Kyrgyzstan Business Outreach Forum Athens, April 2-3, 2009

Kyrgyz Republic Kyrgyzstan Kyrgyzstan 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.  CapitalBishkek  Population5.2 mln.  Total area km2  ClimateA rid, continental  GDP€ 4.07 billion  External Trade€ 4.14 billion  HD Index0.696 (116 rank)

Investment Climate Liberal investments regime Member of WTO and EurAsEC Low 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 labor High literacy rate %

Investment 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 Climate Index Doing Business Change +31

Poverty 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 GDP (%) Share of main sectors in employment (%)

Poverty level and employment by sectors Poverty Level, %Employment % SectorTotalUrbanRuralTotalUrbanRural Total Agriculture Industry Market services Public services

Country Priority Sectors Mining Tourism Agriculture Transport and communications Energy supply

Opportunities for pro-poor investments Agriculture Share in GDP - 31% Infrastructure: – private farms – 273 collective farms – 281 associations Sector priorities: – Seed-farming – Selective breeding – Farming equipment

Agricultural 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 employees

Opportunities for pro-poor investments 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 – € mln – Trekking – Horse riding – Mountain biking – Rafting – Skiing

Opportunities for pro-poor investments 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 stations MHP –Total waterpower potential of 172 rivers and streams acceptable for development billion. Kwh per year – Potential for constructing 92 new stations – Rehabilitation of 39 existing stations

Contact information UNDP Nuria Choibaeva, UNDP Poverty Reduction Programme Manager Government Investment Council under the President of the Kyrgyz Republic

Thank you!