Bishkek, Kyrgyz Republic, January 29, 2016
– Corruption, a lack of governmental transparency, and an unpredictable
legal and regulatory environment are key constraints to business in the
Kyrgyz Republic, says a survey released today by IFC, a member of the World
The report, “Investment Climate in Kyrgyz Republic – Views of Foreign
Investors,” also identifies the ‘pain points’ within the country’s
investment policy and offers recommendations to make the Kyrgyz Republic
more investor friendly.
“The government recognizes the need for a robust investment climate that
is transparent and encouraging,” said Alymbek Orozbekov, Head of Investments
Department of the Ministry of Economy. “We are grateful to IFC for this
analysis of whether the current regulations are investment-conducive and
look forward to implementing recommendations and best practices in business
regulations and regulatory governance in an effort to spur investment,
create jobs, and boost growth.”
While it is fairly easy to enter the Kyrgyz market and register a company,
operating a business and doing it effectively is much less so. A transparent
and predictable legal environment is critical to encouraging investment,
and the Kyrgyz government should continue to simplify and streamline regulations,
specifically in the areas of permits and licensing.
The report highlights public order and security as other critical concerns
and sees considerable potential for boosting foreign investment. Among
the top five determining factors for investors are the importance of investing
in a domestic market, the ease of company registration procedures, the
ease of obtaining necessary permits and licenses, legislation conducive
to business development, and access to cheap labor.
“Foreign direct investment can bring more and better jobs, improve productivity,
and foster economic growth,” said Serhiy Osavolyuk, IFC Project Manager.
“But to attract investors, the Kyrgyz Republic must first eliminate bottlenecks
to doing business. These include reforms that target investment entry regulations
and investment incentives, help reduce uncertainty for investors, and enable
the government to attract more and better-quality investments
The initiative is part of the Central Asia Investment Climate Program,
which is funded by the government of Switzerland and the United Kingdom’s
Department for International Development, and implemented by the World
Bank Group Trade and Competitiveness Global Practice.
About the World Bank Group
The World Bank Group is one of the world's largest sources of funding and
knowledge for developing countries. It comprises five closely associated
institutions: the International Bank for Reconstruction and Development
(IBRD) and the International Development Association (IDA), which together
form the World Bank; the International Finance Corporation (IFC); the Multilateral
Investment Guarantee Agency (MIGA); and the International Centre for Settlement
of Investment Disputes (ICSID). Each institution plays a distinct role
in the mission to fight poverty and improve living standards for people
in the developing world. For more information, please visit www.worldbank.org,
To learn more about Swiss Assistance, please visit
To learn more about the UK’s Department for International Development,
please visit www.dfid.org.