Local Economy - The Times Of Central Asia

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Kazakhstan Offers Low-Interest Loans for Agro-Industrial Sector

Kazakhstan’s Ministry of Agriculture has announced changes to rules concerning loans to agro-industrial projects. The new rules aim to both stimulate the development of Kazakhstan’s agro-industrial sector and create new or expand existing production facilities. Entrepreneurs will now be able to implement their projects using state loan funds at a preferential rate of 2.5% for up to 10 years. The maximum loan is 5 billion tenge. Loans will be prioritized for projects in twelve key areas including the creation of dairy farms, poultry farms for meat production, meat livestock enterprises, vegetable storage facilities, irrigated agriculture using modern water-saving technologies, industrial greenhouse complexes, fruit storage facilities, fish farming, fish processing enterprises, breeding reproducers in poultry farming, deep processing and storage of agricultural products, and production of packaging materials.

Women entrepreneurs Hospitality USAID Local Economy Tourism Education

USAID Supports Central Asian Women Working in Hospitality

The U.S. Agency for International Development (USAID) and the International Association of Businesswomen “Tadbirkor Ayol” last week hosted a Central Asian Conference on “Women of Central Asia in the Hospitality Business: Current Challenges and Opportunities”. The event in Tashkent attracted some 200 women entrepreneurs, professionals, and industry experts from Uzbekistan, Tajikistan, and Kyrgyzstan to discuss achievements, trends, and challenges in the region’s hospitality sector. As reported by the U.S. Embassy in Uzbekistan, the conference focused on service quality, digitalization, and modern standards in tourism, culminating in recommendations to enhance regional cooperation in tourism and hospitality. Praising the resilience and creativity of women in the hospitality industry and emphasizing their role in the sector’s future, Edward Michalski, USAID Deputy Mission Director in Uzbekistan, commented: “Investing in women and girls is essential to transforming communities. When women do better, families do better, communities do better, and countries do better.” Gulnora Makhmudova, Chairwoman of “Tadbirkor Ayol,” noted that the growing importance of the region’s hotel business and the increasing involvement of women, had spurred the association into launching “Women in the Hotel Business: Hospitality from the Future;” a project aimed to introduce innovation and digitalization in the hospitality sector. Since its launch in April 2024, with support from USAID, the project has provided training for 115 women in modern hotel management in Tashkent, Andijan, and Samarkand.

Livestock products International trade Export Local Economy

Turkey Lifts Restrictions on Import of Livestock and Poultry Products from Kazakhstan

Kazakhstan’s Ministry of Agriculture has announced that from June 7, 2024, restrictions on the supply of Kazakh livestock and poultry products to the Turkish market have been lifted. The restrictions were originally made to prevent the spread of avian influenza, in 2005, foot-and-mouth disease, in 2016, and lumpy skin disease, in 2022. In March 2024, the Minister of Agriculture of Kazakhstan, Aidarbek Saparov, raised the issue of export barriers during the meeting of ministers of agriculture of the Organization of Turkic States in Taraz, Kazakhstan. At the time, Saparov explained that Kazakhstan was ready to supply high-quality meat products to Turkey as well as Turkmenistan and Hungary, but complained that the Turkish market was all but closed to Kazakh meat exporters due to veterinary concerns. Pleading his case, he continued, “This year, similar restrictions on Kazakhstan have been lifted by China and Russia. So, we believe it is now possible to revisit this issue with the Turkish side.” With the restrictions now lifted, the next step towards exporting Kazakhstan’s livestock products will involve the coordination of veterinary requirements with Turkish authorities. The issue will be addressed during Minister Saparov’s next visit to Turkey in August.

Local Economy LPG Motor fuel

Price of Liquefied Petroleum Gas to Rise Again in Kazakhstan

The Ministry of Energy of Kazakhstan has published for public discussion, a draft by the Minister of Energy to increase the price of liquefied petroleum gas (LPG) from July 1. The maximum wholesale price of one ton of LPG will be increased from the current 40,320 tenge to 45,158 tenge, and the maximum retail price will increase slightly — by 5-8 tenge per liter, depending on the region. Cheaper than gasoline, LPG is the most popular fuel for vehicle owners in Kazakhstan. A sharp hike in the price of LPG was met with nationwide objection in January, triggering mass protests in Zhanaozen which spread nationwide and turned violent in Almaty and Astana. The ministry issued several reasons for what will be an unpopular move. First, the price of liquefied petroleum gas is much lower than the cost of its production. The production cost of LPG varies from 60 thousand to 70 thousand tenge per ton, whereas the current maximum wholesale price is 40,320 tenge per ton. Second, LPG consumption in Kazakhstan increases year on year. In 2023, it increased by 400 thousand tons, or 28%, compared to 2022. Last year, LPG consumption volumes amounted to 2.2 million tons compared to 1.8 million tons in 2022. Increasing consumption and the unprofitability of LPG production due to low prices have led to a decrease in the production of the fuel and its shortage in the regions. Today the deficit of LPG stands at 20-25%. Third, due to unprofitability, manufacturers are increasingly losing interest in LPG production and switching instead, to more profitable products. For the same reason, investors are also reluctant to invest in its production. Fourth, the price of LPG in Kazakhstan, between 54-86 tenge per litre depending on the region, is the lowest among former Soviet states. For comparison, the price per litre in Russia is equivalent to 132 tenge; in Kyrgyzstan, 159 tenge; in Azerbaijan, 171 tenge; and in Tajikistan, 273 tenge. According to analysts, in 2024, LPG consumption in Kazakhstan will increase by another 200 thousand tons and reach 2.4 million tons, leading to a potential shortage of 30-40%

UNESCO Local Economy Tourism Environment

British Magazine Ranks Kazakhstan’s Katon-Karagay Top Travel Destination

The Katon-Karagay district in Eastern Kazakhstan has been included in Asia & the Middle East's top sustainable travel destinations for 2024 by the British magazine Wanderlust. The district is home to Katon-Karagay National Park. Spanning over 643,000 hectares, the park was designated a Kazakh-Russian transboundary biosphere reserve in 2017 by the UNESCO World Network of Biosphere Reserves. In promoting the reserve, Wanderlust stated: “Five years ago, residents of the Katon-Karagay district – a sweep of lonely steppe, mountains and forests in far eastern Kazakhstan – faced a dilemma. Though home to the country’s largest national park and around 275 bird species, its 48 villages attracted few visitors, and there was little work available. As a result, its population had almost halved since the turn of the century, many residents having moved to cities in search of employment. So in 2019 the Sustainable Rural Development Fund was launched, with the aim of improving the quality of life in three remote districts, including Katon-Karagay. Key to this effort was the creation of sustainable community tourism opportunities, including training guesthouse owners and opening a hospitality school. Money has also been allocated to trail maintenance, signs and a tourist information centre, making it easier for travellers to explore a region whose communities and culture are finally being appreciated.”

Environment Transport EDB Local Economy

Green Light for Uzgen Bypass, South Kyrgyzstan

The Eurasian Development Bank (EDB) and a consortium comprising Tez Zhol, Zhagalmai, and DemirBank, have signed agreements to build and maintain a bypass road around the historic town of Uzgen in the Osh region of south Kyrgyzstan. According to EDB’s press office, the project which includes new information technologies for toll road management, aims to improve connectivity in the Osh region, enhance road safety and improve Uzgen’s environment. The Bishkek–Osh highway, one of the country’s main transport arteries and used by approximately 23,000 vehicles per day, causes serious issues for the densely populated town of Uzgen. The route through its center impacts the town’s socioeconomic situation by increasing levels of noise and pollution whilst congestion poses risks for pedestrians, exacerbating safety concerns. The projected timeline for such a large-scale project is 49 years, from 2024 to 2073, and comprising 14.1-km of new roads, three bridges and a toll management system, the estimated cost of its construction is US $29.9 million. Commenting on the initiative, Nikolai Podguzov, Chairman of the EDB Management Board, stated: “The Uzgen Bypass is the first toll road initiative in the Kyrgyz Republic. This project will increase the daily capacity of the Bishkek–Osh road from 8,000 to 12,000 vehicles, create approximately 300 jobs and boost demand for local industrial enterprises such as reinforced concrete and concrete plants. Additionally, it will improve the environmental situation and reduce the load on Uzgen’s roads by diverting traffic to bypass the residential sector.”