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AKIPRESS.COM - IFC, a member of the World Bank Group, released December 12 the results of a five-year program which aimed to help the Kyrgyz Republic to improve the business environment and to promote private investments in order to create jobs and support sustainable economic development.
The initiative is part of the IFC Central Asia Investment Climate Program, which is funded by the government of Switzerland and the United Kingdom’s Department for International Development, the Swiss Embassy said.
The project implemented by IFC in close collaboration with State agencies and the Ministry of Economy has helped the Kyrgyz government to introduce risk-based inspection system that has reduced the inspections burden: compliance costs for the private sector have been reduced by an estimated $5 million over the past few years. IFC support to investment policy reforms has generated an estimated $14 million additional investment to the economy. The tax system reforms, which was another component of the project has enabled businesses to save $ 2.2 million in 2016 only.
The Program has also ensures the development of relevant legislation as regards food safety, and initiated a number of important reforms to help local food producers to access new markets.
“The government of the Kyrgyz Republic has been working on improving the business climate and we have positive results. With inspection numbers significantly reduced, the risk level assessments and planning of inspections are now fully automated,” said Daniyar Imanaliev, Deputy Minister of Economy of the Kyrgyz Republic. “However, making the country a better place for businesses is a long-term, continuous process. We thank IFC for its long-standing support and hope to work together on the next reforms.” .
“Switzerland, through the State Secretariat for Economic Affairs (SECO), has been supporting since 2008 initiatives that aim to create a favourable business environment. This was done by supporting reforms in the field of tax administration and business regulation. A necessary condition for successful reform process is the involvement of the private sector in the project design and monitoring,” said Véronique Hulmann, Ambassador of Switzerland to the Kyrgyz Republic.
“An attractive investment climate is a prerequisite for an economy that wants to grow and create jobs”, said Martin Naegele, IFC Country Officer. “IFC, together with the World Bank, has been helping the Kyrgyz government resolve legal and policy weaknesses, to improve the operating environment for business and unlock the country’s potential to attract new investment.”
The Swiss Government and WBG/IFC will continue supporting the Kyrgyz Republic to create more favorable business environment, attract and retain foreign direct investment, and unlock new markets for the local businesses.