kyrgyzstan business outreach forum athens, april 2-3, 2009

KyrgyzstanKyrgyzstan

Business Outreach ForumBusiness Outreach ForumAthens, April 2-3, 2009Athens, April 2-3, 2009

Kyrgyz RepublicKyrgyz Republic KyrgyzstanKyrgyzstan is situated in the north-eastern part of Central Asia. It borders with Uzbekistan in the west, Kazakhstan in the north, with Tajikistan in the south and with China in the east.

Capital Bishkek Population 5.2 mln. Total area 199.900 km2 Climate Arid,

continental GDP € 4.07 billion External Trade € 4.14 billion HD Index 0.696 (116

rank)

Investment ClimateInvestment Climate Liberal investments regimeMember of WTO and EurAsECLow custom tariffs “One stop Shop” principle to be introduced in external trade starting 2010 Favorable tax regime (profit tax -10%, VAT -12%, import of equipment is VAT free) Inexpensive laborHigh literacy rate - 99.9%

Investment ClimateInvestment Climate Investment guarantees

Equal investments rights of domestic and foreign investors

• Export or repatriation of profit gained on investment

• Protection against expropriation

• Protection and restitution of infringed rights of investors

Investment ClimateInvestment Climate

Index 2008 2009

Doing Business 99 68

Change +31

Poverty LevelPoverty Level

• 35%• Urban: 23,2% • Rural: 41,7%• Regional disparities• Poverty has rural

phenomena • 1,829 mln. population

live below poverty, 75,9 % of which are rural residents

Share of main sectors in GDPShare of main sectors in GDP (%)(%)

Share of main sectors in Share of main sectors in employmentemployment (%) (%)

35

18

31

24

20

37

50

37

3330

28

32 32

43

50

0

10

20

30

40

50

60

1991 1996 2001 2004 2007

Industry Agriculture Services

27

17

10

1821

36

47

53

3936

3836 36

44 43

0

10

20

30

40

50

60

1991 1996 2001 2004 2007

Industry Agriculture Services

Poverty level and employment by Poverty level and employment by sectorssectors

Poverty Level, % Employment %

Sector Total Urban Rural Total Urban Rural

Total 35 23.2 41.7 100 35 65

Agriculture 54 26 56 40 2 38

Industry 34 27 43 17 9 8

Market services 33 25 43 24 14 10

Public services 34 24 44 19 9 10

Country Priority Country Priority SectorsSectors

• Mining• Tourism• Agriculture• Transport and

communications• Energy supply

Opportunities for pro-poor Opportunities for pro-poor investmentsinvestments

Agriculture

Share in GDP - 31% Infrastructure:

– 71163 private farms– 273 collective farms– 281 associations

Sector priorities:

– Seed-farming– Selective breeding– Farming equipment

Agricultural ProcessingAgricultural Processing

• Inexpensive raw material of high quality

• New opportunities for development of high quality products – cheese and other diary products, jams, dry tomatoes, pastes, nuts, green herbs, honey

• Share in GDP - 2,9% • 480 enterprises engage 24

100 employees

Opportunities for pro-poor Opportunities for pro-poor investmentsinvestments

Eco-tourism

Kyrgyzstan is a mountainous country famous for its natural heritage including its high peaks, glaciers, lakes, snow leopards and other attractions.

• Share in GDP-4,1%

• Volume of services in 2008 – € 398.19 mln– Trekking– Horse riding– Mountain biking– Rafting– Skiing

Opportunities for pro-poor Opportunities for pro-poor investmentsinvestments

Alternative renewable sources of energy, including Micro-Hydro Power stations (MHP)

• Share - 0,17% of total power balance

• High potential for renewable energy supply – 850 mln. tons of standard coal– Solar– Manure gas– Wind– Micro-Hydro Power stationsMHP– Total waterpower potential of 172 rivers and

streams acceptable for development - 5-8 billion. Kwh per year

– Potential for constructing 92 new stations

– Rehabilitation of 39 existing stations

Contact informationContact information

UNDPNuria Choibaeva, UNDP Poverty Reduction Programme Managernc@prp.undp.kg

Government

Investment Council under the President of the Kyrgyz Republicwww.investmentcouncil.kg

Thank you!Thank you!