Kazakhstan introducing new approaches to attracting investments

ASTANA (TCA) — During an April 27 presentation of the National Investment Strategy of Kazakh Invest, Kazakhstan’s Minister for Investment and Development Zhenis Kassymbek reported on new approaches to attracting investments and coordinating the activities of state bodies, the official website of the Prime Minister of Kazakhstan reported.

Kassymbek spoke about the ongoing work to reform the system for attracting investments. A National Investment Strategy will be developed by the end of June 2017. It will provide a comprehensive vision of how and where to attract investments, and identify clear coordination mechanisms for all government agencies and national companies.

The newly created national investment company Kazakh Invest will act as a single negotiator on behalf of the Government with target transnational corporations (TNCs) and large investors. Kassymbek noted that the company had been given a special status: its Board of Directors is headed by the Prime Minister of Kazakhstan.

Kassymbek mentioned the introduction of a short-term information-monitoring system — a follow-up which will unite all those responsible for working with investors. Investors will be able to monitor the progress of the provision of public services online.

The minister said that in recent years Kazakhstan has carried out a comprehensive work to create favorable conditions to implement investment activities.

“Over the past 5 years, we have seriously changed our legislation in accordance with OECD standards: simplified the migration and visa regime, licensing system, taxation, customs control,” Kassymbek said.

As a result of reforms, the competitiveness of the business environment has increased. Kazakhstan raised its position in the Doing Business rating of the World Bank from 41 to 35. In February this year, the OECD Council invited Kazakhstan to become an associated member of the OECD Investment Committee.

In 2016, the gross inflow of direct foreign investments into Kazakhstan increased by 40% compared to 2015, amounting to $20.6 billion.

The minister noted that the largest growth was observed in the mining and manufacturing industries, power supply and information technologies.

There is a tendency of increasing investments in the manufacturing industry.

The countries with the largest FDI in Kazakhstan are the Netherlands, the USA, Switzerland, France, China, Russia, Belgium, and Great Britain.

Sergey Kwan