Current aspects of digitalization in Kyrgyzstan
In 2024, Kyrgyzstan achieved significant success in the field of digital economy, which was made possible by several key trends. All these trends are aimed at creating a digital ecosystem that will contribute to the sustainable and inclusive development of the country.
One of the most notable areas was the creation of convenient online services for citizens and businesses. This has made it possible to improve the quality of service and improve the efficiency of government agencies by automating business processes and improving electronic interaction and data exchange.
Another important step in 2024 was the introduction of a digital platform that will monitor the implementation of decisions and launch new business processes. This platform will greatly simplify and accelerate the development and implementation of projects in various sectors of the economy.
Special attention was paid to the development of digital skills among state and municipal employees. Training in digital technologies, analytics and data management has become a prerequisite for the successful transformation of all branches of government.
The authorities also sought to simplify the interaction between the state, society and business through digital services. These changes are aimed at making administrative procedures more accessible, transparent and efficient.
Significant progress has been made in the medical field thanks to the creation of an integrated digital medical record. This has improved the quality and speed of patient care. The system of admission of children to schools and kindergartens was also automated, which contributed to a more equitable and systematic process.
Digitalization has penetrated into areas such as social benefits, labor and employment, as well as agriculture. It implies effective and transparent management of resources and processes in these areas.
The main goal of these transformations is to create a digital ecosystem that can not only improve public administration and provide high-quality services, but also open new horizons for economic and social development, as well as improve the standard of living of Kyrgyz citizens.
Below we present the current trends of digitalization in Kyrgyzstan, supported by statistical data:
- In 2024, the implementation of the Concept of Digital Transformation for 2024-2028 continued in Kyrgyzstan.
- According to the National Statistical Committee of the Kyrgyz Republic, 99% of the country's citizens have access to mobile Internet, of which 70% have access to high—speed 4G Internet. 62.8% of the Kyrgyz population aged 15 and over use the global network.
- Information systems have been launched in Kyrgyzstan to facilitate the admission of children to schools and kindergartens. The iLab national medical laboratory information system was also created and a digital health profile was introduced.
The priority areas of development in the country have become:
- Digital transformation of business processes and production links using strategies for the development of the digital economy of partner countries;
- Reducing barriers to the development and development of digital technologies.
Digitalization in Kyrgyzstan is based on weighty prerequisites that allow the country to move towards technological progress and a modern digital economy. Strategic state documents such as the National Development Strategy for the period 2018-2040 and the Concept of Digital Transformation "Digital Kyrgyzstan 2024-2028" serve as the basis for this. These fundamental documents contribute to the faster introduction of digital technologies into the economy and society.
An important step towards the implementation of these plans was the introduction of a system of interdepartmental interaction and electronic document management. This has greatly simplified communication and interaction between various government agencies. In addition, citizens' access to electronic government services has been simplified, which has become a significant step towards digitalization of public procedures.
The plans include the creation of world-class infrastructure, including the development of broadband Internet access, the construction of data centers (data centers), the introduction of cloud technologies and the development of digital platforms. These measures are aimed at strengthening the technical base that will support and develop the digital economy of Kyrgyzstan.
The main goals of digitalization are the formation of a digital state, digital economy and digital business, as well as the development of necessary skills and education. In addition, an important aspect is to accelerate the process of creating smart and sustainable cities, which should lead to an improvement in the quality of life of citizens.
Special attention is paid to the accessibility and security of digital services for the public.
The effectiveness of the digital reforms carried out in Kyrgyzstan is confirmed by the dynamics of international ratings:
- UN E-Government Development Rating. In 2022, Kyrgyzstan rose by 20 positions compared to 2014, taking 81st place among 193 countries.
- The E-Participation Index (EPI) indicator. This index evaluates the electronic participation of citizens. Kyrgyzstan took 79th place in the ranking of electronic participation.
- In 2023, Kyrgyzstan took 71st place in the global ranking of digital quality of life, improving its result by 10 positions compared to last year, when it was in 91st place. In the regional ranking for Asia, the country was in 23rd place. The assessment was carried out according to five main criteria: Internet affordability: how affordable is a broadband internet connection; Internet quality: how fast and convenient it works; development of digital infrastructure: how the country uses modern technologies to improve people's lives; Internet security: how protected users are from threats and scams; E-government: how the state system works to improve the lives of citizens.
IT companies in the Kyrgyzstan today
In 2024, Kyrgyzstan is experiencing dynamic growth in the service sector, including programming. For the period from January to August 2024, the volume of gross output in the service sector amounted to 628.6 billion soms, which is 5.8% higher than in the same period of the previous year. These impressive results indicate that the service sector as a whole is developing in a positive way.
Well-known IT companies are actively developing in Kyrgyzstan, including:
- EPAM is the world's leading provider of digital platform design and development services. In 2021, the company opened an office in Kyrgyzstan, where more than 200 specialists work. EPAM is actively engaged in training IT specialists, developing professional communities, strengthening ties with universities and actively developing the ESG direction.
- Softline is a leading international company specializing in software licensing and providing a full range of IT services, including technical support, IT outsourcing, training, legal support, consulting and cloud solutions. Softline is an authorized partner of more than 3,000 software manufacturers, including such giants as Microsoft, Autodesk, Symantec, Kaspersky Lab, Oracle, Citrix, IBM, Corel, Prompt, Abode, Trend Micro, Alladin, Kerio, VMware, Eset, SAP and many others.
- Timely Soft is a reputable IT company engaged in consulting and information technology. It is a Microsoft gold partner and currently employs about 1,300 people. The company plans to further expand its staff to provide even better customer service.
- Finance Soft is a leading developer of banking software in Kyrgyzstan. The company has significant experience in creating, implementing and maintaining financial solutions, which allows it to work effectively both in the financial and public markets.
Kyrgyzstan is actively developing in the field of information technology, launching many successful projects and startups. Here are just a few of them:
- Alto's POS & Inventory is a SaaS application designed to automate sales and inventory management in restaurants and retail businesses. As of October 2024, this application is popular with more than 4,000 people.
- Mystery is a service that creates personalized stories using artificial intelligence. He recently attracted an investment of $100,000.
- Appkel is a free grocery and goods delivery service in just 15 minutes. This company is rapidly gaining popularity, given the growing demand for fast delivery. In the last two years alone, from 2022 to 2024, the active audience of the service has increased from 800,000 to 2.6 million people.
- DiGi is the first deeptech company in Kyrgyzstan that uses artificial intelligence to solve various tasks. For example, she is engaged in monitoring and forecasting emergencies.
The best IT projects in Kyrgyzstan:
- Growave is a B2B startup that became the first in the country to develop a marketing platform for online commerce Shopify. This platform is a set of tools that automate the marketing processes of online stores. It helps them find their audience, attract new customers and gain their trust.
- Mad Devs is an international company specializing in creating enterprise software solutions for businesses. Her portfolio includes projects in various fields: finance, transport and logistics, security, educational technology and advertising.
Among the unique projects implemented by the company, there is a food delivery service in Kyrgyzstan and a car sharing service in Vietnam. These initiatives clearly demonstrate Kyrgyzstan's desire to develop the digital economy and increase the level of IT competence among the population.
Modern problems and challenges
In the process of digitization in Kyrgyzstan, a number of problems and challenges arise that must be overcome for the successful development of the digital economy in the country.
One of the key difficulties is related to the fact that more than 90% of information and communication technology (ICT) content in Kyrgyzstan is presented in Russian and English. This creates obstacles for rural residents who do not speak Russian and limits their access to digitalization opportunities.
In addition, Kyrgyzstan is facing economic backwardness. About 50% of the population of the republic is below the poverty line. There is a digital disparity between urban and rural areas, especially in remote areas.
Another problem is mass labor migration. The lack of jobs leads to the fact that many citizens leave for work, mainly in Russia and Kazakhstan. Remittances from migrant workers are becoming an important source of consumer demand and the growth of the gross domestic product (GDP) of the republic.
The digitization process in Kyrgyzstan is hampered by budget deficits, and the government must find a solution to this problem. External borrowing is needed to service the deficit. Kyrgyzstan's public debt has reached $4.4 billion, which is almost 56% of GDP.
However, not only the budget deficit hinders the development of digital technologies, but also the weakness of the innovation sector. To overcome these obstacles, it is necessary to combine the efforts of the Government, the private sector and the international community. It is also necessary to implement strategic programs and projects that will ensure equal access to digital technologies for all citizens.
Conclusion
Kyrgyzstan has great potential to become one of the leaders in the field of information technology in the Central Asian region. This is facilitated by the active support of the government, which creates all the necessary conditions for the development of the IT industry. Among these conditions are legislative initiatives, investments in education and infrastructure, as well as the promotion of innovation and technological entrepreneurship. One example of such support is the Concept of digital Transformation "Digital Kyrgyzstan 2024-2028". This is a government initiative aimed at developing digitalization in the country. Within the framework of this concept, a whole range of measures is being implemented to introduce the latest information technologies in various spheres of economics and management.
In addition to government support, talented IT specialists and developers play an important role in the development of the digital economy. Thanks to their skills, knowledge and innovative approaches, they are able to create products and services that can compete in the global market. Kyrgyz universities and private educational initiatives pay special attention to the training of highly qualified personnel in the field of high technologies. This can be the key to the sustainable development of the digital economy in the country in the future.
Thus, digitalization opens the door to improving production processes, improving the quality of goods and services, optimizing costs and improving people's living standards. The transition to the digital economy contributes to increased labor productivity and competitiveness, which, in turn, simplifies access to international markets.