e-Commerce - The Times Of Central Asia

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Kazakhstan’s Digital Exports Expand

Kazakhstan exported $471 million worth of IT services to 95 countries during the first nine months of last year, according to Zhaslan Madiyev, Minister of Digital Development, Innovation and Aerospace Industry (MDDIAI). The primary driver of export revenue in Kazakhstan's IT services market is Astana Hub, the largest international technology park for IT startups in Central Asia, located in the country's capital. Astana Hub is home to over 1,500 companies, including 400 international firms. In 2024, its total revenue reached 620 billion KZT ($1.1 billion), with export revenue amounting to 227 billion KZT ($428 million) across 92 countries. Additionally, the products of JSC "National Information Technologies" (NIT JSC), the operator of Kazakhstan’s “e-government” infrastructure, have also entered global markets. According to Madiyev, NIT JSC’s main exported products include Smart Data Ukimet, Smart Bridge, and Gov.kz: Smart Data Ukimet: An information-analytical platform designed for the secure collection, storage, and analysis of data from government information systems. Smart Bridge: A platform that simplifies integration processes between government agencies and private businesses through a "service showcase" model. Gov.kz: A unified platform for the online resources of government agencies. The export of Kazakhstan’s digital public services (GovTech) reached $2.7 million, with these solutions currently supplied to Tajikistan, Togo, and Sierra Leone. In addition to GovTech, Kazakhstan’s IT exports also include software, computer games, fintech solutions, and marketplaces. Among the largest exporters are five software developers, three computer game companies, one fintech firm, and one marketplace. “Most of the major exporters are foreign companies that have relocated to Kazakhstan, creating new jobs in major cities and regions, as well as contributing to export revenue,” said Madiyev. Kazakhstan has made significant strides in developing its IT infrastructure. The country now boasts 20 regional IT hubs that work closely with Astana Hub, fostering innovation across the nation. Furthermore, Kazakhstan is establishing an international network of IT hubs by opening IT offices in the United States, Saudi Arabia, Singapore, and the United Kingdom. “Kazakhstani startups now have foreign infrastructure to attract investment and expand their export markets,” said Madiyev. The minister also announced the launch of a fund of venture capital funds under the jurisdiction of the International Financial Center Astana (MFCA), based at Astana Hub. This fund, with an expected capital of $1 billion, will finance IT startups in Kazakhstan. As previously reported by The Times of Central Asia, Kazakhstan is home to 12 regional IT hubs that are actively contributing to the country’s growing digital economy.

Economy e-Commerce Digital Technologies Economic Cooperation taxes

eBay Officially Registers for Tax Purposes in Uzbekistan

The American e-commerce giant eBay has officially registered for tax purposes in Uzbekistan, according to UzDaily. As a result, eBay will now pay value-added tax (VAT) on its services in the country. Other global companies, including Netflix, Amazon, Google, Apple, and Zoom, are also registered with Uzbekistan’s special tax office for foreign digital companies. In total, 64 foreign companies are currently complying with the country’s VAT requirements. The Tax Committee of Uzbekistan reported that 61 foreign companies providing electronic services contributed 101.9 billion UZS (approximately $7.89 million USD) in taxes to the national budget between January and September 2024. This represents a 2.1-fold increase compared to the same period in 2023, highlighting the growing importance of foreign digital service providers in Uzbekistan's economy. In December 2024, Uzbekistan introduced new regulations requiring all companies providing e-commerce services to register as legal entities in the country. Despite their tax registrations, major platforms like eBay and Amazon have not yet established physical offices in Uzbekistan, raising questions about their long-term plans for expanding operations in the local market. In related news, The Times of Central Asia previously reported that Binance, one of the world’s largest cryptocurrency exchanges, will officially begin offering services to users in Uzbekistan. This move underscores the country’s growing focus on integrating global digital platforms into its economy. eBay’s registration for VAT in Uzbekistan marks another step in the country’s efforts to regulate and tax the growing digital economy. As more global companies comply with Uzbekistan’s tax requirements, questions remain about whether these platforms will deepen their presence in the country by establishing local offices.

Digital Service Internet e-Commerce Digital Technologies

Foreign Online Marketplaces to Be Registered in Kazakhstan

Kazakhstan’s Minister of Trade and Integration, Arman Shakkaliyev, has proposed introducing regulations requiring foreign online marketplaces operating in the country to register on a dedicated electronic platform. The proposal was discussed during a government meeting on e-commerce development held on January 14. As outlined by Shakkaliyev, the mandatory conditions for these platforms would include: Compliance with product safety standards; Measures to combat counterfeit products; Protection of consumer rights and personal data; and Adherence to tax and customs transparency requirements. Addressing Consumer Complaints The proposed measures aim to address a growing number of complaints from Kazakh citizens about foreign online trading platforms. Many of these platforms operate outside of Kazakhstan's jurisdiction, making it difficult - if not impossible - for customers to return or exchange goods due to geographic distances. Furthermore, goods purchased through foreign marketplaces often lack certification in Kazakhstan, raising concerns over product safety and quality. The Rise of E-Commerce in Kazakhstan In 2023, purchases on foreign online marketplaces in Kazakhstan totaled $1.3 billion, accounting for about 20% of the country’s total online sales. The sector continues to grow, with new foreign platforms entering the market. Notably, Russian marketplaces Ozon and Wildberries plan to establish three fulfillment centers in Astana and Almaty in 2024, with a combined area of 291,000 square meters. Kazakhstan’s e-commerce industry has witnessed rapid growth in recent years. According to the Ministry of Trade and Integration, e-commerce transactions from January to November 2024 amounted to approximately 3.2 trillion KZT (over $6 billion), representing 14.5% of the total retail trade and creating over 300,000 jobs. The government aims to increase e-commerce's share in total retail trade to 18.5% by 2029. Comparative Trends and Local Initiatives The Times of Central Asia previously reported that in 2023, Kazakhstan's e-commerce volume exceeded 2.2 trillion KZT ($4.8 billion), accounting for 13% of all retail trade - an increase of 0.5% compared to the previous year. In addition to regulating foreign platforms, Kazakhstan is fostering its domestic e-commerce sector. Recently, a new local online marketplace, Teez, was launched, with investments totaling $50 million. Teez boasts its own infrastructure, further strengthening the country's digital economy.

Digital Technologies e-Commerce Digital Service Digitalization Legislation

Uzbekistan Introduces New Rules for E-Commerce Platforms

The Cabinet of Ministers of Uzbekistan has issued a new decision titled “On Measures to Further Develop the E-Commerce Sector in Uzbekistan”, introducing updated regulations for e-commerce operators, including electronic trading platforms, order aggregators, and digital streaming service providers. Under the new regulations, only legal entities registered as residents of Uzbekistan can operate as e-commerce providers. This includes platforms that facilitate electronic transactions, such as marketplaces, aggregators, and streaming services. Entities or individual entrepreneurs that merely provide information about goods, services, or digital products without engaging in electronic contracts or transactions are not classified as e-commerce operators under these rules. From July 1, 2025, e-commerce operators in Uzbekistan must adhere to the following conditions: Legal Registration: Operators must be registered as legal entities in Uzbekistan. Compliance with Laws: Operators are required to follow legislation related to e-commerce, personal data protection, copyright, consumer rights, and advertising. Transparency: Upon request, they must provide information about their activities to authorized bodies free of charge. Retail Trade Rules: Operators must comply with retail trade regulations. Operational Standards: They must maintain an information system capable of ensuring the effective provision of services to e-commerce participants. These new measures are part of Uzbekistan’s broader efforts to regulate and encourage growth in its rapidly expanding e-commerce sector. Meanwhile, The Times of Central Asia previously reported that Russian e-commerce giant Wildberries is planning to enter the Tajikistan and Turkmenistan markets. Wildberries currently operates in Uzbekistan, Kyrgyzstan, Belarus, Kazakhstan, and Russia, offering a wide range of products, including clothing, footwear, electronics, and home furnishings. By setting clear rules for e-commerce operators, Uzbekistan aims to create a more structured and reliable digital marketplace, ensuring transparency, consumer protection, and compliance with international standards.

Domestic Entrepreneurs International trade UNDP e-Commerce Digitalization

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.

e-Commerce Finance Investments Banking Economy Environment ADB

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.