Categories: World

Investment in agriculture could boost growth in Central Asia

Policy reviews published recently by the UN suggest former Soviet Union countries Tajikistan and Kyrgyzstan could boost growth and create…

Although Tajikistan’s GDP has grown on average 8%/year since 2000, half of its working-age population is unemployed, according to a statement released by the United Nations Conference on Trade and Development (UNCTAD).

READ How a business investment became a farming passion

The statement quotes James Zhan, director of UNCTAD’s Division on Investment and Enterprise, as saying that private investment in the country has been among the lowest in Central Asia.

“We’ve seen increased investment in prospecting for minerals and oil, but for the time being, Tajikistan has only a few proven deposits compared with its neighbours,” said Zhan, noting that these deposits were hard to access.

However, according to the report, Tajikistan, which used to be a major producer of fruits, vegetables, silk and cotton, has strong potential in agribusiness.

According to the UNCTAD, most of the agricultural products currently produced in Tajikistan are unprocessed, leaving an opportunity for processing, storage and packaging.

Tajikistan’s neighbour, Kyrgyzstan experienced failing investor confidence following political unrest in 2005 and 2010, however, according to the UNCTAD, foreign direct investment (FDI) in the country’s mining sector jumped from US$50 million in 2005 to some US$600 million in 2011.

Meanwhile FDI in other sectors struggled to pass US$200 million/year, sometimes dipping below US$100 million and investments in the mining sector failed to generate enough jobs to slow the growth of unemployment among its 5,8 million population.

The UNCTAD’s investment policy review on Kyrgyzstan suggested that, with its “low labour costs, mild weather, good pasture and pristine mountain landscapes” the country held strong potential for agribusiness development.

Furthermore, it had access to large markets in the Russian Federation and Kazakhstan. But the report also called for more investment in infrastructure, noting that roads were in severe need of maintenance and that electrical grids were unreliable.

Recent Posts

Leafroll virus in vines can be beaten – here’s how

Leafroll virus is a serious threat to South Africa’s viticulture industry: it shortens the lifespan of vineyards and has a…

24 hours ago

Farmers welcome sharp decline in fuel prices

The large drop in the diesel price that can be expected for December, as announced by the Automobile Association (AA)…

2 days ago

A healthy profit from pasture-raised eggs

As a technician specialising in the installation and repair of gates, Rico Vergotine had little reason to be interested in…

2 days ago

Israeli-inspired chickpea burgers

Veganism is a growing global trend, and many of us will serve dinner or lunch to a vegan guest at…

2 days ago

EkoNiva producing more than 1 300t of milk a day!

EkoNiva-APK is a leading milk producer in Russia and Europe. Sophisticated technology and facilities are largely behind its success.

3 days ago

Agri leaders respond to recommendation to amend Constitution

The Joint Constitutional Review Committee has adopted a resolution that Section 25 of the Constitution must be amended to allow…

3 days ago

This website uses cookies.