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E-commerce to help reduce shadow economy in Kazakhstan

Business Materials 28 July 2020 12:42 (UTC +04:00)
E-commerce to help reduce shadow economy in Kazakhstan

BAKU, Azerbaijan, Jul. 28

By Nargiz Sadikhova - Trend:

E-commerce market has become a trade turnover driver during the COVID-19 pandemic, Kazakhstan’s First Vice Minister of Digital Development, Innovation and Aerospace Industry Bagdat Mussin said, Trend reports with reference to the press office of Kazakhstan’s prime minister.

“For example, Amazon has created over 100,000 new jobs. Kazakhstan Flip.kz online store increased the number of jobs by 20 percent during the pandemic due to the growth of e-commerce. This suggests that online trade can not only save jobs, but also provide an opportunity to increase them,” Mussin said

He also said that the ministry will continue to work on transferring more industries online, especially in the regions. This is expected to ensure the goods turnover in country's economy, allow making purchases and receiving all services without leaving home.

In turn, Kazakhstan’s First Deputy Prime Minister Alikhan Smailov noted that e-commerce is one of the priority areas of the economy of Kazakhstan, which contributes to the transition to non-cash payments, a decrease in shadow trade and general growth of entrepreneurship.

"Total volume of the e-commerce market reached 435 billion tenge ($1.05 billion) in 1H2020, which is 2.2 times more compared to the same period in 2019," Smailov said.

Mussin also added that a number of measures needed to stimulate e-commerce market development.

First, it is important to ensure access to affordable long-term finance.

Second, with the involvement of Kazpost and courier companies, it is necessary to establish a supply chain from large warehouses to a retail recipient.

Third, Ministry of Trade and Integration, Ministry of Labor and Social Protection of the Population, Ministry of Digital Development, Innovation and Aerospace Industry, together with Atameken national entrepreneurship chamber, should provide training courses for a wide range of entrepreneurs to trade online.

A roadmap for the development of e-commerce in Kazakhstan until 2025 has also been developed.

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