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Will Kyrgyzstan be able to become a “window” for investors to the markets of the EAEU, China and the EU?



Kyrgyzstan has many advantages that may be of interest to foreign investors. In particular, there is the possibility of entering other markets through our country.

At a recent forum in Urumqi within the framework of the EXPO “China – Eurasia: Goods and Trade – 2023”, Chairman of the Cabinet of Ministers Akylbek Japarov made an interesting statement: “Kyrgyzstan, having great investment potential, can and is ready to act as a “window” for foreign investors to enter the markets countries of the EAEU, the European Union, China.”Sputnik asked experts what exactly the Kyrgyz Republic can offer investors and what role it can play in attracting foreign business to the Eurasian Economic Union.

Arguments of Akylbek Japarov

The head of the Cabinet of Ministers recalled that Kyrgyzstan has GSP+ status, thanks to which exporters will be able to supply more than 6,200 types of goods to EU countries at zero tariff rates. In addition, the republic is included in the new Developing Countries Trade Scheme (DCTS – British program), which will make it possible to take advantage of preferential tariffs on approximately 8 thousand commodity items.

Board of the Ministry of Labor, Social Development and Migration based on the results of the first half of the year - Sputnik Kyrgyzstan, 1920, 09/26/2023

Head of the Cabinet Akylbek Japarov© Photo / press service of the Cabinet of Ministers of the Kyrgyz RepublicJaparov emphasized that the world economic center of gravity is shifting to the southeast and the role of Central Asia in the global market will only increase.

Why is this beneficial for investors?

Deputy Minister of Economy and Commerce of the Kyrgyz Republic Ainura Usenbekova notes that the main factor for any investor is the presence of a fairly favorable investment climate (legislative framework, developed payment system, trade and logistics infrastructure, personnel, and so on). Therefore, work was carried out in the country to create a favorable environment. In particular, the following benefits are provided:preferences for investors, including those related to tax benefits, provision of land plots in a simplified manner (depending on the status of the project and the volume of investments);a moratorium on inspections, which makes it possible not to waste time on administrative procedures, but to engage in project implementation;When purchasing, government agencies are obliged to give preference to domestic manufacturers and only in their absence to look for external suppliers;liberal legislation (in comparison with other Central Asian countries);free economy;a sufficiently developed financial market, payment transactions can be carried out without restrictions;Every year about 100 thousand people enter the labor market in Kyrgyzstan;a fairly developed trade and logistics network, the republic is located in the transit zone;The China-Kyrgyzstan-Uzbekistan railway will have enormous potential, thanks to which the Kyrgyz Republic can become a “window to Europe”;Seven transport land corridors pass through Kyrgyzstan.

Deputy Minister of Economy and Commerce of the Kyrgyz Republic Ainura Usenbekova - Sputnik Kyrgyzstan, 1920, 09/26/2023

Deputy Minister of Economy and Commerce of the Kyrgyz Republic Ainura Usenbekova© 

Sputnik / Zhoomart Uraimov“We are a full member of the EAEU, and the main principle of the union is the free movement of goods, services and financial resources. There are no internal restrictions. Taking into account the conditions that have been created in our country, it is very easy to enter Kyrgyzstan and gain access to the entire EAEU market “I think this is one of the main advantages,” says Ainura Usenbekova.

Can the Kyrgyz Republic really become a “window” for investors?

Regional integration expert Denis Berdakov answers this question in the affirmative. According to him, Russian investors have been actively coming to Kyrgyzstan for the last 3-4 years. They are interested not only in the country’s market, but also in the possibility of entering other Central Asian states, China, and so on.

Director of the Elchi Center for Social and Political Research, political scientist Denis Berdakov - Sputnik Kyrgyzstan, 1920, 09/26/2023

Regional integration expert Denis Berdakov© 

Sputnik / Zhoomart Uraimov“We see dozens of companies from Russia, we see serious investments. In fact, Kyrgyzstan has become for the Russian Federation one of the key points for receiving non-sanctioned imports: clothing, food, household appliances,” Berdakov explained.

Chinese investors are no less actively coming to us, who are interested not only in the small Central Asian market, but also in the entire EAEU. For example, it recently became known that a company from China wants to open 

the production of electric vehicles here .According to Berdakov, Kyrgyzstan serves as a transshipment base for China and Russia, and historically. Firstly, we have multilingualism. Secondly, the republic has developed the technology of complex logistics: for example, when receiving clothes (and raw materials) from China, domestic garment workers “modify” them to Russian standards and tastes. As a result, a huge part of the Russian market is occupied by light industry products from Kyrgyzstan.The political scientist notes that Central Asia is of interest to the European Union because cooperation is developing in the region: supplies of Russian gas have begun and there is relatively cheap labor. For example, more than a dozen concerns from Germany, France, and Italy enter Uzbekistan.“Central Asia has in many ways become a convenient region through which Russia (import and export), China and Europe (export) operate. That is, in this regard, our region benefits on many counts,” Berdakov believes.

Will the “window” expand?

The expert is confident that if socio-economic stability and guaranteed investment protection are maintained in Kyrgyzstan, more investments will be made in the country. According to his estimates, in the next 7-10 years, multi-billion dollar investments may come from Russia and China. Recently, agreements were signed with Chinese companies for huge sums, in particular 

a memorandum on the construction of a cascade of hydroelectric power stations and an investment document on the construction of 

a solar power plant with a capacity of 1 gigawatt.As Berdakov said, according to various estimates, in the next 7-10 years, the republic’s GDP may grow by at least 10 percent per year.

Source : Sputnik

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