The head of the Federal Department of Economic Affairs, Education and Research (EAER) will meet most probably with members of government including the president of Azerbaijan and the prime ministers of Kazakhstan, Uzbekistan and the Kyrgyz Republic, as well as ministers of economic affairs, investment, finance and trade, and local authority representatives. Meetings are also scheduled to take place with associations and representatives from the private sector and with the local Swiss business community including round tables and economic forums in various capital cities. Two declarations of intent with Kazakhstan on the future conclusion of two agreements, one on the recognition of precious metal hallmarking, and a second on the field of services (domestic regulation in trade in services) are expected to be signed.

The Swiss delegation will visit several economic zones offering facilities to foreign companies with the aim of attracting investment. The projects pursued in the context of the Belt and Road Initiative are aimed at developing transport and energy infrastructure, offering interesting opportunities to Swiss industry, such as in the field of rail transport. In Kazakhstan, the delegation will stop in Aktau, a town on the shores of the Caspian Sea destined to become a key point on the east-west transport routes of the Belt and Road Initiative. There the delegation will visit the port facilities and special economic zone. In Astana, the governor of the new international financial centre (AIFC) will give a presentation on the future role that Kazakhstan intends to play in the region’s financial sector.

Mr Schneider-Ammann’s presence in the region will be used as an opportunity to inaugurate new Swiss investment projects in the chemical industry in Azerbaijan and in the textile industry in Uzbekistan.

The mission will also allow the head of the EAER to see a selection of Swiss development cooperation projects at first hand, particularly in Uzbekistan and the Kyrgyz Republic. The projects cover different fields (support for the financial sector, trade promotion, infrastructure financing, particularly water supply in collaboration with the World Bank, and vocational education). In Bishkek, there will be an opportunity to meet with Swiss cooperation partners.

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In the context of China’s Belt and Road Initiative, aimed at developing the old Silk Road along land-based and maritime corridors, Azerbaijan and Central Asia are gaining in importance and enjoying increased interest among economic actors. The region, which is rich in natural resources, is pursuing important economic development projects, particularly in terms of infrastructure, necessitating cooperation with foreign partners. Ambitious reform programmes have been put in place with a view to diversifying and liberalising the economy. At the end of 2017, Uzbekistan introduced a key measure by liberalising its foreign exchange policy.

Since the countries of Central Asia gained independence at the beginning of the 1990s, Switzerland has maintained close ties due to their membership of the same constituency in the Bretton Woods international financial institutions, an important aspect of these relations. One of the aims of Federal Councillor Johann N. Schneider-Ammann’s visit is to facilitate private sector access to these markets, which remains difficult despite various reforms, and to encourage synergies between Switzerland’s various areas of intervention in Central Asia.

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Economic exchanges with the countries visited are not yet well developed, even though certain figures, particularly on imports, are high due to trade in precious metals (Uzbekistan, Kyrgyz Republic) and petroleum products (Kazakhstan). Kazakhstan is Switzerland’s main market in the region followed by Uzbekistan. Despite the presence of a number of businesses, Swiss investment, on which the SNB does not publish data, is still relatively modest, except for Kazakhstan. Investment on the part of these countries in Switzerland is very modest, with the exception of Azerbaijan which occupies first place following the acquisition of the Swiss subsidiary of ExxonMobil by the national oil company Socar in 2012.

Address for enquiries

Irène Harnischberg,
Spokeperson EAER
058 462 20 34,
irene.harnischberg@gs-wbf.admin.ch

Publisher

Federal Department of Economic Affairs, Education and Research
http://www.wbf.admin.ch

The purpose of the visit to Kyrgyzstan was to identify business opportunities for Swiss firms, to foster relations with Kyrgyzstan as a member of the same voting groups in the World Bank and the IMF, and to see whether the support provided under Switzerland’s development cooperation program is relevant and effective.

Over the years, Switzerland has provided around CHF 370 million in grants to support the transition of the Kyrgyz Republic to a functioning democratic system and a sustainable market economy. The “Swiss Cooperation Strategy for Central Asia 2017-2021” foresees a total budget of about CHF 100 million for Kyrgyzstan for five years. Support to the Kyrgyz government in improving the business climate and to the Kyrgyz private sector to develop and create jobs is an important endeavour of the Swiss cooperation program in Kyrgyzstan.

During his visit, Minister Johann N. Schneider-Ammann met with the Prime Minister of the Kyrgyz Republic - Mr. Muhammedkalyi Abylgaziev, the Minister of Finance – Mr. Adylbek Kasymaliev, and with the Deputy Minister of Economy – Mr. Eldar Abakirov.

During its stay in Bishkek, the Swiss delegation met with representatives of the Kyrgyz private sector, as well as the Swiss business community in Kyrgyzstan. The Swiss Minister visited a local company that benefited from the support of the Swiss Cooperation under the Small Business Initiative Program. This program helps small and medium-sized enterprises to get access to financial and advisory services, which will improve their performance and enable them to grow further and create jobs.

Swiss and Kyrgyz representatives had constructive discussions on topics of mutual interest, in particular on the opportunities and challenges for the Kyrgyz economy in the context of regional initiatives like the Eurasian Economic Union and the Belt and Road Initiative. Swiss foreign direct investments – mainly in tourism, dairy and services – so far remain modest, but members of the delegation noted that they could increase provided international quality and sanitary standards and other issues could be addressed. In this regard, Minister Schneider-Ammann stressed that Switzerland stands ready to provide support to Kyrgyzstan in strengthening its national quality system and in enhancing trade facilitation.

Before coming to Kyrgyzstan, the Swiss delegation visited Azerbaijan, Kazakhstan, and Uzbekistan.