LocationsUNDP supports E-commerce growth in Kyrgyzstan
November 19, 2024
In recognition of digital transformation’s vital role in economic growth, UNDP is actively supporting Kyrgyzstan’s digital advancement initiatives. Through projects that strengthen digital infrastructure, digitize the public services, improve technology access, and develop digital skills among entrepreneurs, UNDP supports the development of an innovative landscape. This approach enables local businesses to expand into domestic and international markets, enhancing Kyrgyzstan’s economic resilience. UNDP’s work directly contributes to sustainable growth pathways, bolstering entrepreneurship and unlocking export potential across the region.
“Promoting e-commerce is integral to UNDP’s mission of accelerating sustainable economic growth in Kyrgyzstan”
Establishing an E-commerce Park in Kyrgyzstan
Since 2019, e-commerce in Kyrgyzstan has experienced rapid growth, driven by improved internet infrastructure and rising mobile payment usage. However, challenges persist, such as limited consumer trust in online shopping and restricted internet access in rural areas, where 60% of the population resides. Addressing this, the Kyrgyz government launched the E-Commerce Development Programme for 2023–2026, focusing on strengthening the competitiveness of local products and attracting investment.
In collaboration with the Ministry of Economy and Commerce of Kyrgyzstan, UNDP is developing a regulatory framework to establish an E-commerce Park. This initiative aims to create a favorable environment for e-commerce enterprises, attracting investment and nurturing an ecosystem for digital commerce and seeks to transform Kyrgyzstan into a logistics and digital trade hub, fostering an environment where entrepreneurs thrive. Kyrgyzstan’s e-commerce sector is projected to grow from USD 360 million in 2024 to USD 595.7 million by 2028, with a significant increase in tax revenue anticipated by 2025.
"The establishment of the E-commerce Park marks a step toward positioning Kyrgyzstan as a digital trade hub for the region,"
Leveraging Kyrgyzstan’s strategic position, the E-commerce Park is set to boost trade across China, Russia, Kazakhstan, South Asia, and the Middle East, enhancing national development and digital transformation. The E-Commerce Park also provides critical resources and infrastructure for MSMEs, supporting their innovation and digital growth.
According to Aibek Kurenkeev, President of the E-Commerce Association, E-Commerce Park will not only accelerate innovation but also provide critical resources and infrastructure that small and medium-sized enterprises need to thrive in the digital marketplace.
"This initiative represents a significant opportunity for growth and development in this sector.”
Central Asian E-commerce Expo 2024
In October, UNDP supported the Central Asian E-commerce Expo, drawing over 600 participants, including more than 50 persons with disabilities, emphasizing UNDP’s commitment to an inclusive digital economy. The event facilitated the signing of a memorandum of cooperation among Central Asian business associations, symbolizing a united effort to enhance cross-border e-commerce.
Key discussions at the forum highlighted the need to refine regulatory frameworks, support small businesses, and implement tax regimes suited to digital transactions. Panel discussions and expert presentations offered insights into fintech, logistics, and digital platforms, enhancing inter-country knowledge exchange and strengthening regional ties.
Empowering MSMEs in Kyrgyzstan through E-commerce
UNDP’s E-commerce incubation programme aims to train more than 50 micro, small, and medium enterprises (MSMEs) in digital marketing and online sales, enhancing their competitiveness within the global digital economy. UNDP through the "Aid for Trade in Central Asia" project, funded by the Government of Finland, is working to enhance the trade capabilities of MSMEs and improve local product competitiveness in international markets.
"With the training and mentorship provided by UNDP, I have established an online store and expanded my product range," shares program participant Nargiza Turbatova.
"The program has helped me integrate digital marketing strategies and connect with artisans across the country."
Through these strategic initiatives, UNDP remains committed to driving digital transformation and sustainable economic growth in Kyrgyzstan, building a resilient future through digital tools and platforms.
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About the project
UNDP is implementing the fifth phase of the regional project "Aid for Trade in Central Asia," funded by the Government of Finland. The project aims to support Central Asian countries in achieving inclusive and sustainable growth by promoting "green" value chains and enhancing the competitiveness of their economies. It contributes to creating more resilient, secure, and gender-sensitive economic structures by diversifying the economy and adapting to new market and consumer trends. The E-commerce expansion initiatives are carried out as part of this project in partnership with the John Galt business accelerator.
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