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A Taste of Kazakhstan: Interview with Almaty’s Apple City Cider

Englishman Alexander Thomas is the passionate founder of Apple City Cider, an Almaty-based craft cidery dedicated to producing high-quality, locally sourced ciders that celebrate tradition with a modern twist. With a deep-rooted love for orchards and fermentation, Thomas blends innovation with time-honored techniques to create crisp, flavorful ciders. TCA: What first brought you to Almaty, and what kept you here? AT: I used to work for the world’s largest publishing group, where I reported on different market sectors. When I covered aviation, I used to fly around the world to speak to different airline CEOs to discuss their route strategies and fleets. I first came to Kazakhstan to interview Air Astana’s CEO, Peter Foster. I was supposed to fly to Paris to speak with KLM and Air France, but that meeting was canceled, so I flew back to London. Sitting next to me, little did I know, was my future wife. In the same company, I very much enjoyed the coverage of the drinks industry. I had originally wanted to make wine in the south of France, but after marrying a Kazakh girl, we decided to start our business in Kazakhstan. Instead of pressing grapes in the South of France, we began pressing apples in Almaty. TCA: Can you tell us the inspiration for Apple City Cider? AT: We started the business because no one was making cider in the birthplace of the apple, around that time, cider was not even available to purchase in Kazakhstan. Around the same time we went on sale, another alcohol manufacturer began to produce cider as well, but we are the only cider specialists; the main business of the others is spirits and other alcoholic drinks. [caption id="attachment_28689" align="aligncenter" width="1706"] Image: TCA, Henry Kuvin[/caption] TCA: How did Almaty respond to your business idea, and what were the main challenges when establishing your company? AT: Consumers are very happy with the product and happy that we started our business here. Like other local companies, Almaty Cider has received a lot of positive support from the city; they love how it’s called “Almaty Cider.” The concept of eating locally and supporting local businesses is a global phenomenon, and Almaty is no exception. The fact that Almaty is the birthplace of the apple, proven by science, made it the ideal location to start such a business. The Malus Sieversii apple, native to the Almaty region, is perfect for cider. The levels of tannins, fruit sugar, and acidity, while not ideal for eating, make a great-tasting cider. TCA: Almaty, the place of abundant apples, does not have a huge cider culture – how has this changed since you established the business, and where do you see it going? AT: Cider was not available even as an imported product until about three to four years ago. Since then, we have seen imported brands come to the market, and people have developed a taste for it. In Russia, for example, there are now over 100 independent cideries. The first person...

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Kyrgyz Businesses and Government Meet to Discuss New Tax Initiative

Government officials, members of parliament, and entrepreneurs gathered at one of Kyrgyzstan’s largest business associations to discuss pressing issues affecting the country’s business environment, including taxation and efforts to streamline processes for entrepreneurs. The primary focus of the meeting was the introduction of the electronic bills of lading (EBL) system. The Times of Central Asia has previously reported on the challenges businesses face with this new system. The State Tax Service (STS) has pledged to revise the EBL system by the end of the month to address concerns raised by the business community. Almambet Shykmamatov, head of the STS, acknowledged that authorities had rushed the implementation of the EBL system without adequately considering the interests of businesses. “We understand that the market is a complex system that cannot be changed overnight. We are committed to dialogue and compromise. Our goal is not only to regulate but also to support businesses. That’s why continuous engagement with the business community is essential,” Shykmamatov stated. Beyond electronic bills of lading, entrepreneurs raised concerns over the lack of preventive measures in Kyrgyzstan’s system of fines. Akzhol Isayev, general director of Dordoi Security, highlighted that unlike Russia and Kazakhstan, which have legal provisions for issuing warnings, Kyrgyzstan imposes penalties without warnings. “Kyrgyzstan has 11 articles with fines, but none that provide for warnings,” Isayev explained. He also noted that some fines, which can reach as high as one million KGS (approximately $12,000), often lead to business closures or encourage corruption. Shykmamatov admitted that excessive tax pressure can harm the business environment. Consequently, participants decided to establish a working group to review and reform the system of penalties, aiming for a more business-friendly approach. Sergei Ponomarev, president of the Association of Markets, Trade, and Services Enterprises, emphasized that protecting private property is critical for attracting investment. However, he warned that businesses in Kyrgyzstan are hesitant to invest in real estate due to legal uncertainties. “An entrepreneur might honestly purchase property, invest in it, and create jobs, only to later discover that the land was acquired illegally 30 years ago. This uncertainty makes businesses afraid to commit to long-term projects,” Ponomarev said. To address this issue, the business community has proposed the introduction of a statute of limitations for real estate transactions. “It’s encouraging when the state not only listens to our problems but also offers constructive solutions. I am confident that this approach will improve the investment climate and raise the standard of living for our citizens,” Ponomarev added. The STS noted that similar meetings have been held with representatives of logistics companies, the Chamber of Commerce and Industry, and the American Chamber of Commerce in Kyrgyzstan.

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Kyrgyz Businesses React With Cautious Optimism To Tax Amnesty

The Kyrgyz government has announced a tax amnesty aimed at easing the financial burden on businesses and reducing the workload of the State Tax Service (STS). However, local entrepreneurs have received the initiative with cautious optimism. As part of the amnesty, President Sadyr Japarov has decreed the exemption of taxes on agricultural land, the cancellation of private vehicle taxes for citizens, and the write-off of all tax debts accrued before January 1, 2022. The initiative has been met with mostly positive reactions from Kyrgyzstan’s business community. Entrepreneurs noted that many small and medium-sized enterprises in the country are burdened with significant debts to the state. They believe this measure has the potential to improve the business climate - provided the government maintains a stable and predictable tax policy. “Such decisions were likely made to support entrepreneurs during a challenging economic period, stimulate economic activity, and improve the overall state of business in the country. It could also be part of a broader strategy to foster trust between the government and the business community,” the JIA Business Association, one of Kyrgyzstan’s largest business groups, told the Times of Central Asia. By writing off debts, the JIA representatives said, the government will significantly ease the financial strain on businesses across various sectors. This would allow many entrepreneurs to focus on recovery and growth, particularly after the economic setbacks caused by the COVID-19 pandemic. Despite these positives, the association expressed concerns over the fairness of the tax amnesty. “We hope that the amnesty will also include those businesses that were declared debtors by court decisions, but remain unable to pay their debts to this day. Additionally, there are social businesses - such as those in education and healthcare - that are registered as non-profit organizations but still face tax burdens. Including these entities in the amnesty would ensure greater fairness and also ease the workload of the tax service,” a JIA spokesperson explained. However, under the presidential decree, businesses or individuals with tax debts resulting from court rulings are not eligible for the amnesty. The Kyrgyz presidential administration estimates that the amnesty will result in the write-off of approximately 11 billion KGS (around $126 million) in tax debts for over 20,000 businesses. But while this decision is welcomed by many, it has drawn criticism from some quarters. Market representatives argue that the amnesty may be unpopular among diligent taxpayers who have consistently fulfilled their tax obligations and do not owe the state. Nonetheless, they acknowledged that the government’s decision demonstrates a willingness to be flexible. This includes addressing other concerns, such as issues surrounding the introduction of electronic commodity invoices, which have been controversial among entrepreneurs. “In the past three years, there has been significant progress in reforming tax administration. We anticipate further reforms, such as limiting the application of electronic goods invoices (ETNs) to specific types of goods or simplifying their use for small and medium-sized businesses. Efforts to improve digital tools for businesses, streamline tax administration, and increase public and business...

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Amid Discontent Among Entrepreneurs, Kyrgyz Authorities Ease Tax Burden

Kyrgyz President Sadyr Japarov has instructed the new Prime Minister Adylbek Kasymaliev and the head of the State Tax Service (STS) to develop a new fiscal policy that will not overburden citizens or force entrepreneurs to conceal their income. Special attention is to be paid to electronic bills of lading (EBL). Following a corruption scandal in the STS, the new head of the tax service, Almambet Shykmamatov, proposed abolishing the EBLs introduced by the government in the summer of 2024. At a parliamentary session, Shykmamatov explained that the EBLs were implemented to combat the shadow turnover of goods. However, the new reporting system has sparked numerous complaints from entrepreneurs. Shykmamatov stated, "I will find those who implemented the EBL system improperly and without analysis and ensure they are held accountable. I will explain what populism is and why simply raising taxes and calling it economic growth is unacceptable." EBLs (electronic bills of lading) replaced the so-called voluntary patents that entrepreneurs and market traders used to purchase monthly as a form of tax payment. Later, during a government meeting, Kasymaliev, head of the Kyrgyz Cabinet of Ministers, confirmed that despite widespread public protests, the authorities do not intend to abolish EBLs entirely but assured that the Cabinet will work to simplify the system and will study the possibility of revising the list of goods to be included in the reporting of EBL. The Times of Central Asia surveyed entrepreneurs who have been most affected by EBLs. Venera Mugalimova, a seller of electrical building supplies at a Bishkek market, said, "The introduction of EBLs has severely complicated my life. This system is unfeasible for me and all vendors working on consignment sales. In such cases, we first receive the goods, sell them, and only then settle the payment. The system doesn’t recognize 'consignment goods.' The company providing the goods on consignment cannot issue me an invoice without payment.” According to sellers, individuals offering paid training on how to use the EBL system have started to appear in Kyrgyzstan's online space, and their services are in high demand. "It’s a massive headache, although it depends on your business type. In my case, we deal with many small items—about 5,000 different products. Manually entering the name, price, and exchange rate for each product is problematic and very time-consuming," Alena, a wholesale seller of fabrics and clothing at Dordoi Market, told The Times of Central Asia. Her company not only sells goods but also imports them from nearby countries. "With EBLs, I lose a lot of time. Either I focus on reporting or work. Combining both is very hard, and we’d need to hire at least three accountants for the number of outlets we have. That’s additional expenses," the businesswoman noted. Sergey Ponomarev, President of the Association of Markets, Trade Enterprises, and Service Industries, commented to The Times of Central Asia that moving away from the patent system was crucial in combating the shadow economy. However, the current situation with EBLs looks less than optimistic.

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“Success is Possible in Kazakhstan”: An Interview with Fashion Brand Qazaq Republic

Qazaq Republic has become a popular brand among young people in Kazakhstan. The brand has become a success story for entrepreneurship within Kazakhstan and Central Asia. The Times of Central Asia spoke with Yermek Kazym, co-founder and CEO, to learn more about the brand, its message, and how it achieved its success. TCA: Qazaq Republic celebrates Kazakhstan’s heritage through fashion. What inspired the brand's creation, and what is its story? When the founder of Qazaq Republic, Saken Joldas, was studying in the US, he would always bring gifts from Kazakhstan for his friends. But the available options were always uninspiring. This led him to dream about creating something more appealing to showcase modern Kazakhstan's vibrant youth culture and style. In 2016, when the mayor of Almaty announced a competition to design a new city logo, Saken shared his designs with the public. He created digital versions of the design to print on mugs and t-shirts and posted them on Facebook. The response from the community was incredible—people loved the concept and showed great interest in purchasing the items. That’s how the idea for the brand began to take form, starting right in his kitchen. The first big order came from the Duty-Free store at Almaty Airport. They requested around 30 t-shirts to sell. As the business grew, Qazaq Republic was given space at the biggest toy and bookstore in Almaty, Meloman. With the rise in sales, we decided to open QR’s very first store. When designing it, we even considered adding a coffee shop in case the store didn’t work out. QR’s first store opened in November 2019 on 47 Mametova street, but then the pandemic hit. While malls were closing, our store had the advantage of being a standalone store. To help people feel better during difficult times, we created unique cotton masks with the phrase “Bari jaqsy bolady” (Everything will be alright). Instead of selling them, we gave them free of charge with orders over 5,000 tenge. Customers started placing smaller orders just to get these masks, giving us a strong sense of support and confidence that we were on the right track. TCA: Could you walk us through the creative process of designing a typical Qazaq Republic collection? We’ve built a solid foundation now. People used to think we were just buying ready-made items and putting our logo on them, but that's not the case. Like global brands such as Nike and Ikea, we design our products in Kazakhstan while outsourcing production and manufacturing to trusted partner factories in Turkey and China. We oversee every detail, from creating labels and designs to developing patterns, ensuring complete control over the process. This approach allows us to concentrate more on perfecting our products. The brand's uniqueness lies in creating products that make everyday life comfortable and functional while staying modern and high-quality. TCA: Who is the target audience for Qazaq Republic, and how has it evolved since the brand’s inception? When we first launched our brand, we assumed it...

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Kyrgyzstan Invests Over $356 Million in Women’s Entrepreneurship

The development of women’s entrepreneurship in Kyrgyzstan has received significant financial backing, with more than $356 million directed to supporting women-led businesses since the establishment of the OJSC (Guarantee Fund). According to the OJSC, in the first ten months of 2024 alone, 1,088 guarantees were issued to women, accounting for 40% of the total guarantees provided by the Fund during this period. To date, the Fund has issued 4,071 guarantees totaling 3.166 billion soms ($356 million), empowering women across all regions of Kyrgyzstan to launch and expand businesses in various sectors. Women’s entrepreneurship is becoming an increasingly vital component of Kyrgyzstan’s economy. According to the United Nations Development Programme (UNDP), women currently lead 29% of the country’s small and medium-sized enterprises. Bishkek recently hosted Expo 2024 “Women’s Entrepreneurship,” which showcased the accomplishments of women entrepreneurs while highlighting their growing role in driving innovation and economic growth. Furthermore, the Women’s Entrepreneurship 2024 program reported that 48% of all loans issued this year were granted to women, reflecting the expanding support for women-led businesses across the country. This upward trend highlights the growing recognition of women entrepreneurs as key players in Kyrgyzstan’s innovation ecosystem and economic development.