Investments - The Times Of Central Asia

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Kazakhstan Aims to Nearly Triple Investment in the Economy by 2029

Kazakhstan plans to significantly increase investment in its economy over the next five years, aiming to nearly triple current levels. However, officials from the Ministry of National Economy acknowledge that the primary challenge lies not in securing additional funds but in the shortage of high-quality investment projects. Shortage of Viable Projects At a recent meeting of the Expert Council under the Ministry of National Economy, Deputy Minister Arman Kasenov stated that the ratio of domestic investment to GDP currently stands at a modest 14-15%, a figure he described as objectively low. “To achieve higher rates of economic growth, investments need to increase 2.75 times, from $40 billion in 2024 to $103 billion by 2029,” Kasenov stated. To help reach this target, the government plans to allocate KZT 1 trillion (approximately $2 billion) through the state holding company Baiterek to stimulate business lending. This amount is expected to catalyze additional credit lines totaling KZT 8 trillion (around $15.9 billion). Still, Kasenov stressed that financing alone is not enough. “The real issue is the lack of quality projects,” Kasenov said. “This problem has been flagged by international development finance institutions. When we talk about increasing investment from $40 billion to $103 billion, it’s not just about capital, it's about where and how that capital is deployed.” Targeting High-Return Sectors To ensure impactful investment, the Kazakh government is prioritizing support for highly productive and export-oriented projects. These are concentrated in key sectors such as metallurgy, oil and gas, petrochemicals, and agriculture. Rustam Karagoyshin, the head of Baiterek Holding, outlined the financing model for investment projects, which consists of 60% market funding and 40% state-backed lending. In 2025, Baiterek plans to disburse a total of KZT 8 trillion in project financing, with KZT 3.75 trillion (around $7.4 billion) provided in the national currency. “Our main objective is to unify lending rates at 12.6% for end consumers. Standardizing rates will enable second-tier banks to participate across nearly all sectors where Baiterek operates today,” Karagoyshin said. Foreign Investment Outlook As The Times of Central Asia previously reported, Kazakhstan is looking to attract more foreign direct investment following a notable decline in 2023. Amid growing concerns about resource nationalism, the government is eager to position itself as a stable and attractive destination for international capital.

Turkestan region Cotton Cluster China Investments

Chinese Investor to Launch $400 Million Cotton Cluster in Southern Kazakhstan

Chinese company Xinjiang Lihua (Group) Co., Ltd. plans to invest nearly $400 million to establish a cotton-textile cluster in Kazakhstan’s Turkestan region. The announcement was made by Zhang Qihai, Chairman of the Board of Directors of Xinjiang Lihua, during a meeting with Kazakhstan’s Prime Minister Olzhas Bektenov. The large-scale investment project will be implemented within the TURAN Special Economic Zone, located in southern Kazakhstan. It envisions a vertically integrated cotton agro-industrial complex, from cultivation to the production of finished textile goods, including yarn, fabric, and clothing. More than 50,000 hectares of land have been allocated for cotton cultivation. The project also includes the construction of ten factories. Two of these will manufacture drip irrigation systems using modern water-saving technologies. Four others will handle the primary processing of cotton near the fields. The remaining four facilities, including garment, dyeing, and finishing factories, will produce the final textile products. The total investment exceeds 200 billion tenge (approximately $398 million), and the cluster is expected to create 3,000 permanent jobs in the region. To support the project’s needs, a plant for producing polyvinyl chloride (PVC) pipes has already been launched, and construction of the textile factories is underway. Xinjiang Lihua is also developing an irrigation system, including a canal network fed by a dedicated pumping station. Chairman Zhang Qihai praised Kazakhstan’s favorable investment climate and the region’s suitable agricultural conditions. He noted that the first finished products from the cluster are scheduled for release by October this year. “The creation of a cotton-textile cluster in Turkestan Region contributes to increasing the added value of domestic products, promoting agricultural development through processing, and enhancing the country’s export potential,” said Prime Minister Olzhas Bektenov. “The government will provide all necessary support for this initiative.” As previously reported by The Times of Central Asia, China also plans to support the establishment of a Scientific and Technical Innovation Center for Hydrogen Energy in Kazakhstan.

Hydrogen Innovation Center Hydrogen Energy China Investments

China to Support Hydrogen Innovation Center in Kazakhstan

On March 20 in Beijing, Kazakhstan’s National Nuclear Center, part of the Ministry of Energy, signed a memorandum with China Energy Overseas Investment Co., Ltd. and Shanghai Jiao Tong University to establish a Scientific and Technical Innovation Center for Hydrogen Energy in Central Asia. The facility will be located in the city of Kurchatov, in Kazakhstan’s Abai Region, according to a statement from the Ministry of Energy. The future center is intended to serve as a key scientific and technological platform for research, testing, and the implementation of advanced hydrogen energy solutions. It aims to boost Kazakhstan’s competitiveness in the hydrogen sector, foster international cooperation in green energy, support innovative energy projects, and help train a new generation of highly qualified specialists. “Hydrogen energy is one of the key areas of the global energy transition,” said Deputy Minister of Energy, Bakytzhan Ilyas. “Kazakhstan has significant potential in this area, and the creation of the center in Kurchatov will open up new opportunities for the development of science, technology, and industry.” The initiative is also closely tied to Kazakhstan’s long-term climate goals. The center is expected to support the country’s strategy to achieve carbon neutrality by 2060 and to promote the adoption of environmentally friendly technologies in the energy sector. In September 2024, Kazakhstan approved its Concept for the Development of Hydrogen Energy until 2030. The policy outlines key objectives including: Fulfilling international commitments to reduce greenhouse gas emissions Advancing the national goal of carbon neutrality Expanding access to modern, sustainable energy sources While the strategy prioritizes hydrogen technologies as a cornerstone of Kazakhstan’s low-carbon transition, the global hydrogen sector remains in its early stages, and significant technical and economic hurdles must still be overcome.

Dangara-Guliston road EBRD Tajikistan Investments

EBRD and ADB Finance Upgrade of Key Road in Tajikistan

The European Bank for Reconstruction and Development (EBRD) has announced a loan to finance the upgrade and expansion of the Dangara-Guliston road in Tajikistan. Built in the 1930s as part of a major international highway, this road serves as a crucial link between the north and south of the Khatlon region, an area that produces more than 53% of Tajikistan’s agricultural output and is home to 35% of the country’s population. Financing and Project Scope The EBRD’s sovereign loan of up to €38 million will help finance improvements to a 49-kilometer section of the road, including the construction of charging infrastructure for electric vehicles. The Asian Development Bank (ADB) will provide $86.7 million (€83.5 million) in grant financing to support the project. The upgrades will convert the existing single-lane road into a dual-lane highway, significantly improving transportation efficiency and reducing cargo delivery times across the Khatlon region and beyond. Additionally, the upgraded road will feature: Improved lighting Cycle paths Pavements for pedestrians Electric Mobility and Sustainability This will be one of the first roads in Tajikistan equipped with charging stations for electric vehicles (EVs), encouraging wider EV adoption in the country. The EBRD will also provide a technical cooperation grant to develop a national electric mobility action plan, aimed at stimulating public and private investment in sustainable transportation infrastructure across Tajikistan. EBRD's Broader Investment in Tajikistan To date, the EBRD has invested over €1 billion in Tajikistan through 183 projects, supporting key sectors such as infrastructure, energy, and private enterprise development.

Kyrgyzstan Investments English Common Law

Kyrgyzstan Explores English Common Law to Boost Investment Appeal

On March 11, Adylbek Kasymaliyev, Chairman of Kyrgyzstan’s Cabinet of Ministers, met with British Ambassador Nicholas Bowler and a group of international consultants to discuss adopting English common law principles for resolving investment disputes in Kyrgyzstan. English common law is a legal system based on judicial precedents rather than codified statutes. According to the Kyrgyz government’s press service, the meeting focused on establishing an independent arbitration mechanism to handle investment and commercial disputes under English common law. This initiative aims to enhance Kyrgyzstan’s investment appeal and strengthen investor protections, key factors in attracting foreign capital for sustainable economic growth. Discussions also covered potential funding models for consulting and methodological support necessary to implement the initiative successfully. Another key topic was the possible creation of a special investment zone with a distinct legal framework designed to offer more favorable conditions for businesses and investment projects. Kasymaliyev underscored that creating a business-friendly environment and guaranteeing robust legal protections for investors are top priorities for Kyrgyzstan. He stated, “We are keen to study and apply international practices, including English law, to boost investor confidence in our legal system.” Ambassador Bowler reaffirmed the U.K.’s willingness to share its legal expertise to support Kyrgyzstan’s economic development and investment climate. The introduction of English common law principles for resolving investment disputes could improve investor confidence in Kyrgyzstan’s legal framework, ensuring greater predictability and security for foreign investments.

Seed Production Agriculture Investments

Uzbekistan to Invest $200 Million in Seed Production

Uzbekistan is expanding international cooperation in agriculture, with President Shavkat Mirziyoyev reviewing new sector development plans on March 3. The country is implementing agricultural reforms aimed at boosting efficiency through modern technologies and scientific research. Recently, Uzbek experts visited China, Italy, and Japan to study advanced farming practices, leading to new partnerships in the sector. Seed Production: A Key Priority High-quality seed production is essential for increasing crop yields. While Uzbekistan has 14 agricultural research institutes and 55 seed farms, they struggle to develop new seed varieties. As a result, many farmers rely on imported seeds, which are often more effective than local alternatives. To address this issue, Uzbekistan will establish a national seed and nursery system based on China’s agricultural model. The project, to be launched at the Agro-Service Center in Yukorichirchik district, will receive a $200 million investment. It will focus on developing improved varieties of cotton, wheat, rice, corn, grapes, and fruit. Additionally, a model farm will be created, integrating modern equipment and drone technology. Investing in Agricultural Education Developing skilled agricultural professionals is another challenge. Uzbekistan is looking to Italy’s education system as a model, particularly the University of Bologna, which trains specialists for European agriculture. This year, 200 Uzbek students will study at Bologna, Tuscia, Ferrara, and Pisa universities. The University of Tuscia will also offer 30 annual scholarships for Uzbek students. Uzbekistan is further expanding practical training opportunities abroad. Uzbek students have already completed internships in Germany and the UK, while universities in Tashkent and Fergana are establishing Japanese language centers to prepare students for study in Japan. Expanding Global Cooperation Mirziyoyev has called for stronger ties with Hungary, the Netherlands, Canada, Australia, and South Korea. In response, the Ministry of Agriculture is developing new initiatives to introduce innovative agricultural practices across the country.