19 August 2024

Investment Opportunities in Kyrgyzstan - Kyrgyz-German Business Forum 2024

On 20 June 2024, the first Kyrgyz-German Business Forum took place in Frankfurt/Main. Organised by the Embassy of the Republic of Kyrgyzstan, the Ost-Ausschuss and AKA Ausfuhrkredit-Gesellschaft, the event attracted a large delegation from the Kyrgyz Republic, including government representatives, banks and business delegates, as well as key players from the German export and banking industry. The forum focused on key aspects such as financing, raw materials, logistics and energy.

The Forum was opened by a welcome address from Adylbek Kasymaliev, First Deputy Prime Minister of the Kyrgyz Republic. Prime Minister Akylbek Japarov also addressed the participants with a video message from Bishkek. Both emphasised the importance of the Forum in promoting investment and financing opportunities and underlined the goal of intensifying economic activities between Kyrgyzstan and Germany. Mr Kasymaliev also stressed the importance of international partnerships. Kyrgyzstan, the first of the former Soviet states to join the WTO, has concluded a number of free trade agreements in recent years, allowing foreign investors easy access to regional markets.

The first panel of the Forum highlighted the importance of export finance for Kyrgyzstan's economic development. The Kyrgyz banking sector, although small, is seeking closer links with international financial institutions and is working to implement ESG principles. The low cost of electricity in Kyrgyzstan is a significant advantage for investors. German financial institutions such as LBBW and ODDO BHF have expressed interest in increasing their involvement in Kyrgyzstan, including financing projects. One example of Kyrgyzstan's commitment to environmental responsibility and sustainable development is the hydropower plant at the upper Naryn Cascade. This hydropower plant will not only contribute to the energy supply, but also to the economic development of the region. When planning such large infrastructure projects, Kyrgyzstan carries out comprehensive environmental and social impact assessments to reduce negative impacts on people and the environment and to take preventive measures.

The second round of discussions focused on investment opportunities in commodities, logistics and energy. Hydropower in particular has great potential. This is evidenced by the interest shown by companies such as Andritz Hydro and Voith Hydro to expand their activities in the region. The Rhenus Group is planning to invest in logistics along the new China-Kyrgyzstan-Uzbekistan railway line, while German agricultural machinery manufacturers such as Grimme and Amazone are calling for faster customs clearance to bring organic products from Kyrgyzstan to the European market.

Kyrgyzstan's digital transformation is primarily dedicated to optimising and establishing the electronic interface between government agencies and the private sector. The government is focusing on greater transparency, constant availability, encrypted data, technological innovation and versatility. Since 2018, the Kyrgyz Republic has been implementing its digitalisation plans with 'TUNDUK', a system for inter-institutional electronic interaction. This system enables the exchange of data, the traceability of goods and services, and the removal of bureaucratic hurdles. A key aspect is also the improvement of the G2C (government to citizen) sector. The platform is designed to help citizens and businesses use government services more efficiently. Particular attention is being paid to better integrating banks and other private institutions into government systems. Projects already implemented include electronic trading systems, public procurement portals, electronic document management systems, the electronic criminal register and the e-visa system. Despite this progress, a number of challenges remain, such as improving the digital infrastructure and the digital literacy of the population.

The event concluded with a get-together where participants continued to network through personal dialogue.

We would like to thank all participants, panelists and sponsors:

LBBW

ODDO BHF

IHK Frankfurt am Main

Heidelberg Materials

Lernidee Erlebnisreisen GmbH