Kazakhstan improves position in international ratings

NUR-SULTAN (TCA) — The Government session on September 17, chaired by Prime Minister Askar Mamin, discussed measures to improve the position of Kazakhstan in the World Bank’s Doing Business ranking and other international ratings, the press service of the Prime Minister of Kazakhstan reported.

Minister of National Economy Ruslan Dalenov reported that in 2019 Doing Business ranking’s Ease of Doing Business, Kazakhstan is 28th out of 140 countries.

“We set the goal of entering the top twenty by 2025. Today, this is the level of countries such as Finland, Australia and Latvia,” said the minister of national economy.

In terms of the regions of Kazakhstan, according to the terms of doing business, the leaders are Almaty, Aktau and Aktobe.

Dalenov also said that the level of development of trade and transport infrastructure is measured by the World Bank LPI (Logistics Performance Index). The index helps countries identify challenges and opportunities in developing trade logistics.

“According to the results of 2018, Kazakhstan took 71st place in this rating. By 2025, the country needs to get into the top 40 countries. These are countries such as Israel, Iceland, Malaysia,” Dalenov said.

The Global Competitiveness Index is calculated by the World Economic Forum. The index measures the ability of countries to make effective use of available resources. In this rating, according to Dalenov, Kazakhstan at the end of 2018 took 59th place. By 2025, the country should enter the top 40. This is the level of countries such as Italy, Estonia, Chile.

“In the Global Competitiveness Index, a component that measures the effectiveness of customs clearance should be especially noted. According to this factor, Kazakhstan is in 64th place. By 2025, we need to enter the top 40. This is the level of such countries as Israel, the Czech Republic, and Chile,” said Dalenov.

According to Dalenov, sovereign credit ratings are the most significant factor for investors. These ratings are compiled by agencies such as Standard & Poor’s, Moody’s, and Fitch. In August of this year, these rating agencies affirmed their ratings (BBB- / Baa3 / BBB). At the same time, Moody’s raised its forecast from “stable” to “positive.”

“Today, the sovereign credit rating of Kazakhstan is included in the category of ‘investment’ assessment, but the risk level is characterized as ‘medium.’ By 2025, the country needs to move to the next level, to the category of low-risk countries. This is a level A credit rating. This group includes countries such as Chile, Japan, Poland,” said Dalenov.

To achieve this rating, the country needs to diversify its economic structure, improve the banking sector, and tighten the budget discipline.

At the meeting, Prime Minister Mamin instructed the Ministry of National Economy to submit to the Government the eighth package of amendments to improve business conditions by the end of October 2019. It provides for reforms to simplify important business processes for investors when starting enterprises and registering property, obtaining building permits and connecting to electricity supply systems.

“Akims (administration heads) of cities and regions need to intensify efforts to implement ongoing reforms and create favorable conditions for doing business in the regions, attracting investments, and developing infrastructure,” said the prime minister.

Sergey Kwan

TCA