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Kazakhstan Takes Bold Steps to Revive Caspian Sea Fishing Industry

For the first time in over 30 years, commercial fishing has resumed in Kazakhstan’s section of the Caspian Sea. On December 20, Deputy Minister of Agriculture Amangaliy Berdalin attended the ceremonial departure of fishing boats targeting sprat from the port of Sarzha in the village of Kuryk, located in the Mangistau region. Commercial fishing in the Mangistau region was active before 1991 but declined after the dissolution of the Soviet Union. Its revival is part of Kazakhstan’s broader efforts to develop a sustainable fishing industry and bolster food security. One of the first steps in this revival was the purchase of two fishing vessels by Aktau Balyk Company LLP. The company aims to catch approximately 10,000 tons of Caspian sprat annually, providing this resource to the domestic market. Plans are already underway to expand operations. Next year, Aktau Balyk intends to acquire four additional vessels, increasing its fleet and boosting its annual catch volume to 30,000 tons. The government’s commitment to revitalizing the fishing industry is underscored by the Program for the Development of Fisheries until 2030. This initiative prioritizes fish farming as a cornerstone of the sector's growth. According to the program: Kazakhstan aims to produce 270,000 tons of fish annually through fish farming by 2030. The government seeks to increase domestic fish consumption to 134,000 tons annually. Fish imports are targeted to drop from 45,000 tons to 25,000 tons annually. This strategic push signals Kazakhstan’s determination to establish a thriving fishing industry to meet domestic demand and position the country as a competitive player in the regional seafood market.

Finance Banking EIB investment EU Engagement Economy growth Investment Projects EU International Finance

Securing EIB Funding in Kyrgyzstan: An Interview with VP Kyriacos Kakouris

Central Asia is rapidly developing its economy, with several international financial institutions successfully operating here. Among them is the European Investment Bank. Vice-President Kyriacos Kakouris spoke with The Times of Central Asia about its activity in Kyrgyzstan. TCA: Could you briefly introduce the European Investment Bank (EIB) and its main objectives in Kyrgyzstan? KK: The EIB is more than a bank, it is part of the EIB Group, one of the largest multilateral financial institutions in the world with a unique position allowing it to mobilize large-scale financing. The European Investment Bank, as the long-term financing institution of the European Union, is closely aligned with EU priorities, such as the EU-Central Asia strategy and the EU Global Gateway strategy, and is ready to play a more significant role in helping Kyrgyzstan respond more effectively to current and future challenges. The Bank has already been involved in economic development, transport, and climate action operations. We are interested in supporting the development of a competitive and environmentally friendly private sector that can incorporate modern and green technologies into various sectors. TCA: What are the EIB's priorities for supporting economic growth and sustainability in Kyrgyzstan? KK: EIB Global launched its activity in Kyrgyzstan in 2014 and up to now, has signed three separate operations worth a total of €112 million. We have established a very positive relationship with the Embassy of Kyrgyzstan in Brussels, which is essential for our dialogue with the Kyrgyz authorities. All operations involve co-financing either with other international financial institutions like the World Bank and the European Bank for Reconstruction and Development (EBRD) or development institutions such as KfW. So far, the Bank has approved lending operations for three projects on power transmission, water and waste management, and the agri-food sector, in line with the priorities defined in the EU-Central Asia and the EU Global Gateway strategies. The main aims of these projects are to protect the environment and take action against climate change. We will soon sign a €9 million top-up for the completion of the Kyrgyz section of the high-voltage transmission line known as CASA-1000. This project is part of a larger regional electricity scheme called Central Asia - South Asia Electricity Transmission and Trade initiative, covering Kyrgyzstan, Tajikistan, and Pakistan. This project is essential for developing trade in sustainable renewable electricity between the countries, using energy generated from renewable hydropower sources in the region. This will alleviate power shortages and increase export revenue in Kyrgyzstan and Tajikistan. TCA: How does the EIB's role differ from that of other development banks or financial institutions? KK: The EIB is the EU bank, and its shareholders are the 27 EU Member States. EIB Global is focused on EU policy priorities such as the EU strategy on Central Asia and the EU Global Gateway, supporting the green transition, boosting technological innovation, bolstering security and defense, and supporting regional cohesion and the development of social infrastructure. Our commitment to international development and capital market integration secures Europe’s strong global presence. Our...

Economy growth EBRD Banking Business Support Economic Reforms International Finance

EBRD’s Transformative Investments in Kyrgyzstan: An Interview With Hüseyin Özhan, Managing Director for Central Asia

The European Bank for Reconstruction and Development (EBRD), established in 1991, has been working in the Kyrgyz Republic since 1992 and has invested in over 250 projects amounting to over €1 billion. TCA sat down with Hüseyin Özhan to discuss the bank’s operations in Kyrgyzstan. TCA: Could you briefly introduce the EBRD and its main objectives within Kyrgyzstan? Özhan: The European Bank for Reconstruction and Development (EBRD) is owned by 73 shareholders as well as the EU and the EIB and has been operating in Kyrgyzstan for over 30 years. During this time, we have invested in more than 250 projects, surpassing €1 billion in total investments across the country. As an international financial institution, our operations in Kyrgyzstan are guided by a country strategy jointly prepared by the EBRD and local stakeholders and approved by the Bank’s Board of Directors. This year marks a significant milestone, as we have approved a new five-year country strategy outlining our priorities in Kyrgyzstan. We focus on fostering private sector growth and enhancing competition and also invest in infrastructure and sovereign-guaranteed projects. These efforts position the EBRD as one of the most influential international players in Kyrgyzstan. TCA: You mention the bank recently approved its new five-year strategy for Kyrgyzstan; could you share what this plan entails? Özhan: Our country's strategies are built on diagnostics conducted to identify transition gaps. These strategies align with the EBRD’s Strategic and Capital Framework and the Bank’s medium-term strategy and combine elements of the reform agenda and investment needs. The new strategy for Kyrgyzstan focuses on three key priorities: private sector development and competitiveness, the green economic transition with an emphasis on decarbonization and energy efficiency, and improved connectivity across the country. These priorities align closely with Kyrgyzstan’s recent reform agenda and development goals, which aim to enhance competitiveness, attract foreign investment, boost trade, and strengthen the country’s regional relevance. Decarbonization and resource efficiency are particularly critical, as Kyrgyzstan is significantly impacted by regional water scarcity. This makes sustainable water management a central focus, with numerous projects planned to support sustainable development in this sector. Additionally, developing the private sector, particularly local businesses, is vital. The EBRD works closely with the government in this regard, not only by providing funding but also through initiatives like “risk-sharing networks” and advisory programs for small businesses. These efforts help enhance productivity, relevance, and competitiveness, ensuring that Kyrgyzstan’s private sector is well-equipped to thrive in the market. TCA: How does EBRD’s mission differ from other development banks or financial institutions in the region? Özhan: Our institution has a slightly different approach to delivering our work and fostering transition in Kyrgyzstan. Unlike some other international financial institutions (IFIs) that provide budget support, the EBRD operates on a project-by-project basis and channels most of its resources to support good private-sector initiatives. A recent example of project finance is the signing of water projects in three cities in Kyrgyzstan. These sovereign lending agreements, signed with the Ministry of Finance, aim to modernize regional water...

Finance Banking ADB Infrastructure Development Economy growth Transportation

ADB to Help Upgrade Strategic Road in Kazakhstan

The Asian Development Bank (ADB) has approved a sovereign-guaranteed local currency loan of up to $291.49 million for KazAvtoZhol, the company overseeing the planning, construction, operation, and maintenance of Kazakhstan's national highways. This loan will support reconstructing a 208-kilometer road connecting Kyzylorda and Zhezkazgan in central Kazakhstan. The project will upgrade the existing two-lane highway to a higher-standard, climate-resilient two-lane road, providing all-weather access and reducing travel time from 4 to 2 hours. The reconstruction will also improve domestic and regional connectivity and road safety and promote national and international trade. ADB Director General for Central and West Asia Yevgeniy Zhukov commented: “By improving the Kyzylorda–Zhezkazgan corridor, we are addressing critical infrastructure constraints that hinder Kazakhstan’s economic growth and balanced regional economic development. The project road is also crucial for leveraging Kazakhstan’s geostrategic advantage and boosting regional and global integration.” Kazakhstan, the largest economy in Central Asia, is well-positioned to become a bridge between Asia and Europe. However, due to inefficiencies and high transport and logistics costs, the country needs help leveraging its strategic position. The country has also seen a high traffic fatality rate, with 12.2 deaths per 100,000 people in 2021. The ADB project incorporates rumble strips, safer pedestrian crossings, and interchanges to improve road safety. These measures are expected to significantly reduce accidents and enhance the overall safety of the road corridor.

Economy growth multimodal transportation Infrastructure Development Construction Local Economy

Kazakhstan Opens its Longest Bridge

The Kazakh government's press service has reported that on October 21, Prime Minister Olzhas Bektenov attended the opening of Kazakhstan’s longest bridge. Spanning 1,316 meters across the Bukhtarma Reservoir, the new bridge which connects six districts of Kazakhstan's eastern region, can accommodate up to 80,000 vehicles per day and reduce travelling time from hours to minutes. In his address at the launch, the president stressed that the bridge would allow for safe year-round traffic and accelerate the region's socio-economic development, stating: "For 50 years, residents of the region traveled [across the reservoir] either by ferry in the summer or directly on the ice in the winter and have been waiting for the bridge's construction for a long time." East Kazakhstan is a strategic region through which important transport corridors pass. The bridge across the Bukhtarma Reservoir will improve transport and logistics routes, ensure uninterrupted connections with bordering countries, and help unlock the region's tourism potential. The new bridge follows the opening of the country's longest automobile tunnel in September at the Shakpak Baba Pass in southern Turkestan.

China Industry Automobile Industry Economy growth Economic Cooperation

Accelerating Growth: Uzbekistan’s Automotive Industry Continues to Expand

Uzbek-Singaporean company Technologies of Real-Time plans to start producing components for such famous brands as BYD, Chery, Changan, Geely, and Dongfeng, it was announced during President Mirziyoyev's visit to the Tashkent region. The project will cost $115 million and is planned to be realized by 2025. As a result, 43 new jobs will be created, and production capacity will increase from 180,000 to 280,000 units annually. The automobile industry is a critical component of the Uzbek economy, with car production growing almost threefold in recent years. By the end of this year, production volume is expected to reach 460,000 units, and by 2030, it is planned to increase this figure to 1 million. Two new private enterprises and international brands have been brought in to eliminate monopolies and promote competition in the industry, with more than 20 plants in the country producing a wide range of cars and trucks. In response to the growing demand for spare parts, more than 300 enterprises have joined a cooperative network, including Technologies of Real-Time in Zangiat. In November 2019, the President familiarized himself with the products of this enterprise at an international industrial fair, and recommended its further expansion. As a result, extensive modernization has been carried out, and new equipment from China, Russia, South Korea, Japan, and the United States has been installed in 12 workshops. Currently, more than 750 types of spare parts for 118 car models are produced here. The enterprise has created 220 jobs. Products are supplied to the domestic market, including to the Uzavto Motors plant in the Khorezm region, where 773,000 spare parts for Damas and Labo were shipped. Spare parts are also in demand abroad: last year, exports amounted to $3 million, including deliveries to Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan.