Kazakhstan redirecting foreign investments to processing industries

ASTANA (TCA) — This year Kazakhstan will implement seven projects totaling 78 billion tenge (around $237 million) with the participation of anchor investors and transnational companies, such as JAC, Hikma, Carmeuse Group, Cremonini, Peugeot, Citroёn, IVECO, and Tenaris, in the pharmaceutical, chemical, agro-processing, mining, metallurgical, and construction industries, Kazakh Minister for Investment and Development Aset Isekeshev said on May 17 at a roundtable on improvement of the country’s investment climate, the official website of the Prime Minister of Kazakhstan reported.

Another 65 projects with participation of transnational companies are currently under consideration, he added.  

The minister said that over the past 11 years, direct foreign investments in Kazakhstan have amounted to $212 billion. “The industrialization program launched in 2010 has helped us change the investment structure in favor of the processing sector. Some 77 percent of all foreign investments in the processing sector since 2005 have come during the years of the program,” Isekeshev said.

Late in March, Minister of National Economy Yerbolat Dossayev said that Kazakhstan will drastically reform its approach to attracting investment.

“When oil prices were 90-100 dollars per barrel, we were very attractive. Today we are looking for new approaches and ways to attract investments as part of the country’s industrialization and diversification of Kazakhstan’s economy,” Dossayev said then.

He said that the manufacturing industry and agriculture are priority areas for investment now. “Work will also be continued with transnational corporations, because today technology and competence comes from large companies, and therefore the work of [Kazakh] embassies and ambassadors will be primarily directed at working with them.”

Sergey Kwan