Foreign investment in Kazakhstan’s economy on the decline

ASTANA (TCA) — Kazakhstan should keep the inflow of foreign investments in the manufacturing sector as investments are declining in other sectors of the country’s economy, Yerlan Khairov, the chairman of the Investment Committee of the Kazakh Ministry of Investment and Development, said at a media briefing on February 16, the official website of the Prime Minister of Kazakhstan reported.

He said that 2015 saw the global trend of capital flow from developing to developed markets, and that affected Kazakhstan as well. “We have seen reduced investments in the mining industry (about 64%), crude oil production (about 73%), construction and trade (about 50%),” he said, adding that against this background, the manufacturing sector performed quite well.

Khairov said that about 74 percent of all foreign investments in the manufacturing sector have come in the years of the state program of accelerated industrial and innovative development, initiated by the head of state.

In general, according to Khairov, over the last 10 years Kazakhstan has attracted investments totaling $215 billion, most of which invested in the mining sector.

Khairov also said that five new investment projects with the participation of transnational companies (TNC) will be implemented in 2016 in Kazakhstan.

“We are focusing on the work with multinational companies. About 30 companies are already operating in the country. We are actively working with 20 other companies,” he said.

The official also emphasized the importance of reinvestment. In his words, more than 60 percent of foreign direct investment in Kazakhstan comes as reinvestment. “Six [reinvestment] projects were implemented in 2015, with such companies as Danone, Lotte Group, BTM, Galaksi, and Coca-Cola opening new productions [in Kazakhstan],” he said.

Sergey Kwan

TCA