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Finance

ADB Approves $300 Million Loan to Support Small Business Growth in Uzbekistan

The Asian Development Bank (ADB) has approved a $300 million policy-based loan to boost the development of micro, small, and medium-sized enterprises (MSMEs) in Uzbekistan, with a particular focus on women-led businesses. The bank announced the decision on November 12. Of the total funding, $100 million will be provided on concessional terms to expand access to finance for MSMEs and strengthen Uzbekistan’s microfinance sector. The loan forms part of the second phase of the ADB’s Inclusive Finance Sector Development Program, which builds on earlier efforts to improve the legal and institutional framework for inclusive finance in the country. Key reforms have included raising the ceiling on microloans, modernizing microfinance regulations, joining the Women Entrepreneurs Finance Code, and introducing frameworks for Islamic microfinance. “ADB is proud to support Uzbekistan’s transition to a more inclusive and market-based financial system,” said ADB Country Director for Uzbekistan Kanokpan Lao-Araya. “This program will help unlock access to finance for the self-employed and microentrepreneurs, promote gender equality, and strengthen consumer protection in the financial sector.” The latest phase of the program introduces new policy measures aimed at enhancing responsible lending, regulating emerging products such as “buy now, pay later” services, and strengthening digital financial supervision. It also advances gender equality by supporting sectoral policies that implement gender-based financing quotas and improve the reporting of sex-disaggregated data. An evaluation of Uzbekistan’s National Financial Inclusion Strategy (2021-2023) revealed that 60 percent of adults now hold accounts with formal financial institutions, a significant gain attributed to rapid digitalization. The new program aims to further modernize the microfinance sector by allowing the creation of deposit-taking microfinance banks, two of which have already received preliminary licenses. This year marks the 30th anniversary of ADB-Uzbekistan cooperation. Since 1995, the bank has committed $14.6 billion in loans, grants, and technical assistance to the country. Uzbekistan has also been selected to chair the ADB Board of Governors for 2025-2026. Samarkand is set to host the ADB’s 59th Annual Meeting in May 2026.

Construction

Small Firms Power Kyrgyz Construction Surge

The turnover of small and medium-sized enterprises (SMEs) in Kyrgyzstan’s construction sector has increased 2.5 times over the past five years, according to national statistics. Medium-sized and small businesses have become key drivers of growth in one of the country’s most important economic sectors. In 2020, the volume of work performed by SMEs in construction amounted to 70 billion KGS ($802 million). By the end of 2024, this figure had risen to 185 billion KGS ($2.1 billion). Role of Individual Entrepreneurs More than half of total construction output in 2024 was attributed to individual entrepreneurs. Their main advantage lies in the ability to respond quickly to shifting demand in the housing and infrastructure markets. Their contribution was estimated at 95 billion KGS ($1.08 billion). Small construction firms also recorded substantial growth, tripling their output to 65 billion KGS ($745 million) in 2024. Medium-sized companies posted the fastest expansion: in 2022, they delivered projects worth 7.8 billion KGS ($90 million), rising to 25.2 billion KGS ($289 million) in 2024. Sector Growth Outpaces the Economy The Eurasian Economic Commission previously reported a 40% increase in Kyrgyzstan’s construction sector during the first half of 2025. In the first five months of the year alone, construction volumes nearly doubled compared to the same period in 2024. As previously reported by The Times of Central Asia, Kyrgyz authorities have designated construction as a strategic priority for national development. Investment in residential housing, infrastructure, and social facilities quadrupled in the first five months of 2025, reaching $800 million. Kyrgyzstan’s GDP grew by 11.5% in the first seven months of 2025, with construction contributing 3 percentage points and the services sector accounting for approximately 5 percentage points.

Trade

Electronic Queue System Launched at Key Kyrgyz-Uzbek Border Crossing

An Electronic Queue Management System (e-QMS) has been launched at the Dostuk border crossing, the primary checkpoint between Kyrgyzstan and Uzbekistan along the Osh-Andijon road. The initiative, developed through cooperation between the Kyrgyz government, the European Union, and the International Trade Centre (ITC), is part of the “Ready4Trade Central Asia” project (2024-2028), which aims to streamline trade procedures and boost economic competitiveness across the Trans-Caspian Transport Corridor. Funded by the European Union, the project is designed to simplify cross-border operations and improve conditions for small and medium-sized enterprises. The e-QMS platform, developed by the ITC in collaboration with Kyrgyzstan’s State Customs Service and Ministry of Economy and Commerce, allows transport operators to pre-book border crossing times online or via a mobile app. The system is expected to reduce waiting times, ease congestion, and improve the predictability of border transit, benefiting both carriers and customs authorities through greater transparency, efficiency, and safety. “For Kyrgyzstan, the implementation of e-QMS is a cornerstone in creating a business-friendly environment for exporters. The new system simplifies procedures, reduces costs for exporters and carriers, and makes trade more transparent and efficient,” said Iskender Asylkulov, Kyrgyzstan's Deputy Minister of Economy and Commerce. The system was initially piloted at the Kyzyl-Kiya border crossing in November 2024, where it processed more than 12,000 vehicles in its first six months. Following positive feedback from transport operators and significant reductions in wait times, the system has now been expanded to Dostuk, one of the region’s busiest crossings. In 2024 alone, over 87,000 vehicles passed through Dostuk, including more than 21,000 import consignments, nearly 8,000 export shipments, and over 58,000 transit movements. The deployment of the e-QMS is expected to further boost trade between Kyrgyzstan and Uzbekistan, which reached $846 million in 2024. From January to June 2025, bilateral trade turnover totaled $430.2 million, $50 million more than during the same period in 2024, according to data from Uzbekistan’s National Statistics Committee.

Business

Kazakhstan and Germany Extend Business Partnership Program Through 2028

Kazakhstan and Germany have signed an agreement to extend their long-running “Partnering in Business with Germany” program until 2028, reinforcing bilateral economic cooperation with a particular focus on small and medium-sized enterprises (SMEs). Jointly implemented by Kazakhstan’s Ministry of National Economy and Germany’s Federal Ministry for Economic Affairs and Energy, the program has been in operation for 15 years. More than 800 Kazakhstani entrepreneurs have participated, gaining hands-on training in Germany, learning best business practices, modernizing their operations, and securing contracts, licenses, and franchise agreements. In 2025, the German side will continue to fully cover costs for participants, including training, insurance, and accommodation. Deputy Minister of National Economy Yerlan Sagnayev emphasized that the program not only fosters professional development among Kazakhstani entrepreneurs but also contributes to deepening long-term economic ties between the two nations. Germany is Kazakhstan’s largest trading partner within the European Union. At the 16th Kazakhstan-German Business Council meeting held in Astana in May, it was revealed that Kazakhstan ranked 43rd among Germany’s global trade partners in 2024 and accounted for 83% of Germany’s trade volume with Central Asia. Energy remains a central pillar of bilateral cooperation. Kazakhstan began exporting crude oil to Germany via the Druzhba pipeline in 2023, with volumes expected to rise to 1.5 million tons in 2025, up from 993,000 tons in 2023.

Entrepreneurship

Kyrgyz Authorities Introduce Incentives for Businesses to Avoid Inspections

The Ministry of Economy and Commerce of Kyrgyzstan has announced that companies included in the newly created Register of Conscientious Entrepreneurs will receive a range of state-backed privileges, including financial incentives and regulatory relief. “The Register of Conscientious Entrepreneurs is an official list of companies and businesspeople recognized by the state as reliable, honest, and socially responsible. In other words, it is a kind of ‘white list’ of businesses operating transparently and lawfully,” the ministry stated. Officials explained that the register is designed to support ethical entrepreneurship, strengthen reputations, and increase trust from clients, partners, and the state. Inclusion is expected to encourage lawful conduct and promote contributions to Kyrgyzstan’s economic development. Businesses listed in the register will be eligible for several benefits, including free advertising airtime on state television channels, priority service at tax authorities, and free participation in international exhibitions and trade fairs. Notably, they will also be exempt from inspections by supervisory bodies for a period of three years, except for certain audits conducted by the State Tax Service. Additional incentives include access to preferential financing through state-backed lending programs, the right to display a government-issued quality mark, and official confirmation of reliability. To qualify for the register, businesses must meet several criteria: Operate for at least three years; Pay taxes and insurance contributions fully and on time; Have no debts to the state; Provide decent wages to employees (no lower than the sector average); Demonstrate annual growth of at least 5% in taxes and budget contributions; Comply with labor rights regulations; Have no convictions for economic crimes. An interdepartmental commission met earlier this week to evaluate applications. Of the 48 businesses that applied, only a few were denied entry into the register.

Business

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...