Key developments and challenges

Diversification of the economy away from excessive dependence on natural resources, including the modernisation of industry, is the crucial policy priority. To meet this aim it is essential to attract private sector investment into more sectors and although new investment legislation is in place, private enterprises continue to suffer from extensive regulatory burden and red tape.

Access to finance remains difficult, especially for small and medium-sized enterprises (SMEs), mainly because the financial system suffers from state dominance and directed lending. Attracting private commercial banks would improve liquidity and efficiency in the sector.

Recent foreign direct investment (FDI) into the power grid infrastructure is a welcome first step in ensuring the more consistent supply of electricity in the future. However, the authorities need to develop a comprehensive regulatory framework for the sector.