Green Economy and Sustainable Private Sector Development

Project supports transition towards green economy, in particular in tourism and agriculture sectors. With the generous financial support provided by the Swiss and German Governments as well as the European Union (joined for the first time as co-donor), international implementing agency (GIZ) will address challenges in above sectors through improved policy framework in green economy and practices. Transforming economy towards sustainability will also create new and decent jobs.

Country/region Topic Period Budget
Employment & economic development
Climate change and environment
SME development
Environmental policy
01.06.2023 - 31.05.2026
CHF  2’115’000
Background Kyrgyzstan’s economic system is highly informal and  characterised by unbalanced structure of economy that is mainly prevailing by the service sector. Besides, economy is dependant on gold mining and migrant remittances. Country could achieve a more inclusive, sustainable and diversified economic growth pretty fast by expanding the role of the private sector in the economy. However, this is not the path taken so far. Besides, the efforts by private sector towards transition/transformation to a green economy are hampered by inadequate government policies incl. low tariffs/prices for energy resources. Since these opportunities are still limited as service providers can not yet offer green products or business advisory services Businesses and consumers need an access to the (green) technologies, knowledge and finance in order to be able to initiate a transition towards a greener economy. And the project is aimed at faciltating and assisting to such transition.
Objectives “The transition towards an inclusive green economy that benefits the well-being of the Kyrgyz population is strengthened”. 
Target groups

Project will target actors at different levels:

  • government agencies both at central and local level, as well as civil society/academia and private sector;
  • Micro-, Small-, Medium Enterprises, business associations and financial institutions;
  • farmers incl. youth, women;
  • general population who can make a difference for green economy by their lifestyles and private or professional investments; and finally
  • experts and other consulting service providers benefiting from advisory and training measures/activities on green economic topics.
Medium-term outcomes State agencies, associations, Micro-, Small-, Medium Enterprises, Non-Governmental Organizations, private individuals, educational and media institutions in the supported intervention areas demonstrate the ability to contribute to an inclusive green economy transformation.

Expected results:  

The expected outputs are:

  1. Green Economic Policy: Environmental, social and private sector issues are integrated into the development of evidence-based employment-oriented green economy policies.
  2. Green and Sustainable Micro-, Small-, Medium Enterprises: Micro-, Small-, Medium Enterprises in the supported intervention areas employ economically, socially and environmentally beneficial green economic practices.
  3. Green Social Change: Associations, public institutions, Non-Governmental Organizations, universities, media institutions use their advanced capacities in communication for social and behavioural change to promote products and services, greener lifestyles, pro-environmental behaviour amongst promising selected target groups.

Results from previous phases:  

During previous phases of the current Sustainable Economic Development (predessesor of the pipe-line Green Economy and Sustainable Private Sector Development Programme) commissioned by BMZ and co-funded by SDC:

  • establishment and institutionalizing of market systems under selected value chains for local producers and farmers who now are united and well-organized;
  • creation of 3,652 (of whom 1,813 are women) seasonal and permanent jobs in promoted green value chains and areas of intervention due to better yields, marketing activities and newly created services;
  • 207 Micro-, Small-, Medium Enterprises in cattle, fruits/vegetables and tourism value chains were able to increase their revenues by more than 30%;
  • 2,410 tons of bell peppers were exported to Russia and Kazakhstan and about 450 tons of organic plums to Europe.

Directorate/federal office responsible SDC
Project partners Contract partner
Private sector
Foreign state institution
  • Foreign private sector North
  • Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Coordination with other projects and actors
  • Swiss-funded: Bai Alai Project (Helvetas and Aga Khan Foundation); Small Business Initiative Programme (European Bank for Reconstruction and Development); Financial Inclusion (International Finance Corporation); Digital Financial Services (International Finance Corporation); Environmental and Social Governance (International Finance Corporation); Public Service Improvement (Helvetas); new upskilling project; and Water Use Permits.
  • European Union - German Federal Ministry for Economic Cooperation and Development co-funded: Integrated Rural Development Project.
Budget Current phase Swiss budget CHF    2’115’000 Swiss disbursement to date CHF    787’500
Project phases Phase 3 01.06.2023 - 31.05.2026   (Current phase) Phase 2 01.03.2021 - 31.05.2023   (Completed) Phase 1 01.06.2015 - 28.02.2021   (Completed)