Daria Solovieva
KAZAKHSTAN
Fintech Booms in Kazakhstan: Surging Growth and Future Prospects
Kazakhstan’s fintech sector has seen significant expansion, with active online banking users increasing from 5 million to 23.1 million between 2019 and 2023. The number of fintech startups grew from approximately 50 in 2018 to over 200 by 2024, reflecting increased activity in the digital financial services space. However, traditional banks still maintain a strong market position, with two major institutions controlling nearly 78% of transfers and payments, indicating a financial landscape where established players and new entrants coexist. [Source: Emerging Europe, Daryo]
Kazakhstan Doubles Down on EBRD Funds
The EBRD plans to double its investments in Kazakhstan, expanding its already significant financial involvement in the country’s infrastructure and business sectors. Kazakhstan’s openness to increased foreign investment across multiple industries highlights its continued reliance on external funding for economic development. While the partnership has yielded various projects, the long-term impact on Kazakhstan’s economic self-sufficiency and the effectiveness of these investments in driving sustainable growth remain uncertain.
Kazakhstan’s Deputy Prime Minister met with EBRD representatives to review ongoing projects and discuss increasing investments in the country. The EBRD aims to double its investments in Kazakhstan this year, targeting sectors such as energy, transportation, and private sector development. While both parties express optimism about the partnership, the extent of Kazakhstan’s reliance on foreign investment for economic growth remains a topic of consideration. [Source: Daryo]
UKRAINE
Czech Drone Production for Ukraine: Opportunism or Aid? A Czech-Ukrainian company near Kolin has begun manufacturing military drones solely for Ukraine’s armed forces, aiming to produce hundreds of units annually. The firm, UAC, is churning out both reconnaissance and kamikaze drones, with the latter capable of significant armor penetration or anti-personnel attacks. While currently focused on Ukraine’s needs, the company’s management has expressed ambitions to dominate the Central European drone market and supply NATO forces, raising questions about their long-term priorities and potential profiteering from ongoing conflicts. [Source: Ukraine Business News]
Ukraine Startups Seek Spotlight at Tech Event, Results Mixed
Ukrainian tech startups attended the NEXUS2050 conference in Luxembourg, presenting various projects to an international audience. The event, which drew participants from several tech-related industries, offered a platform for 17 Ukrainian companies to display their products and services. While the startups covered a range of sectors including AI, healthcare, and sustainability, the long-term impact and market viability of these ventures remain to be seen. [Source: TechUkraine]
Tech Firms Abandon Ukraine Plant, Shift to Czech Republic Amid Doubts
EDS Ukraine’s grand plans for expanding its transformer and EV charger production have hit a snag. After state authorities raided their offices and employees’ homes, the company quickly dropped its Ukrainian investment scheme. Now they’re eyeing the Czech Republic as an escape route, ditching their original plan to manufacture in Ukraine for Western markets. This retreat raises questions about the stability of Ukraine’s business environment and its ability to retain foreign investment. [Source: Ukraine Business News]
RUSSIA
Russian Gaming Startup Secures Funding, Aims for Global Market Despite Losses
Summary: Vintorog, a Russian gaming startup with ties to academic institutions, has managed to attract 12 million rubles in funding despite reporting a 9 million ruble loss in 2023. The company’s ambitious plans to expand into international markets and shift to in-house game development raise questions about its financial viability and the wisdom of its investors. [Source: app2top]
UZBEKISTAN
Yandex to Launch Uzbekistan Office in Tashkent Expansion
Yandex Uzbekistan plans to open an office in Tashkent this fall, which will centralize operations for its various services in the country and accelerate product launches and scaling. The company aims to recruit local IT talent through internships and programming schools, contributing to the development of Uzbekistan’s tech industry while expanding its own workforce. [Source: Spot.uz]
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