Evaluation of social and economic impact of the Russian-Kyrgyz Development Fund. 2019 results

The assessment of the social and economic effectiveness of the Russian-Kyrgyz Development Fund includes an analysis of the dynamics of changes in the indicators of effects from the implementation of projects both under the direct financing program and under the small and medium-sized businesses financing program.

The results of the RKDF activities affect various aspects of society. The economic benefit reflects the impact of the RKDF activities on macro indicators, including the impact on the republic foreign economic activity. A component of the economic benefit is the budget effect, which characterizes the impact of projects on the budget — tax revenues. The social impact of the RKDF activities reflects the impact on employment. Each of these benefits can reflect the interests of a certain target group, the scale of the RKDF activities impact.

The assessment of indicators of the actual social and economic effect from the RKDF activities is based on the primary information received by the RKDF based on the project implementation monitoring results.

The RKDF is an effective institution for promoting sustainable development of the Kyrgyz Republic.

RKDF-funded projects contribute to:

  • infrastructure development,
  • economy modernization and diversification,
  • have significant socio-economic benefits.

Through investments, the RKDF promotes:

  • increase in total revenue,
  • employment,
  • growth in tax payments,
  • trade flows,
  • additional production,
  • the multiplier effect in the economy of the republic.


 In 2015-2019, 2,351 projects were approved for the amount of USD 379.4 million (as of December 31, 2019).

In particular, the RKDF approved direct project financing in the amount of USD 202.12 million and USD 177.27 million were issued in the framework of «Lending to small and medium-sized businesses» program through commercial banks.

RKDF gives the priority to the projects for the development of the agro-industrial complex, processing, agriculture, production and transport infrastructure.

The total revenue of enterprises and private entrepreneurs who received RKDF funding, at the end of 2019 amounted to 51.2 billion KGS (8.7 percent of GDP).

The revenue of enterprises and private entrepreneurs who received RKDF funding increased by 132 million US dollars. The growth rate of total revenue from both direct financing and the SME program amounted to 18.1 percent. Borrowers under the SME program show higher rates of profitability (the rate of revenue growth at the end of the year was 25 percent).

The total tax payments amounted to 5.4 billion KGS, or 4.5 percent of all tax payments to the State budget of the republic. Resulting from the expansion of production and, accordingly, an increase in the number of employees the tax payments increased by 21.0 percent. Tax payments increased by USD 13.5 million.

The exports of enterprises and private entrepreneurs (being funded by the RKDF) to the Russian Federation increased by 34 percent at the end of 2019, to the EEU countries — by 8 percent.

At the end of 2019, the exports to the Russian Federation in value terms amounted to USD 38 million, to the EEU countries — USD 28.5 million and to the third countries — USD 91 million.

Enterprises and private entrepreneurs who received the RKDF funding have purchased an equipment for USD 134.3 million, including:

  • from the Russian Federation — USD 26 million,
  • purchases on the national (domestic) market amounted to USD 26 million,
  • from EEU — USD 8 million,
  • from the third countries — USD 74 million.

Total purchase amount of the fixed assets is 5,8% of investments in fixed assets (capital investments) from all funding sources in the Kyrgyz Republic.

The total purchase volume of raw materials and supplies amounted to USD 216.8 million. The structure of purchases of raw materials and supplies:

  • 28.3 percent of all purchases are from the Russian Federation
  • 14.6 percent of all purchases are from the EEU country
  • 12.2 percent of purchases are from the third countries.

Accordingly, almost 45 percent of raw materials and supplies were purchased in the Kyrgyz Republic.

The most socially significant impact of the RKDF activities on the market of the Kyrgyz Republic is providing of employment.

The number of newly created jobs at the end of 2019 amounted to 3.4 thousand (748 are held by women).

The number of indirectly secured jobs after the project implementation amounted to 56.8 thousand.