Business Support - The Times Of Central Asia

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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).”

Business Support Export UNDP

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.”

SMSEs Business Support

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

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.

polyethylene Business Support Kazakhstan Russia China

Kazakh, Chinese and Russian Companies Unite on Polyethylene Production Plant

On April 19, a meeting was held between Magzum Mirzagaliyev, Chairman of the Board of KazMunayGas, Zhao Dong, President of the China Petrochemical Corporation (SINOPEC), and Mikhail Karisalov, Chairman of the Board of Russia’s SIBUR LLC. In the presence of the Prime Minister of Kazakhstan Olzhas Bektenov, the parties signed a tripartite protocol officially finalizing SINOPEC's entry into the joint construction of the first integrated gas chemical complex for polyethylene production in Kazakhstan’s Atyrau region. Costing around $7.7 billion, comprising investments of 40%, from KazMunayGas, 30% from SINOPEC 30%, and 30% from SIBUR, the plant will have the capacity to manufacture 1.25 million tons of polyethylene per year, equivalent to 1% of that produced globally. Speaking at the event, Bektenov emphasized the importance of the project due to its focus on the production of high value-added products. According to a report issued by his press office, a gas separation complex (GSC) will be built in Tengiz to supply ethane via pipeline to Karabatan in the Atyrau region to enable the new plant to produce 22 grades of polyethylene using Chevron, Phillips and Univation’s. licensed technology. The use of polyethylene is expansive ranging from medicines, prosthetics and syringes, to plastic wear-resistant pipes, construction materials, car parts, bulletproof vests and clothing for astronauts. It is also commonly employed in the food industry. Scheduled for completion by 2029, the plant’s target markets include Kazakhstan, CIS countries, China, Turkey, and Europe.

Kyrgyzstan Kant cement plant Business Support

Launch of a Clinker Line for Kyrgyzstan’s Largest Cement Plant

On March 20th, First Deputy Chairman of the Cabinet of Ministers of the Kyrgyz Republic, Adylbek Kasymaliev attended a ceremony to launch the construction of a new clinker line at the cement plant in Kant. Kasymaliev reported that in 2023, the plant received $8.5 million from the Kyrgyz-Russian Development Fund for an export-oriented aerated concrete line. This year, thanks to a loan of $50 million from the Eurasian Development Bank and $20 million of internal investments, the construction of a new clinker line has begun. Clinker is essential for cement production and its versatility allows it to be stored and transported globally without risk of degrading. With the completion of the new line, the production of high-quality clinker will total 800 thousand tons per year. Located 20km east of Bishkek, Kyrgyzstan’s largest cement plant currently produces over 1.1 million tons of cement per year and since it cooperates with 45 companies – from manufacturers of bags for cement to end consumers – the plant’s activities have a widespread impact on Kyrgyzstan’s economy.