World Monitor Magazine, №1/2020 WM_March 2020_FOR WEB (12.03.) | Page 10

DESTINATION KAZAKHSTAN
strengths and weaknesses, as well as an
expert assessment and full support before
export.
As a result of the introduction and testing
of export acceleration, by 2025 we expect
that 600 new food and light industry
enterprises will appear in the country,
confidently exporting their products to new
markets.
Another mechanism for the development
of regional trade is the conclusion of
agreements on free trade zones. This is one
of the most effective trade liberalization
tools that provide access to commodity
markets through the mutual elimination of
tariffs, non-tariff barriers (quotas, technical
barriers, etc.).
So, with Vietnam, the Free Trade
Agreement has been in force since October
2016. During this time, trade grew by 51%
(from $366.3 million to $554.3 million).
An interim agreement with Iran began to
operate in October 2019. For Kazakhstan,
import duties on such products as beef,
vegetable oil, confectionery and pasta
have been reduced.
Free trade agreements have been signed
with Serbia and Singapore recently, and the
potential for increasing export deliveries to
these countries is $150 million and $416
million, respectively.
Active negotiations are underway to create
such zones within the EAEU with Israel and
Egypt. The expected amount of increasing
exports exceeds $790 million.
How is e-commerce being promoted?
The development of electronic commerce
provides Kazakhstan with a high
potential for economic growth – this is
the development of trade, expansion of
sales, access to world markets and the
development of transit potential.
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world monitor
For 10 months of 2019, the share of
electronic commerce in Kazakhstan in the
volume of retail trade amounted to 3.4%
(8.9 trillion tenge); last year this indicator
was 2.9% (10.1 trillion tenge).
There are more than 2,000 independent
online stores operating in the Kazakhstani
market, of which 579 are registered for tax
benefits.
At the same time, over 2019, the volume
of purchases on Kazakhstani Internet sites
amounted to 22 million units, last year – 8.7
million units; online customers purchased
goods at 422 billion tenge, while in 2018
it was 153 billion tenge.
In 2019, the volume of purchases on
international Internet platforms amounted
to 17.5 million, in 2018 – 26.3 million units
and the volume of purchases amounted
to 280 billion tenge, while in 2018 – 147
billion tenge.
In January-September 2019, the volume of
non-cash payments doubled and amounted
to 8.3 trillion. tenge.
Currently, on the basis of e-commerce
centees of Kazpost JSC, export schools
have been organized to train entrepreneurs
in skills and processes for selling goods
on the global Internet platforms Amazon,
AliExpress, Ebay and others.
In 2020, the ‘School of Internet Exporter’
program was launched, according to
the results of 50 enterprises, they were
transferred to the international platform
Alibaba with the status of the ‘Golden
Supplier’, 6 companies – to Ebay and
Etsy. In the future, it is planned to create
a Kazakhstan pavilion at the Alibaba
site, which will increase the number of
producers on this platform.
For all 50 companies, service support is
provided, including advice on emerging
issues and monthly webinars.
The goal of the program is to stimulate
exports through Kazakhstani electronic
trading floors. The program participants
were trained by international experts
on doing business on electronic trading
platforms such as Amazon, Ebay, Alibaba,
etc, an analysis of the features of work
in this area was carried out, as well as
practical advice on positioning their brand.
In addition, it is planned to create an
official service partner in Kazakhstan at
the Alibaba Group site, which, in turn, will
give an impetus to export development.
These skills will allow Kazakhstani
producers and entrepreneurs to place
their products on international trading
floors, where more than 270 million people
purchase goods daily.
Today, e-commerce centres are open
in the cities of Nur-Sultan, Almaty,
Karaganda, and Shymkent. In 2019, 2,000
SME representatives were trained, and by
2025 more than 25,000 will be covered. As
part of the export school, we trained 1,700
SMEs (1,700 by the end of the year), but
by the end of 2025, it will be more than
16,000.
In addition, fulfillment centres are open in
the cities of Nur-Sultan, Almaty and Aktobe,
where owners of online stores can receive
a range of services, including acceptance,
processing, storage, tracking and delivery
of goods to the final consumer.
At the same time, online stores minimize
their logistics costs, renting a warehouse
for goods, personnel and other costs,
and the delivery time for parcels is also
significantly reduced. Together with the
services of fulfillment centres, Kazpost
JSC offers its clients the entire financial
infrastructure
(in-house
processing
services and payment instruments).
For the convenience of entrepreneurs
engaged in electronic commerce, it is