Official Source of the
Prime Minister of the
Republic of Kazakhstan
Close button

During pandemic, Internet and electronic government services became the first necessity — Bagdat Mussin

Tuesday, 28 July 2020, 11:17:44

At the government session chaired by Prime Minister Askar Mamin, First Vice Minister of Digital Development, Innovation and Aerospace Industry Bagdat Mussin reported on the development of e-commerce in Kazakhstan.

According to Mussin, during the pandemic, the Internet and electronic government have become essential services.

The development of e-commerce is a pressing issue in these challenging times. This year has seen its high growth rates. So, for 6 months of this year, the number of purchases in online stores reached 19.5 million goods. The number of purchases in Kazakhstani online stores has doubled — from 7 million to 14 million.

There are 4 main areas in e-commerce: electronics, food and products, clothing, pharmaceuticals. All work on domestic platforms.

According to Mussin, market analysis shows that during the pandemic, the structure of online consumption of citizens has changed. People have changed their priorities. There is a decrease in purchases of clothing and cosmetics. But at the same time, the population began to buy more food, medicine and baby products online.

The production of many commodity items that are relevant during a pandemic are available in Kazakhstan. Accordingly, it is proposed to actively work on bringing Kazakhstani manufacturers online.

During the pandemic, FoodTech and PharmTech became actively developing markets.

“For example, purchases of food products at the Kazakhstani supermarket Arbuz.kz increased up to 7 times during April-June compared to 2019. For the further emergence of online food services in the regions, we with Arbuz.kz, Chocofood and other market players will train local entrepreneurs in online sales,” Mussin said.

In the pharmaceutical segment today, there are problems with selling antibiotics online, as this requires an online formulation.

“To this end, we, together with the Ministry of Healthcare, will link online stores with telemedicine and the provision of online prescriptions,” said Mussin.

It should be noted that all Kazakhstani players have to compete with international start-ups, which are provided with long-term venture financing from abroad. For this, it is important to develop the domestic venture capital market, which will increase the competitiveness of Kazakhstani companies and bring them to international markets. In this direction, a draft law regulating venture capital is being worked out. There is also an agreement with Baiterek NMH JSC on attracting funds from QazTech Ventures to Kazakhstani startups.

The main tool for e-commerce is the development of logistics infrastructure. Kazpost JSC is working and opening three fulfillment centers for business.

Due to market needs, it is planned to open 20 fulfillment centers in the country by 2025. At the same time, the market begins to independently develop its own infrastructure. They need warehouse construction and last mile solutions.

Also in e-commerce, one of the key elements is the development of the last mile. Customers want to receive their goods in a fast and convenient way. The infrastructure of Kazpost allows solving this issue with the help of parcel terminals and parcel supermarkets.

Today, about 4 thousand front offices provide services. Market players are working to reduce delivery times. Today it is 1 to 3 days.

It should be noted that the market is open to everyone. More than 570 companies operate in the courier services market.

Kazakhstan is actively working to develop its transit potential. In this direction, Kazpost is implementing a Bond warehouse project on the territory of the Khorgos ICBC. Provides transit of goods both to Russia and to European countries.

Kazpost provides transit of goods from Germany and Great Britain to Russia and Central Asian countries.

The development of the penetration of e-commerce will be the transition of offline business to online.

“Our goal is to help offline entrepreneurs start selling online. To do this, we must teach seemingly simple and primitive things how to properly show our content to a client online — photographing a product, packaging a brand, and so on, which is very important in e-commerce,” said Mussin.

The importance of the availability of digital services, which will solve the headache of entrepreneurs, was also noted.

“We will collect them in Astana Hub. We are ready, together with the Ministry of Labor and NCE Atameken, to create a special program to train entrepreneurs in online sales throughout Kazakhstan. It is necessary to involve successful Kazakhstani Internet entrepreneurs in this work,” said the first vice minister.

An important step is to bring agricultural producers online. It is proposed to create a digital platform for agricultural products, which will directly link large retailers and agricultural producers. This will allow agricultural producers to open direct access to sales. They will also be able to get convenient banking and logistics services, organize the process of storing goods in the USC. This will exclude all intermediaries, and accordingly the price for the end consumer is reduced. The digital platform will also enable agricultural producers to enter international markets.

In conclusion, Mussin spoke about the trends that are taking place in the world.

“During the pandemic, the e-commerce market has become a turnover driver. For example, Amazon has created over 100 thousand new jobs. The turnover of Russian sellers on Aliexpress Russia has tripled. Kazakhstan online store Flip.kz during the pandemic increased the number of jobs by 20%, 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,” said Mussin, noting that the ministry will continue to work on the transfer of industries to online, especially regions, together with other ministries. This will ensure the turnover of goods in the country's economy, make purchases and receive all services without leaving home and maintaining social distance among the population.

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 the volume of shadow trade and the general growth of entrepreneurship.

"For the first half of 2020, the total volume of the e-commerce market reached 435 billion tenge, which is 2.2 times more compared to the same period in 2019," said Smailov.

To stimulate the development of the e-commerce market, it is necessary to actively work.

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 build 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 NCE Atameken, should provide training courses for a wide range of entrepreneurs to trade online.

A roadmap for the development of e-commerce in the Republic of Kazakhstan until 2025 has been developed. Taking into account today's discussions, it is necessary to carry out appropriate work.

News feed
30 October 2020, 16:57
Askar Mamin's trip to Akmola region: Infrastructure, agro-industrial complex, industry and tourism
30 October 2020, 16:24
Yeraly Tugzhanov instructs to take restrictive measures in order to stabilize epidemiological situation in East Kazakhstan region
29 October 2020, 19:14
Yeraly Tugzhanov gets acquainted with readiness of Aktobe and West Kazakhstan regions for possible wave of coronavirus
29 October 2020, 18:47
Prime Minister of Kazakhstan Askar Mamin receives Minister of Foreign Affairs of Kyrgyzstan Ruslan Kazakbayev
28 October 2020, 16:07
Optimizing costs and increasing oil recovery factor — what was done to digitalize energy industry
28 October 2020, 10:54
Working trip to Atyrau region: Tugzhanov inspects preparations of the region for possible wave of COVID-19
27 October 2020, 20:21
Arriving in Kazakhstan with international flights: What you need to know about restrictive measures regarding PCR certificates
27 October 2020, 10:33
From 2021, it is planned to develop three new draft laws — Ministry of Justice
27 October 2020, 10:28
Azamat Amirgaliyev appointed vice minister of justice of the Republic of Kazakhstan
27 October 2020, 10:22
Government considers Plan of Legislative Work for 2021
27 October 2020, 10:16
Prime Minister Askar Mamin and US Secretary of Commerce Wilbur Ross launched Kazakh-American Business Council
27 October 2020, 09:55
Prime Minister instructed to update Employment Roadmap for 2021
27 October 2020, 09:50
Resolving issues of providing population with clean drinking water — strategic task of Government
26 October 2020, 19:16
Prime Minister Askar Mamin chaired meeting of Interdepartmental Commission on Preventing Spread of COVID-19
26 October 2020, 17:14
Prime Minister Askar Mamin received Minister of Defense of Turkey Hulusi Akar
26 October 2020, 15:42
Government session to be held Oct. 27 in Ukimet Uyi
23 October 2020, 18:49
Issues of state information order, consolidation of state media and access to information — development of information sphere of Kazakhstan
23 October 2020, 15:41
Prime Minister Askar Mamin chaired meeting of Commission on Digitalization
23 October 2020, 15:02
Prime Minister Askar Mamin and EU Ambassadors discussed cooperation in economic recovery
22 October 2020, 18:20
Gulmira Isaeva relieved as vice minister of agriculture 
22 October 2020, 17:24
Council for Improving Investment Climate considers prospects for economic recovery in Kazakhstan
22 October 2020, 15:22
Prime Minister Askar Mamin informed about plans for development of electric vehicles production in Kazakhstan
22 October 2020, 14:54
Prime Minister Askar Mamin chaired meeting of Project Office on Entrepreneurship
22 October 2020, 12:03
Rural medical organizations presented with mobile medical complexes
21 October 2020, 09:56
Askar Biakhmetov appointed Deputy Head of the Office of the Prime Minister of Kazakhstan
20 October 2020, 14:51
Government approved project of gas supply to Almaty CHPP-2
20 October 2020, 14:38
Prime Minister of Kazakhstan Askar Mamin met with Suma Chakrabarti
20 October 2020, 13:35
Three-month supply of personal protective equipment formed in medical organizations — Alexey Tsoy
20 October 2020, 11:02
For 9 months of 2020, vaccination plan in Kazakhstan fulfilled by 100% — Ministry of Agriculture
20 October 2020, 10:27
Domestic enterprises daily produce 900 thousand masks — Beibut Atamkulov
20 October 2020, 10:17
Government considers issues of providing population with medicines
20 October 2020, 10:02
Government considers issues of veterinary and phytosanitary safety
19 October 2020, 17:13
Prime Minister Askar Mamin gave instructions on sanitary and epidemiological situation in Kazakhstan
19 October 2020, 14:36
Government session to be held Oct. 20 in Ukimet Uyi
15 October 2020, 23:56
Improving healthcare and increasing business activity — development of Almaty for 9 months of this year
15 October 2020, 15:28
Prime Minister Askar Mamin takes part in opening ceremony of Hyundai car assembly plant
13 October 2020, 13:14
Main task of clarifying forecast was to provide financial support to doctors and take proactive measures on COVID-19 — Alikhan Smailov 
13 October 2020, 13:01
Production in machine-building industry grew by 16.6% — Beibut Atamkulov
13 October 2020, 11:35
State budget expenditures executed at 99.5% — Ministry of Finance
13 October 2020, 11:13
National Bank launches remote biometric identification service for obtaining financial services
13 October 2020, 10:22
Over 9 months in Kazakhstan, investments in healthcare increased by 85.7% — Ministry of National Economy
13 October 2020, 09:49
Along with growth in real sector, recovery of activity in service sector began in September 2020 — Askar Mamin
12 October 2020, 16:34
Askar Mamin’s visit to Abu Dhabi: Kazakhstan and the UAE accommodated investment projects for $6.1 billion
12 October 2020, 16:18
Government session to be held Oct. 13 in Ukimet Uyi 
09 October 2020, 19:23
Amendments to law, social payments to electronic wallet and use of pension savings — how Ministry of Labor implements instructions of the Head of State
09 October 2020, 16:57
Prime Minister Askar Mamin presents initiatives on strengthening competitiveness of EAEU
08 October 2020, 19:06
Prime Minister Askar Mamin discusses implementation of joint projects with leadership of large Russian companies
08 October 2020, 18:44
Interdepartmental Commission adopts decisions on implementation of instructions of the Head of State
07 October 2020, 23:04
Prime Minister of Kazakhstan Askar Mamin meets with Prime Minister of Russia Mikhail Mishustin
06 October 2020, 14:58
Beibut Atamkulov: Investments in country's pharmaceutical industry grew by 5.2% and amounted to 4.1 billion tenge
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.