Digitization - The Times Of Central Asia

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Kazakhstan’s Largest Hackathon to Take Place Across the Country

Decentrathon 2.0, Kazakhstan's largest multi-location hackathon, will be held on October 18-19 across major cities, including Astana, Almaty, Shymkent, Karaganda, and others, gathering more than 2,500 developers from the country’s 17 regions to compete for a $50,000 prize. According to the Ministry of Digital Development, Innovations, and Aerospace Industry, participants will tackle challenges related to AI, Blockchain, GameDev, and Telegram mini apps. Additionally, a virtual job fair will offer developers the chance to connect with top companies and explore local and international career opportunities. Organized by the Blockchain and AI Technology Center (BAITC) and Astana Hub, with support from the Ministry of Digital Development, Innovations, and Aerospace Industry, this year’s hackathon will be an expanded including leading universities and tech parks, making it a truly national event. The inaugural event in 2023 gathered more than 1,500 participants from nine regions. Zhaslan Madiyev, Minister of Digital Development, Innovations, and Aerospace Industry, stated that: "Decentrathon is the first large-scale IT event spanning every region of Kazakhstan and one of the key initiatives of the Generative Nation movement this year. Our goal is to drive the country's AI transformation. Initiatives like this must have a national scope, providing young talents across Kazakhstan with the opportunity to contribute to technological and AI development." Magzhan Madiyev, CEO of Astana Hub, added, "AI engineers play a pivotal role in Kazakhstan's AI transformation. The Generative Nation movement’s initiatives focus on developing human capital in AI, enabling them to work on projects that will transform our country and have a global impact."

Digitalization Digitization e-Commerce UNDP business International trade domestic entrepreneurs

UNDP Helps Entrepreneurs in Kyrgyzstan Master E-Commerce

More than 50 entrepreneurs from Kyrgyzstan are learning about e-commerce through the "Janyration Sanarip" program, an initiative aimed at supporting micro, small, and medium-sized enterprises in the country, jointly implemented by the government of Kyrgyzstan and the United Nations Development Programme (UNDP), UNDP Kyrgyzstan reports. According to Nazarbek Malayev, Kyrgyzstan’s Deputy Minister of Economy and Commerce, "E-commerce opens up unique opportunities for domestic entrepreneurs to enter international markets, expand their customer base, and improve the competitiveness of their products. The Government of the Kyrgyz Republic is trying to create a favorable ecosystem where digital technologies contribute to business development and improve citizens' quality of life." Since 2019, e-commerce in Kyrgyzstan has been experiencing rapid growth, driven by the development of internet infrastructure and an increase in mobile payment users. However, the sector faces several challenges, such as a lack of consumer trust in online shopping and limited internet access in rural areas, where 60% of the population lives. In response to these challenges, the government launched the E-Commerce Development Program for 2023-2026, aimed at enhancing the competitiveness of local products in international markets and attracting investments. Within this initiative, UNDP provides comprehensive support to entrepreneurs, helping them acquire e-commerce skills and work effectively on global marketplaces. UNDP Resident Representative in Kyrgyzstan, Alexandra Solovieva, commented: "Digitalization is a key factor in bridging the digital divide and accelerating Kyrgyzstan's economic development. E-commerce improves access to services and creates new opportunities for local entrepreneurs. We are confident that the joint efforts of the Government and UNDP will contribute to sustainable and inclusive economic growth, particularly in rural areas where internet access remains limited.” Five hundred forty-two applications were submitted for the program, and entrepreneurs were selected based on several criteria, including having an existing business in Kyrgyzstan and a personal investment of at least 80,000 KGS (almost $1,000). These entrepreneurs, representing key sectors such as garment manufacturing, tourism, honey production, light industry, services, and trade, were selected from all regions of the country. Kyrgyzstan is the world's 96th largest market for e-commerce, with a predicted revenue of more than $359 million in 2024, placing it ahead of Uzbekistan. The country’s e-commerce revenue is expected to grow at a compound annual rate of 13.5% from 2024 to 2028, resulting in a projected market volume of $595.7 million by 2028.

UNDP Digitization Economy

Electronic Information Exchange Systems to Be Introduced in Turkmenistan’s Agencies

The Türkmenaragatnaşyk Agency and UNDP (United Nations Development Program) have signed an agreement to assist the introduction of an inter-agency electronic information exchange system in Turkmenistan in accordance with the decree of President Serdar Berdimuhamedov, as reported by Arzuw.news. "The document provides for the connection of Turkmenistan's agencies to the systems of electronic information exchange and electronic document management, as well as training of specialized staff in this area, taking into account international experience," the report states. The President of Turkmenistan stressed that the country is currently actively working on digitization in various spheres of life in the state. At the meeting of the Government of Turkmenistan, Director General of the Agency of Transport and Communications, Mammetkhan Chakyev presented for consideration projects on introduction of electronic information exchange systems in the country's agencies.

Digitization Kazakhstan

Kazakhstan, Azerbaijan to Lay Fiber-Optic Communication Cables Along Caspian Sea Bed

On President of Kazakhstan Kassym-Jomart Tokayev's state visit to Azerbaijan, Tokayev noted that the interaction between Kazakhstan and Azerbaijan is based on trust and friendship and serves as an example of interstate relations. He emphasized that now, in addition to cooperation on natural resources, the struggle for access to transportation and logistics opportunities is intensifying around the world. The two Caspian countries are closely cooperating in this regard. Tokayev, alongside Azerbaijani President Heydar Aliyev, took part in the opening ceremony of a railroad route stretching from the port of Xi'an in China across Kazakhstan to Azerbaijan. "This is indeed a very important event. We talked about making joint efforts in the field of digitization, creation of artificial intelligence, and the construction of fiber-optic communications along the Caspian Sea bed. These are unique projects," Tokayev said. Last June, the governments of Kazakhstan and Azerbaijan signed an agreement on laying fiber-optic communication cables along the Caspian Sea bed. The lines will be laid by Kazakhstan's Kazakhtelecom and Azerbaijan's AzerTelecom. The project will be one of the main components of the transnational Digital Silk Road project, and will seek to improve the quality of internet connections in the countries of Central Asia and the South Caucasus. The total length of the cable connecting Kazakhstan and Azerbaijan will be 380 kilometers, and its capacity will reach up to 400 terabits per second. On August 22nd, 2023, the two countries signed a joint venture agreement in Amsterdam that will be responsible for the implementation of this project, including the construction of a fiber-optic communication line.

Digitization

Artificial Intelligence in Central Asia: Applications and Regulation

The debate on the need for worldwide regulation of artificial intelligence (AI) is gaining momentum, given that over the past year AI has become a key tool for millions of people. With a growing number of organizations applying AI in various fields, including medicine, politics and judicial decisions, the urgent question is how to integrate AI into legislation. In Central Asia, in 2020 the National Bank of Kyrgyzstan authorized remote identification of individuals at banks using AI, machine learning and other predictive algorithms to process customer biometric data. Bishkek also introduced a facial recognition system based on artificial intelligence which allows data about wanted persons to be entered, and cameras to automatically identify them and transmit information to law enforcement. Artificial intelligence has also found its application in the political process. In 2020, the Mekenim Kyrgyzstan Party used a digital bot farm during the elections which generated approximately 150 profiles a day, automatically wrote comments and then self-liquidated. In Tajikistan, where the use of AI is not widespread, MegaFon stands out for its introduction of the Dono chatbot in 2019. This artificial interlocutor interacts with around 14,000 subscribers per day, freeing humans from routine tasks and allowing them to deal with more complex issues. In Uzbekistan, meanwhile, the government is taking active measures to stimulate the development of AI technologies. A presidential decree has established comprehensive steps towards the digitization of the economy and the social sphere. Digitization of government data in various sectors, such as justice, communications, finance, education and healthcare are becoming an integral part of the development strategy. The application of AI technologies, starting with image recognition and navigation systems, has already become a tangible part of task-solving in large enterprises, and the country is actively working to create an enabling environment to further expand the use of AI. In Kazakhstan, AI is being actively introduced in the judicial system, and over the past two years AI systems have been used to analyze court cases and predict their outcomes. The authorities believe that this approach helps minimize errors and improves the quality of justice. In the field of healthcare, since 2022 Kazakhstan has been successfully operating the PneumoNet program based on artificial intelligence. This program makes it possible to detect 17 of the most pathogenic lung diseases, including pneumonia, tuberculosis, and cancer. Currently, Kazakhstan, Kyrgyzstan and Tajikistan do not have specific laws regulating the creation and use of AI. Despite this, the Strategy for the Development of Artificial Intelligence in the Republic of Tajikistan until 2040 notes that during the implementation of the first and second stages of said strategy, legal, institutional and infrastructural frameworks will be developed, and the necessary specialists will be trained. Unlike its neighbors, Uzbekistan adopted a presidential decree "On measures to create conditions for the accelerated introduction of artificial intelligence technologies" as early as 2021. This document has become the legal foundation for the further development of AI in the country, defining its main directions. The resolution emphasizes the need to develop...

Digitization

Kazakhstan Looks to Increase E-Commerce Share to 20%

The further development of e-commerce in Kazakhstan was considered at a government meeting on January 16th, chaired by Prime Minister Alikhan Smailov. The Minister of Trade and Integration, Arman Shakkaliev reported that in 2023 the volume of e-commerce in Kazakhstan exceeded 2.2 trillion tenge ($4.8 billion), equating to 13% of all retail trade, a 0.5% rise on the previous year. Household goods, clothing and footwear, food, cosmetics, and medicines are the most popular goods purchased online. The Ministry is looking to increase the share of e-commerce to 20% by 2030 by expanding the representation of domestic goods on popular marketplaces, developing warehouse and logistics infrastructure, and protecting consumer rights. The Prime Minister noted that globally, by 2025 the share of online trade is expected to exceed 25% of total retail. In Kazakhstan, a significant market share is occupied by foreign online marketplaces. “We must use this opportunity as an additional sales channel for Kazakh products on the world stage. At the same time, we need to develop domestic online stores. To do this, it is necessary to ensure the uninterrupted operation of payment systems, transport and logistics infrastructure, and courier services,” Smailov said. The Prime Minister instructed the relevant bodies to find effective solutions for the development of domestic online stores and broader representation of domestic commodity producers on foreign online marketplaces within a month. “We need our own bonded warehouses, which would simplify the process of delivering goods to both domestic customers and foreign ones. Therefore, it is necessary to launch the construction of bonded warehouses in Astana, Almaty, and Shymkent this year,” Smailov said.