The green transition of Central Asia requires know-how and technology
Ilmastonmuutos kaventaa Keski-Aasian vesiresursseja, joiden kulutusta kuvastaa kuivuva Aral-järvi. The climate change reduces the already scarce water resources of Central Asia. The Aral Sea has been shrinking for decades. Photo: WaSZI/Pixabay.
Finnish companies got new sales leads during the Team Finland trip to Uzbekistan and Kazakhstan in February.
By Patrik Saarto
During the last year the Central Asian market has become more attractive for countries all over the world. Of course, this fascinating market demands particular caution regarding the sanctions compliance. Finland is taking part in the growth and competition in the Central Asian market.
The Team Finland trip to Uzbekistan and Kazakhstan, organized by EastCham Finland and the Ministry for Foreign Affairs of Finland, confirmed once again the perception that Finnish know-how meets the needs in Central Asia. Around thirty representatives of companies, led by the Minister for Foreign Trade and Development Ville Skinnari, showcased their solutions for local companies and officials.
According to Jaana Rekolainen, the CEO of EastCham Finland, Uzbekistan and Kazakhstan have similar demand on many sectors, but they are currently at a different stage of economic and political development.
– Uzbekistan has a young population and developing economy. It’s not such a competitive market, so there will be significant development in coming years. Kazakhstan is a much more established, wealthier, and more competitive market, and this makes the demand slightly different, Rekolainen says.
Central Asia is now taking a green leap. There is huge need for water expertise both in Kazakhstan and Uzbekistan, because the climate change is diminishing the water resources, that are already scarce. Water is linked to energy production, agriculture as well as mining sector. Besides factories and homes, the sustainable development needs internet – according to the Minister of Ecology and Natural Resources of Kazakhstan Zulfiya Suleimenova the green transition is impossible without digitalization.
The Minister of Ecology and natural resources of Kazakhstan is the youngest minister in the history of Kazakhstan. Photo: The Ministry of Ecology and natural resources of Kazakhstan.
Water, internet, and education
The demand for water expertise in Central Asia is not a surprise for Finnish Water Forum, an organization consisting of Finnish companies specialized with water treatment. The companies have for years supplied water treatment solutions for homes and business especially in Kazakhstan and Kyrgyzstan, says Project Manager Arvo Nerman. Finnish Water Forum is involved in B2B business as well as UN-led projects and took also part in the Team Finland trip in February.
– I know that some of our members got very solid leads, Nerman says.
“Some of our members got very solid leads.”
With the prestigious delegation it is possible for companies to meet local officials, decision makers and companies, which is not so easy to arrange by a small or medium sized company by themselves alone. According to Nerman, local business culture favors having deals with one supplier, so it’s better to go there together, e.g. as a consortium. That’s why a visit of official delegation may open more doors for meetings as well.
But the unofficial coffee and lunch breaks are as important as official meetings. During a long lunch break it is possible to meet potential partners, Nerman says. A visit to Almalyk copper mine was also impressive – the delegation would discuss with the CEO of Almalyk under the open sky, staying next to the huge mining pit.
– I wish such delegation trips would be annual or semiannual, Nerman says.
The Kajaani University of Applied Sciences KAMK is discovering the potential of Central Asia as well. The university has been developing different technological solutions for mining industry, especially related to water, tailings and digitalization of processes and control, says Director of International Education Cooperation Anas Al Natsheh from KAMK. This would help to modernize the production and make it environmentally sustainable.
– The trip went fine and good possibilities have been found in Uzbekistan. We are already planning a project with three Finnish companies in there and currently discussing the issue with local partners, Al Natsheh says.
“Good possibilities have been found.”
But buying technology is not enough. There must be education as a foundation and specific knowledge how to use the technology once it’s supplied. There is now huge interest towards Finnish education system in Central Asia, starting from schools. Local companies are interested to send their employees to Finland for courses, regarding e.g. IT or information security.
The question is extremely topical in Uzbekistan, where the young population is now competing with each other for knowledge and jobs.
– The young people are the asset of Uzbekistan. When they get the young generations educated, they will become natural resource of Uzbekistan in 20 years, says the Director of Services of EastCham Finland Tarja Teittinen.
The impressive visit in Almalyk copper mine in Uzbekistan. Photo: Tarja Teittinen.
More trips to come
It has become clear, that when Finnish companies visit Central Asia, demand and supply will meet. EastCham is planning new Team Finland trips with the Ministry for Foreign Affairs of Finland to the area. Any wishes and needs from companies are welcomed in the process.
– We are planning a trip to Almaty, Kazakhstan and Baku, Azerbaijan probably in autumn this year. Also smaller trips, focused on specific sectors, may come into question, Rekolainen reveals.
Until that it is recommended to take all the benefits from the services, events, information and networking offered by EastCham Finland.
– The momentum is now. We invite all companies to join EastCham, because it is profitable for any company to act as collective Finland in these rushed markets, regardless of the size of the company. Together we are much more, Teittinen encourages.
The Team Finland trip to Tashkent, Uzbekistan and Astana, Kazakhstan was organized in 21-25 February 2023. The Finnish-Uzbek Intergovernmental Commission for Economic Cooperation hold a meeting, hosted by Minister of Investments, Industry and Trade of Uzbekistan Laziz Kudratov, in Tashkent during the trip. In Kazakhstan, Minister Skinnari unveiled a center focusing on entry matters at the Embassy of Finland in Astana.