14 May, 2019

Development of e-commerce to increase transit incomes of logistics companies to 1.27 trillion tenge by 2025

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At the meeting of the Government chaired by Prime Minister Askar Mamin, Minister of National Economy Ruslan Dalenov, Minister of Digital Development, Defense and Aerospace Industry Askar Zhumagaliyev, Chairman of the Board of Kazpost JSC Saken Sarsenov reported on the ongoing work on the development of e-commerce. It is reported by the press service of Akorda.

“E-commerce is a global trend, one of the most dynamically developing areas of the service economy,” said Mamin.

Head of Government noted that e-commerce should be considered as one of the drivers of economic growth. Given the developed infrastructure, increasing the volume of electronic commerce will create new jobs. Today, 33 thousand people are employed in this and related industries. By 2025, it is planned to increase this figure to 314 thousand people.

According to forecasts, by 2025, the volume of purchases on Kazakhstani Internet sites will increase from 153 billion tenge to 2 trillion tenge and amount to 25% of the total retail trade. The expected income of logistics companies from transit through e-commerce will grow to 1,270 billion tenge by 2025.

“Considering the existing infrastructure of the West China – Western Europe corridor, along with the growth in container traffic and logistics, a great direction is opening up for road carriers,” said Mamin. “The multiplicative effect of e-commerce on the economy will make it possible to predict the annual contribution to GDP at the level of 1.1%, to increase the intensity of transportation to Europe from China through Kazakhstan from 2 thousand to 21 thousand per day by 2025.”

The Prime Minister Mamin noted the potential for selling, through electronic trading, products of domestic agricultural production and other manufacturing industries abroad, including to China. For example, an annual growth of 20% of e-commerce in food and agricultural products is expected.

“Given the global trend of closing large retail chains and using them as warehouses in e-commerce, logistics centers may become a key market direction in the future,” said Askar Mamin. In this regard, he instructed to continue work on launching transport and logistics centers by 2025 in all major cities of the country. According to Mamin, this work should involve domestic and foreign investors, including using PPP mechanisms and the existing infrastructure at Khorgos.

Special attention was paid to the issue of training. Taking into account the growth of jobs by more than 280 thousand expected by 2025, Mamin noted the need for Kazpost JSC and logistic companies to consider taking control over the process of training specialists in specialized areas at colleges and other educational institutions.

“E-commerce will give impetus to the further growth of the economy. We must make every effort to develop it as a whole ecosystem, effectively using transit opportunities, transport and logistics infrastructure and increasing the potential of the domestic market,” said Askar Mamin.

Following the consideration of the issue, the prime minister commissioned to develop a roadmap for the development of e-commerce until 2025.

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