocation of quotas for Tajik students wishing to study at Italian universities. As reported by the Italian prime minister’s office, the meeting resulted in the signing of several bilateral agreements aimed to strengthen Italy’s relationship with Central Asia through enhanced dialogue and collaboration in all sectors of common interest including security, drug control and tourism, as well as cultural, scientific and technological cooperation, and sustainable development.