Kazakhstan eyes to attract foreign investment

By Kamila Aliyeva

Kazakhstan Global Investment Roundtable with the participation of more than 100 companies including transnational ones opened in Kazakh capital on December 5.

Addressing the event, Prime Minister of Kazakhstan Bakytzhan Sagintayev told investors which sectors of Kazakh economy are profitable for investment

“Our policy on developing high-tech production, renewing the basic sectors of the economy and the agro-industrial complex, where we plan to heavily invest in the framework of the Third Modernization of Kazakhstan gives great opportunities for investors. We continue to diversify the economy and invite you to metallurgy, refining, chemistry and mechanical engineering areas. Kazakhstan has a large number of projects in the development of copper, gold, rare and rare-earth metals, including lithium and vanadium, phosphate raw materials and much more. For the further development of the manufacturing industry, we are interested in investing in geological exploration, new technologies for the enrichment and processing of raw materials,” he said.

Sagintayev informed investors about large-scale modernization of the agro-industrial complex.

“Today, Kazakhstan is one of the world leaders in the production of wheat and flour. We are strengthening this advantage, but we are also carrying out structural reform of the agrarian sector, diversifying the acreage in accordance with market demand. Scientific and technical, technological re-equipment of the entire industry has been started, including the introduction of the latest developments in the field of fertilizers, bioadditives and selection. All this provides great opportunities for investment in the food industry,” he said.

The prime minister is also convinced that Kazakhstan is becoming an investment-attractive for the development of infrastructure, logistics, transport and related services.

“Over the past three years, we have conducted large-scale infrastructure construction and created a short and economically advantageous transport and logistics ‘shoulder’ for entering the key world markets. Our strategic goal is to make Kazakhstan a major transport and logistics hub in Central Asia. In the next two to three years, the government plans to increase transit transport up to two million containers and receive revenues from transit up to $5 billion. All transport and logistics infrastructure of Kazakhstan and our state program ‘Nurly Zhol’ are associated with the Chinese mega-projects ‘Economic belt of the Silk Road’ and ‘One belt, one way’. We invite you to invest in transport and logistics, to grow and earn with us,” he said.

In general, Sagintayev added, the government is open to proposals and new ideas of investors.

He also called on foreign investors to buy stakes in top state and national companies within the framework of Kazakhstan's privatization program.

“The second large-scale "wave" of privatization, which is taking place in Kazakhstan, offers great opportunities for investors. The government is implementing a policy of denationalizing the economy. And today more than 900 companies are being transferred to the competitive environment. The most attractive of them are the top 65 state and quasi-public sector companies, of which 57 are companies of national holding companies. I invite you to take part in privatization. And right now is the most profitable moment to do this,” the prime minister stated.

Earlier, Minister for Investment and Development of Kazakhstan Zhenis Kasymbek noted that following the roundtable a number of agreements worth $3.5 billion will be signed.

The agreements envisage investments in absolutely different spheres -- mining and metallurgical complex, agriculture, transport and logistics etc.

He stressed that 12-13 documents will be signed today, including the $800 million contract in the agricultural sector and the final contract for the construction of the Big Almaty Ring Road.

“There is also a large amount of agreements in the agricultural sphere between the regions and foreign companies. These are Iranian, Turkish companies and many others. There are also a number of Chinese industrial projects, which will also be signed,” Kasymbek said.

In the first half of 2017 of $10 billion was attracted into Kazakh economy, according to the minister.

It is also noted that taking into account amendments to the legislation on attracting investments and the establishment of a new national investment company Kazakh Invest, it is planned to increase the volume of investment next year.

“We expect that this year the growth of investments will be from 8 to 10 percent. We would like to keep these trends next year,” he concluded.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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