This is a best prospect industry sector for this country. Includes a market overview and trade data.
The Kyrgyz Republic’s emerging ICT sector is poised to be a major economic driver to power modernization and regional development, offering significant investment and trade opportunities in the “Virtual Silk Road”. While the country has lagged behind its regional neighbors in ICT access and digital infrastructure development, the IT sector is one of the fastest growing industries in the Kyrgyz Republic. In the last six years, the Kyrgyz Republic has risen in the rankings of the Global Innovation Index from 117th (2013) to 90th (2019) among 129 countries, outperforming Uzbekistan, Tajikistan, and Turkmenistan in innovation digital adoption activities. In 2019, the Kyrgyz government adopted the “Digital Kyrgyzstan 2019-2023” strategy aimed at the following targets:
- Improving digital infrastructure and internet connectivity
- Ensuring “digital literacy” and providing IT education to promote domestic employment opportunities
- Developing e-government services and platforms
- Promoting economic growth through the digital transformation of the financial technology and banking sectors
IT Software and Services
Since its inception ten years ago, the Kyrgyz IT landscape has enjoyed constant, positive growth, making it one of the most profitable and self-reliant sectors in the Kyrgyz economy. In 2011, the Kyrgyz government, in collaboration with the Kyrgyz Software and Service Developers Association (KSSDA), launched the High-Technology Park of the Kyrgyz Republic (HTP). Modelled after the High Technology Park in Belarus, HTP is a tax-free economic zone oriented towards promoting exported IT services and products to overseas clients. By the end of 2019, HTP expanded to 80 resident companies that generated $14 million in annual total revenue, a 65% increase from 2018. Nearly 30% of software and other IT exports go to the United States, while the remainder reach over 30 other markets including Japan, Canada, Ukraine, Kazakhstan, India, and Germany. HTP residents specialize in software and mobile application development, gaming and interactive technical service centers. By 2024, HTP is anticipated to generate $200 million in annual aggregate revenue and up to 10,000 domestic IT-related jobs. Despite the dynamic development of the Kyrgyz IT sector, a key barrier to the expansion of the IT sector is the lack of trained IT specialist and attrition of talented Kyrgyz developers to overseas employers.
Under the digital transformation roadmap, the Kyrgyz government is targeting ICT modernization of customs and logistics centers, healthcare service centers, educational institutions, and transport hubs. Prospects for U.S. exporters include: broadband internet access technologies, consumer electronics, educational software, fintech and banking services and hardware, analytical software, ICT equipment, cyber security solutions, and legal and financial services. Limited available financing remains a constraint for the government, which relies heavily on international donor assistance to fund major ICT projects. The country is also an emerging outsource market for international tech startups and companies seeking business process services, due to its zero percent tax regime, low overhead costs, and skilled local IT workforce.
Upcoming Trade Events
CONNECT.KG Virtual IT Expo
March 15-19, 2021 (Bishkek)
High-Technology Park of the Kyrgyz Republic
265A Chui Ave
Bishkek 750020, Kyrgyz Republic
Phone: +996 555 221 146