e-Commerce - The Times Of Central Asia

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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.

Economy e-Commerce ADB Environment Banking Investments Finance

ADB to Support Climate-Friendly Business Environment in Tajikistan

The Asian Development Bank (ADB) says it has approved a $50 million policy-based grant for a program that will help the government of Tajikistan foster a climate-responsive business environment and support small and medium-sized enterprises (SMEs) in the country. The program aims to transform Tajikistan's business environment through digitization, reforms to increase exports, improvement of infrastructure governance, fiscal transparency, and support for climate-friendly SMEs. Underscoring ADB's commitment to supporting Tajikistan in its transition to a green economy, ADB Director General for Central and West Asia Yevgeniy Zhukov commented, “By promoting climate-responsive investments and improving the overall business environment, we aim to stimulate economic growth, create green jobs, and enhance the country's resilience to climate change." The program will support reforms subsidizing climate-friendly SMEs, and prioritizing funding for female entrepreneurs. It advances digitization and e-commerce through the Agency for Innovation and Digitization and the approval of the E-Commerce program. The program will also support enhanced public investment management through assessments to recommend improvements and prioritize climate-focused projects. Fiscal transparency will improve the Ministry of Finance’s capacity to publish government finance statistics. The program will also promote international trade and investment by streamlining trade documentation processes and updating regulatory frameworks for issuing local and green bonds.

CA-store EBRD e-Commerce Retail

Uzbek Electronics Retailer Secures EBRD $10 Million Loan

On July 1, the European Bank for Reconstruction and Development (EBRD) announced its support to further develop retail standards and e-commerce in Uzbekistan by financing the expansion of one of the country’s leading consumer electronics and household appliances chains, CA-store (formerly Credit Asia). The loan of up to $10 million will finance the working capital required by CA-store for its expansion beyond the capital city of Tashkent. It is expected that in the coming years, the Uzbek retailer will extend its business to all the country’s major cities. The funds will also be used to develop CA-store’s online sales by introducing new e-commerce standards in Uzbekistan’s fast growing e-commerce market and offer online shopping to customers across the country. CA-store’s increased regional coverage will contribute to the reduction of the shadow economy by offering authentic goods and fully complying with national tax requirements. Integral to the project, is a commitment by CA-store to create equal and fair employment opportunities for staff.

International trade International Cooperation e-Commerce

Kazakhstan to House One of Central Asia’s Largest E-Commerce Distribution Centres

On July 1, Minister of Trade and Integration of Kazakhstan Arman Shakkaliev met Chairman of the Board and founder of China’s YTO Express Co., Yu Weijia, to discuss the construction of one of the largest e-commerce distribution centres in Central Asia. As reported by the Ministry of Trade and Integration, the introduction of intelligent IT solutions to fully automate logistics processes and provide customs support for deliveries, will enable the prompt processing of goods destined for European Union, Eurasian Economic Union and Central Asian countries. During the meeting, Minister Shakkaliev noted the rapid development of the e-commerce market in Kazakhstan, demonstrated by an annual growth rate exceeding 20%, and stated: “China's e-commerce market is astonishing in terms of volume, where more than 70 percent of sales are made online. Kazakhstan, with its favorable geographical location, aims to become a key transit zone for international e-commerce. The joint project with Kazpost to establish a distribution centre in Kazakhstan will give a new impetus to the development of cross-border trade.” Emphasizing the project's unique status in Central Asia, Yu Weijia remarked, “This is a long-term project that will strengthen mutually beneficial and productive cooperation between the two countries. As part of this cooperation, we opened 3 bonded warehouses in China: in Shanghai, Nanjing and Wuhan. This project is the only one in Central Asia that will cover the whole region.”

International trade International investment e-Commerce Employment Logistics

Russian Online Retailer Wildberries to Build Logistics Center in Kyrgyzstan

Wildberries, Russia’s largest online marketplace, is set to build a logistics center spanning 300,000 square meters in the Chui region of northern Kyrgyzstan to service cross-border e-commerce. The initiative was confirmed on 16 May in Kazan, Russia, in the signing of a Memorandum of Understanding and Cooperation by Wildberries, the Kyrgyz Ministry of Economy and Commerce, and the Office of the Plenipotentiary Representative of the President of the Kyrgyz Republic in the Chui region. The large-scale infrastructure project represents an important milestone in trade and economic cooperation between Russia and Kyrgyzstan. As part of its positive impact on the Kyrgyz economy, the ministry says the initiative will help raise employment, and increase the volume of the economically active population through the development and emergence of new small and medium-sized enterprises, contractors, and buyers. Kyrgyzstan is currently home to two other Wildberries centres in Bishkek and Osh servicing some 130 order delivery points across the country. E-commerce is rapidly growing in Kyrgyzstan and to date, over 17,000 Kyrgyz sellers are registered on the Russian marketplace, compared to about 7,000 in 2022.

Tajikistan e-Commerce

World Bank Supports Development of Tajikistan’s Emerging E-Commerce Market

On March 1st, Dushanbe played host to ‘Elevating Global Access through E-Commerce (E-GATE)’, a conference organized by the World Bank and the IFC. A first for Tajikistan, its goal was to facilitate knowledge and resource exchange amongst the country’s small and medium enterprises as well as with regional and global players in the e-commerce ecosystem. “Recognizing the pivotal role e-commerce plays in modern economies, the World Bank is actively supporting Tajikistan in its journey to develop appropriate platforms, including E-GATE,” said Ozan Sevimli, World Bank Country Manager for Tajikistan. “The E-GATE program offers Tajik small and medium enterprises highly valuable membership of global B2B e-commerce platforms to access markets unavailable offline, and provide technical support to the government on drafting enabling legislation, and channel global knowledge to Tajik e-sellers through capacity building activities.” The conference attracted e-commerce stakeholders from Tajikistan, Kazakhstan, Kyrgyzstan, Turkmenistan, and Uzbekistan, as well as global e-commerce giants including Amazon and Alibaba. In landlocked Tajikistan, as in the whole of Central Asia, the emergence of e-commerce is proving a powerful tool to tap into global markets for locally made products, modernize traditional supply chains, and foster growth in employment opportunities. To ensure the smooth functioning of E-commerce operations, Tajikistan recently introduced a ‘On Electronic Commerce’ law. According to ECDB, a specialized e-commerce data analytics company (https://ecommercedb.com/markets/tj/all), Tajikistan is currently one of the smaller markets for e-commerce. The predicted revenue for 2024 is $17.1 million but once developed, is expected to increase by 5.4% per annum resulting in a projected market volume of $21.1 million by 2028.