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Finance Banking Strategy Digitalization National Bank Digitization

Kazakhstan Prepares to Introduce Digital Currency

At this week's Central Asia Fintech Summit in Almaty, the Digital National Bank of Kazakhstan presented its vision for a digital version of the country's currency, the tenge. The digital tenge is an electronic version of Kazakhstan's national currency issued by the National Bank. It is designed to complement cash and non-cash forms of money by making financial services available in digital format. Digital tenge can be used for instant payments and transfers, settlements between individuals and businesses, and payment for goods and services through mobile banking applications. This currency is particularly useful in e-commerce, government services, financial technologies, and cashless settlements. It also supports the development of smart contracts, allowing for the automation of financial transactions. The introduction of the digital tenge promotes transparency in financial transactions and improves access to financial services in remote and rural areas. Advisor to the Chairman of the National Bank, Binur Zhalenov, said that the project is planned to be completed within five years. Some components, such as the digital tenge and a single QR in pilot mode, are already being implemented. Full implementation of the digital tenge, including the connection of all second-tier banks, is expected by 2025. Zhalenov noted that the platform is ready and operates based on the National Payment Corporation. In the coming years, it is planned to actively connect financial organizations and expand the digital tenge's capabilities. Last year, Zhalenov explained that using the digital tenge will require an existing banking app for one of the project participants. Thus, users will be able to link a digital tenge account to their current payment card without the need to install additional programs.

Strategy Renewable Energy Generation HPP Energy Infrastructure Energy Security

Kyrgyzstan Begins Construction of Another Small Hydropower Plant

The construction of a small hydroelectric power plant on the Ak-Buura River at the Papan reservoir in Kyrgyzstan’s southern Osh region has begun. The Ak-Buura River supplies water to Kyrgyzstan’s second-largest city, Osh. The Papan reservoir is located in the Papan Gorge, and the power plant will be constructed in the narrowest part of the Ak-Buura River valley. The small hydropower plant will have a capacity of 25 MW and will generate 103 million kWh of electricity per year. The project costs $27 million. "The construction of a small hydroelectric power plant at the Papan reservoir is another strategic step towards the country’s energy independence," Chairman of Kyrgyzstan’s Cabinet of Ministers Akylbek Japarov stated at the ceremony to launch the construction on October 5. In recent years, Kyrgyzstan has been working to expand its energy capacity by building small and large hydroelectric plants to address electricity shortages. Earlier this year, Kyrgyzstan constructed small hydroelectric power plants in Bala-Saruu in the northwestern Talas region and Kok-Art and Kainama small hydropower plants in the southern Jalal-Abad region. In 2023, Kyrgyzstan met 80% of its electricity demand, which totaled 17.2 billion kilowatt-hours. The remaining 20%, or 3.4 billion kilowatt-hours, was imported. Energy Minister Taalaibek Ibraev last week stated that despite an increase in water levels at Kyrgyzstan’s largest Toktogul hydroelectric power plant (HPP) reservoir this year, the country would still be facing an electricity deficit of about 3.9 billion kilowatt-hours. The positive is that Ibraev said in parliament on October 4 that there will be no scheduled blackouts this winter, as his ministry has done a good job preparing the power distribution system for the coming winter. The Energy Ministry has installed new and repaired all the existing transformers nationwide. In previous years, Kyrgyzstan practiced scheduled restrictions on electricity supply for several hours a day to save electricity during peak consumption hours in winter. The minister also announced that starting January 1, 2025, Turkmenistan will supply Kyrgyzstan with 1.7 billion kilowatt-hours of electricity.

Energy Strategy Industry Coal Energy Security

Kyrgyzstan Plans to Stop Importing Coal and Electricity by 2027

Kyrgyzstan plans to abandon coal imports within the next two years and stop buying foreign electricity by 2027. Speaking at a parliamentary group meeting, Energy Minister Taalaibek Ibraev announced that the country is already preparing to meet these challenges by actively developing the energy sector's infrastructure. Ibraev emphasized that the problem with transformers, which was relevant earlier, will be solved next year. Repairs have already been carried out in all 56 RECs (district electric networks), and five spare transformers have been provided for each of them in case of emergencies. A tender has also been held for purchasing one thousand transformers worth $58 million, of which $25 million are loan funds, $25 million is a World Bank grant, and $8 million is a Swiss grant. In addition, 600 thousand new meters are planned to be purchased. These measures will significantly improve the reliability of the country's electricity supply. The minister also noted that the country's generating capacity deficit is 300 to 400 megawatts. To solve this problem, solar power plants will be launched, allowing the country to scale down electricity imports. In addition, Ibraev announced plans to refuse coal imports in the next two years. The country is developing projects to introduce alternative energy sources and ensure energy independence. Problems with transformers in Kyrgyzstan have been acute over the past few years due to worn-out energy infrastructure and equipment shortages. Many transformer stations needed modernization, resulting in power supply failures. The government initiated large-scale transformer replacement and repair projects in response to these challenges.

Energy Security Nuclear Referendum NPP Strategy Atomic Energy Referendum public opinion Nuclear Energy

Kazakhstan Awaits Results of Nuclear Referendum; Exit Polls Indicate a “Yes” Vote

Kazakhstan is awaiting the official results of a referendum on whether to build its first nuclear power plant, though exit polls showed “yes” voters were in the majority, according to state-run media reports. The project could ease chronic energy shortages and reduce reliance on coal-fired facilities but is fraught with concerns about costs, transparency, and the legacy of the human and environmental cost of Soviet nuclear weapons testing decades ago. Led by President Kassym-Jomart Tokayev, Kazakhstan’s political establishment has backed the idea of peaceful nuclear power as a way to move the country forward and the referendum appears aimed partly at giving people a sense of agency after the trauma of Soviet testing at Semipalatinsk. But some opponents allege that authorities restricted their efforts to organize a “no” campaign with detentions and other pressure designed to lock in an expected vote in favor. Officials results had not been announced as of early Monday morning. Voting at polling stations in Kazakhstan ended at 8 p.m. on Sunday and turnout among eligible voters was 63.87%, according to the Central Election Commission. The highest turnout was in the Kyzylorda region (82.48%) and the lowest turnout was in the city of Almaty (25.39%). Turnout in Astana, Kazakhstan’s capital, was 50.81%. “The precinct referendum commissions have begun counting the votes. The counting process at each polling station must not exceed twelve hours from the start of the count,” the commission said. Additionally, more than 7,358 Kazakh citizens voted at polling stations abroad, including in Asia, South America, Europe, and the United States, according to Roman Vassilenko, Kazakhstan’s Deputy Minister of Foreign Affairs. He noted at a briefing on Sunday night that the referendum had been monitored by observers from regional organizations, including the Shanghai Cooperation Organization, the Organization of Turkic States, and the Astana-based Conference on Interaction and Confidence-Building Measures in Asia. The heads of the observer missions said the referendum was “open, free, and legitimate, with no violations detected at any polling stations,” Vassilenko said. Kazakhstan also invited observers from the Organization for Security and Cooperation in Europe, but the OSCE declined to send a delegation “due to heavy workload,” reported the state-run Kazinform news agency. The OSCE sent a mission to observe a 2022 referendum on constitutional changes in Kazakhstan and concluded that it took place “in an environment short of genuine political pluralism.” One critic of the rules surrounding the nuclear referendum is Tamara Yeslyamova, editor-in-chief of the Uralskaya Nedelya, a newspaper that has sparred with the government over the years. A judge issued her with a fine for 110,760 tenge ($230) after she conducted video interviews about the referendum on nuclear power with half a dozen people on the street, the newspaper reported. It said the judge concluded that the interviews amounted to a public opinion survey; the law says such a poll can only be done by a state-sanctioned entity.

Transport and Logistics South Korea Strategy Transport Transport cooperation Trade and Logistics Dry Port

South Korea to Help Build Dry Ports in Uzbekistan’s Syrdarya and Jizzakh Regions

The Ministry of Transport of Uzbekistan announced on October 2 that it had signed a Framework Agreement with the Port Investment Department of the Ministry of Oceans and Fisheries of South Korea to jointly develop a feasibility study for the construction of dry ports and terminals in Uzbekistan’s Syrdarya and Jizzakh regions. According to the Uzbek ministry, the project will help improve the country's transport and logistics infrastructure. Creating inland terminals will be an important step towards increasing Uzbekistan's logistics independence and strengthening its role as the main logistics hub in Central Asia. The project is expected to significantly improve the country’s transport infrastructure and attract new investments to the Syrdarya and Jizzakh regions, supporting the goals of the "Development Strategy of New Uzbekistan for 2022-2026." The project is scheduled for completion in September 2025. As one of only two double-landlocked countries in the world (the other being Liechtenstein), Uzbekistan has to ship its exports over long distances through other landlocked countries — Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Afghanistan. In recent years, the government of Uzbekistan has made substantial progress in improving existing international transport corridors running through the country and in developing new corridors that will allow Uzbekistan to access the markets of the Eurasian Economic Union and European countries, Iran, Turkey, Afghanistan, Pakistan, India, and China.

Strategy Legislation Poverty Social protection reduce poverty

Pathway to Prosperity: Uzbekistan’s Ambitious Plan to Halve Poverty by 2030

A presidential decree, "On taking measures to reduce poverty and increase the population's well-being to a new level," has been adopted in Uzbekistan. Lifting half a million people out of poverty in the remainder of 2024 and a further million in 2025 was defined as the primary task of the state's socioeconomic policy and state bodies and organizations at all levels. The “From Poverty to Prosperity” program will be implemented based on the positive results of poverty reduction from past national experiences and international practices. The program will be implemented from November 1, 2024, based on the doctrine of “Seven Opportunities and Responsibilities for Poor Families.” Within the framework of this program, systematic work is carried out to achieve stable employment and higher incomes, education and vocational training, access to the use guaranteed state medical services, social services, and an overall improvement in living conditions. The “Uzbekistan – 2030” strategy also includes steps to reduce poverty in the country. It was stated that the Ministry of Poverty Reduction and Employment in Uzbekistan will work with Chinese experts and international organizations to develop a strategy for reducing poverty from 2024 to 2030. This will aim to halve poverty by 2026, raise the income of 4.5 million people at risk of falling into poverty by 2030, and lift three million young people out of poverty by utilizing their labor skills. According to data, at the end of 2020, approximately six million people in Uzbekistan lived below the poverty line. While evaluating the results of the transformation programs aimed at solving the problems of poverty, it was noted that in 2023, the poverty rate in Uzbekistan decreased from 17% to 11%, meaning such programs have already helped lift almost two million people out of poverty. It is planned that the poverty level in Uzbekistan will be reduced to 7% in the next three years. This work to reduce poverty has been lauded at the international level. Dr. Ambar Narayan, Manager of the Global Poverty and Equality practice of the World Bank in Europe and Central Asia, for example, has recognized that large-scale work on poverty reduction has been carried out in Uzbekistan since 2020. Naravan believes that prioritizing investment in economic mobility and developing opportunities for vulnerable sections of the population, including youth, women, and inexperienced workers, will help create more productive jobs and reduce hardship. Geoffrey Ijumba, acting head of the UNICEF office in Uzbekistan, has also praised Uzbekistan’s efforts to develop a nationwide action plan to end child poverty. “Prioritizing the problem of child poverty, as well as the development of appropriate measures and programs, will allow Uzbekistan to achieve its goals of reducing poverty, as stated in the ‘Uzbekistan – 2030’ strategy. It will also help achieve the MDG (Millennium Development Goal) targets of ending child extreme poverty and halving it according to the national definition,” Ijumba stated. Global Finance published a list of the poorest countries in the world in 2024 based on the International Monetary Fund's data. Kazakhstan...