2009 Programs And Events
American Chamber of Commerce Serves International Businesses (04/16/2009)
There’s not a large American business community in Uzbekistan, but many of the businesses that are here are active in AmCham: The American Chamber of Commerce in Uzbekistan. As one of the only business service groups in the country, AmCham has become an important voice for the needs of international business in Uzbekistan.
American businesses make up only a small part of AmCham’s more than 80 members. Along with corporations with roots in the U.S. like UzTexaco and UzAIG, AmCham’s members include foreign-based multi-nationals like Siemens, CNH France and the Royal Bank of Scotland. Members span the business spectrum, from hedge funds to law firms, agricultural companies, hotels and Internet service providers. It includes individuals and international organizations like the UN Development Programme and the World Bank.
Each of them has a stake in strengthening business relationships and overcoming obstacles to doing business in the country, said Donald Nicholson II, the president of AmCham and manager of the Central Asian Small Enterprise Fund private equity firm. AmCham exists to help them do that.
“The business community needs a service organization. Any town or business in the U.S. has a business forum,” Nicholson said. “We ask: ‘What can we do for the business community?’ Our goal is to be of assistance to that community.”
AmCham Uzbekistan, a member of the U.S. Chamber of Commerce, has been operating in the country since 1997. The U.S. Chamber of Commerce also has affiliates in Tajikistan (which the leaders here assisted in opening), Kazakhstan and Kyrgyzstan, Nicholson said.
The U.S. Embassy in Tashkent works closely with AmCham to monitor the business climate and assist American businesses that express interest in working in Uzbekistan, said Robert McCutcheon, the Economic Advisor at the U.S. Embassy. He estimated that as much as a third of his time is devoted to issues that also pertain to AmCham, and that U.S. Ambassador Richard Norland and other senior U.S. Embassy officials regularly attend monthly AmCham gatherings.
“They are the most important group for American businesses here, without a doubt,” McCutcheon said. He directs American companies interested in doing business here to AmCham and to the U.S. State Department’s Country Commercial Guide, which provides an overview of the business climate in Uzbekistan. “AmCham is a great source of information. They have an ear out for what’s going on.”
AmCham holds monthly meetings and business mixers for its members and guests to mingle and build business relationships. They host speakers and sponsor special meetings, such as a 2008 event when representatives of the U.S. military came to Uzbekistan and wanted to meet potential suppliers of goods and services to support the mission in Afghanistan. AmCham worked with the U.S. Embassy to identify potential suppliers, then arranged a meeting for the military representatives to meet the business leaders.
AmCham also publishes the quarterly magazine “Business Connections,” with articles about its activities and topics related to the business environment, from new tax requirements to tips on selling Uzbekistan as a tourist destination.
The group has committees on Trade and Investment, Banking and Finance, Tax and Accounting, and Tourism. Some of its members sit on the board of the Kelajak Ilmi International School of Business, and AmCham leaders work to establish lines of communication between its members and the Government of Uzbekistan on key issues for the business community, Nicholson said.
One of the main issues is currency conversion, he said. Foreign companies at times have difficulty converting the Uzbek soum they receive into a foreign currency. Likewise, it can be difficult to convert enough of their foreign currencies into soum to pay their workers or purchase goods and services locally, he said.
“One of our goals is to have a dialogue with the Government and try to find suitable solutions,” Nicholson said. “If we can find solutions, the business community will grow. And if you have success stories, other businesses will come.”
Nicholson said he expected that warming relations between the governments of the U.S. and Uzbekistan would only help the climate for international business. He saw the recent agreement between the two governments to transport non-military cargo through the territory of Uzbekistan to Afghanistan as a clear sign of this warming, he said.
“If U.S.-Uzbek relations improve as we hope they will, the entire business community will improve,” he said, adding that leaders of the Government of Uzbekistan have repeatedly expressed the hope for greater foreign investment.
There are many things to attract foreign investment here, he said. Nicholson cited the reliable, well-educated workforce in Uzbekistan, ample natural resources and an economy that has been growing robustly even during the world economic downturn.
The Government of Uzbekistan has reported the nation’s gross domestic product grew about 9 percent in 2008, a number that was in line with the forecast of the European Bank for Reconstruction and Development and other independent organizations. The EBRD predicted a slowing in 2009 to about 5 percent growth, a rate still considered quite strong given the global economic climate.
“In terms of the financial crisis, Uzbekistan’s looking pretty good,” Nicholson said.
As the climate for economic growth and foreign investment change, AmCham will continue to be one of the main voices of the international business community, he said.