The II Investment Forum ‘Development of Batken - Development of the Country’ was held in Batken. The key topic of the event was the Batken oblast development and its investment opportunities. Attention was also paid to such issues as regional trade development, SME support, green economy initiatives, climate change adaptation and cross-border economic cooperation. Also within the event, the Investment Council met and several decisions aimed at investment attraction to the region were adopted.

As part of the Forum, an exhibition was held where local businesses presented their products. An abundance of fruits, various vegetables and finished products adorned the stalls, but that was not all that the youngest region of the republic could boast of. For those who came to invest in technical and industrial activities, there was also something to see, stands of antimony deposits and companies manufacturing construction materials.

Both local investors and prospective partners, and representatives from Russia, China and Turkey manifested interest in the region. This is surprising, especially considering that until a certain time, Batken oblast was underestimated by potential investors. Today, the data of the National Statistics Committee demonstrate the foreign direct investment growth for July 2024, their volume increased 4.2 times to $1.9 million, while this figure did not exceed $305.4 thousand for the entire 2023. However, if compared to other oblasts, Batken oblast still has room to grow.

Batken Oblast, located in southwest Kyrgyzstan, has significant investment capacity due to its strategic location and rich natural resources. The region borders Uzbekistan and Tajikistan, which creates opportunities for cross-border cooperation and trade. An important feature is the special economic regime.

Special regimes have been introduced in the region, including favourable tax, investment, public procurement and provision of services to the population. Tax incentives have been established for 62 localities, such as a reduced income tax rate (5 per cent), income tax and sales tax exemption, and the possibility of land and property tax exemption. In addition, the incentives are granted to enterprises engaged in innovative, food, light and export-oriented production.

‘The minimum investment threshold in Batken oblast is $1 million, while in other regions - $3 million. For water resources, the minimum investment amount in the region is $10 million, while in other regions it is $20 million,’ Abdikarim Alimbayev, presidential plenipotentiary representative in Batken oblast, told during the Forum.

When you arrive in Batken, the first thing you will notice is how many fields and gardens there are, and this is not without reason, because agriculture is one of the key areas for investment in the Batken region. The region is famous for producing fruits, such as apricots, peaches, and vegetables (tomatoes, cucumbers, and potatoes). In addition, livestock breeding and producing quality honey, which is in demand in domestic and foreign markets, are well developed. To improve the competitiveness of agricultural products, the region is actively developing processing enterprises and introducing modern irrigation methods.

In addition to the agricultural sector, industry is an important area for investment. The region has a well-developed mining sector, where mineral deposits are being actively developed. The production of construction materials and the textile industry are also gaining momentum, which creates jobs and promotes export growth.

The energy sector in Batken Oblast also offers attractive investment opportunities. The region has the potential to develop mini-hydropower plants and solar and wind energy projects. In this regard, the Chinese company SanEnergyCo signed an agreement on the large-scale project implementation during the Forum.

"We are launching a 250 MVA/350 MW solar photovoltaic power plant project in Batken oblast, which will be a key step towards the region's sustainable development. Thanks to the support of the Kyrgyz Ministry of Energy, the Batken Oblast Administration and the Green Energy Fund, we have been allocated 669.3 hectares of land. About $230 million has been invested in the project, which will let us build transmission lines and a 220-kilowatt substation. In addition to generating solar energy, this project will contribute to the development of agriculture and improve the ecological environment. We will create about 700 jobs and help local specialists acquire new skills in construction and engineering,' Liu Yongji, General Director of Sun Energy Co LLP, told us.

Such initiatives can reduce dependence on traditional energy sources and contribute to the region's sustainable development.

Tourism is another promising sector for investment in the Batken region. Unique natural and cultural attractions such as the Kan-i-Gut cave, Pyramidal Peak and the rare Aigul flower attract tourists from around the world. The development of infrastructure for ecotourism and active recreation, and the promotion of the region's cultural traditions, such as carpet making, can significantly increase the tourist flow and create new economic opportunities.

All these areas were presented to potential investors and state authorities. As a result of the Investment Council meeting, which took place within the Forum, several decisions were made to support investment projects in the Batken region. The Plenipotentiary Representative of the President to the region was tasked to prepare and present 10 key investment projects that meet the special investment regime criteria. Together with state bodies, development funds and banks, work will be organised to assist in launching new regional investment councils and support existing ones. It is also proposed to strengthen coordination to increase the efficiency of project implementation and attract investment to the region.

The Batken region has yet to blossom, but the earlier decisions are already bearing fruit, as $2.12 billion worth of investment agreements were signed during the Forum, which will contribute to the region's development and become a catalyst for economic activity.