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Kazakhstan Hosts Meeting of Council of Foreign Investors

Astana's Palace of Independence hosted the 36th meeting of the Foreign Investors Council. Kazakhstan's President Kassym-Jomart Tokayev and Prime Minister Olzhas Bektenov attended the event. This year's central theme was “Kazakhstan's New Investment Cycle.” The meeting discussed strategies for the new investment cycle and the development of Kazakhstan's attractiveness to investors. Citing data from the International Institute for Management Development (IMD), Tokayev emphasized that Kazakhstan has become one of the world's top 35 competitive countries. “We set ourselves a rather ambitious goal: to attract $150 billion of foreign direct investment by 2029. To realize this goal, the Investment Headquarters under the Government is endowed with expanded powers to solve emerging problems promptly,” said the president. Tokayev noted the merits of international oil companies, which have played an essential role in the country's development. “Foreign investors have invested capital and provided advanced technologies and highly skilled labor. Their investments have contributed to the growth of our energy industry: over the past 30 years, oil production has tripled. Thanks to this, Kazakhstan has become one of the five countries with the highest oil production growth rates. Speaking about the future, we set a goal to overcome the threshold of 100 million tons per year,” he said. The meeting focused on increasing investment attractiveness in the “clean energy” sector. Specific agreements were reached with world companies such as Total, Svevind, ACWA Power, and Masdar on realizing 43 GW of “green” projects in Kazakhstan. In addition, Kazakhstan has a vast potential for developing nuclear energy, so creating an international consortium to realize the NPP construction project is under consideration. Kazakhstan focuses on the work of the Astana International Financial Center to strengthen cooperation in the financial sector. Tokayev spoke of the importance of continuing the dialog between the Council members and government agencies to improve the country's investment climate and implement new initiatives and specific projects. The meeting also included Odile Renaud-Basso, President of the EBRD; Nurlan Dosymbekov, Deputy Prime Minister and Minister of National Economy; Zhang Daowei, Chairman of the Board of the Kazakh Association “Baibazarov” and the Yerstanign Investors; Nikolai Podguzov, chairman of the EDB; Andrew Deleoni, president of Alstom for Africa, the Middle East, and Central Asia; and Vadim Vorobyov, Chief Executive Officer of PJSC Lukoil. Established in 1998, the Council of Foreign Investors is a platform for foreign investors and the government of Kazakhstan to discuss strategic objectives and find solutions to improve the business climate. From the Kazakhstani side, the Council is attended by government members and heads of several national companies and development institutions. Foreign participants include representatives of major international corporations and organizations, underscoring the global interest in investing in Kazakhstan. Last year's 35th Plenary Meeting of the Foreign Investors Council was also chaired by President Tokayev. The main topic of the meeting was “Digital Transformation of the Economy.” At the time, Tokayev emphasized that digitalization is a tremendous technological breakthrough and opportunity. The growth of digitalization is already dramatically impacting economic development and changing the game's...

Kyrgyzstan Encourages German Investment in Raw Materials Extraction and Logistics

During a Kyrgyz-German Business Forum in Munich on October 10, Kyrgyzstan’s Chairman of the Cabinet of Ministers, Akylbek Japarov, stated that  following the first Kyrgyz-German Business Forum in Hamburg over a year ago, bilateral relations between the two countries had strengthened alongside a mutual interest in deepening cooperation. Japarov cited the fact that 180 joint Kyrgyz-German enterprises are currently engaged in Kyrgyzstan’s trade, industry, agriculture, tourism, energy, education, and services sectors, and to encourage further  German investment and  participation in implementing the government’s ambitious economic development plans, invited businesses to attend the ‘Day of German Economy in Kyrgyzstan.’ Scheduled for summer 2025, the event follows three 'Days of Kyrgyz Economy' in Hamburg, Frankfurt am Main, and Munich. Addressing the forum, Kyrgyz Minister of Economy and Commerce Daniyar Amangeldiev spoke of Kyrgyzstan's interest in developing cooperation with Germany on raw materials, with reference to the presence of  100 raw material deposits in Kyrgyzstan. In addition, he proposed that German investors participate in auctions to gain the right to use the subsoil in Kyrgyzstan and develop deposits using modern technologies that comply with environmental standards. The minister also touched upon the development of transport and logistics infrastructure and invited German companies to collaborate in the development of Kyrgyzstan's logistics system, stating: "Kyrgyzstan, located in the heart of Central Asia, is  ‘landlocked’. At the same time, the Great Silk Road — a trade route between West and East, North and South — has been passing through our country since ancient times. Therefore, our country should rightfully be called ‘land connecting,’”

Chinese Yuan to Become Kyrgyzstan’s Fifth Official Currency

The National Bank of the Kyrgyz Republic has announced that from next month the Chinese yuan will be an official currency of Kyrgyzstan. The yuan will join the Kyrgyz sum, the U.S. dollar, the euro, and the Russian ruble as official currencies, and an official exchange rate will be set. This measure aims to facilitate trade transactions and improve economic ties with China, one of Kyrgyzstan's largest trading partners. Introducing the yuan into official circulation will also help stabilize the country's financial system amid global economic uncertainty and allow entrepreneurs and financial institutions to manage their currency risks better. Notably, this initiative is being implemented against the backdrop of the yuan's growing influence in international settlements and its emergence as a global reserve currency. It also opens up new opportunities for Kyrgyzstan to participate in Chinese investment projects, which could positively impact the development of infrastructure and other key sectors of the economy. The change will take effect from September 1, 2024. The Chinese yuan exchange rate to the Kyrgyz sum will be calculated based on the cross rate with the U.S. dollar. This method is based on data from the agencies such as Reuters and Bloomberg.

Kazakhstan’s Unexploited Potential of Deep Processing of Coal

During the 5th Coal Industry Forum at the 14th International Mining and Metallurgical Congress on 6-7 June in Astana, Yerzhan Yelekeyev, Chairman of the Management Board of Kazakh Invest, presented new investment opportunities to produce high-tech goods from Kazakh coal. Substantiating his claim that the coal chemistry industry has the means to help grow Kazakhstan’s chemical industry and developments in manufacturing, Yelekeyev stated: "Having an extensive resource base and an advantageous geographical location, we must realize the potential of the coal chemical industry. In total, more than 400 different products can be obtained by processing coal, the cost of which is 20-25 times higher than the cost of coal itself. With the deep processing of coal, it is possible to obtain products that cost 25-30 times more than raw materials. Currently, the share of coal products in Kazakhstan is 3%; an indicator of the low level of development of coal chemistry. The price of coal is lower and more stable than that of gas and oil. According to preliminary calculations, the unused potential is  worth $25 billion.” In his presentation on "Partnership of Kazakhstan and the European Union in the field of critical minerals,” Timur Izbasarov, Deputy Director of the Strategy Department at Kazakh Invest, added that according to the World Bank, Kazakhstan has over 5,000 undiscovered deposits valued at over 46 trillion US dollars, and hence, significant opportunities for investment and cooperation in the field waiting to be untapped.  

Central Asia’s Untapped Potential: Key to Green Transition, Food Security, and Digital Economy Growth

Central Asia, with its rich history as a crossroads of civilizations and a gateway between East and West, finds itself at a crucial juncture in its economic development. The region is showing signs of moving towards becoming a more cohesive economic group, an evolution that could have far-reaching implications for renewable energy development, food security, global commerce and geopolitics. Central Asian states are better positioned than ever to capitalize on their strengths and resources to help the rest of the world deal with climate change, security challenges associated with geopolitical shifts and the ongoing digital transformation of the global economy. Realizing this vast potential will require continued focus, commitment and cooperation from the region’s leaders, as well as long-overdue support from Western leaders for some of the most progressive reforms Central Asia has seen in recent years. Green energy potential Rich in natural resources, Central Asia is fast becoming pivotal for the global green energy transition. Leveraging vast reserves of rare earth elements (REEs) and other crucial minerals combined with its significant potential for renewable energy production, the region is increasingly recognized as a key contributor to realizing a more sustainable future. Kazakhstan, one of the region's major players, boasts over 56 identified deposits of REEs, with reserves and resources surpassing 450,000 tons. These elements, including lithium and cobalt production, are crucial for battery technologies powering renewable energy applications. This positions Kazakhstan as a significant supplier for the burgeoning green technology industry. Kyrgyzstan and Tajikistan also show promise. Inventory reviews of REE-bearing mineral occurrences and delineation of areas-of-interest suggest these countries could be home to considerable undiscovered resources, further boosting their contribution to green energy transitions. In addition to its abundant natural resources, Central Asia is an ideal candidate for green hydrogen production. Uzbekistan, with  PowerChina and the Saudi company ACWA Power is constructing the  country's first green hydrogen plant. Meanwhile, Kyrgyzstan and Tajikistan, with their surplus hydropower electricity, are well-positioned for hydrogen production. Once again, however, Kazakhstan boasts the most ambitious goal: The country aims to produce two million tons of green hydrogen annually by 2032, marking its intent to become a major player in the global green hydrogen market. In 2022, it inked a $50 billion deal with the German energy grou Svevind to build one of the world's largest green hydrogen plants supplying Europe. Kazakhstan, which holds 13% of the world’s uranium reserves, also leads the pack in uranium mining, meeting a significant portion of annual demand from  Europe and the U.S.. As nuclear power plays a crucial role in the green energy transition, Kazakhstan's role is set to grow. The country is exploring new avenues to access the international market. On the other hand, Kyrgyzstan, Uzbekistan and Tajikistan are also known for their uranium deposits but they are currently prioritizing the remediation of past mining sites over active uranium production. This responsible approach underscores the region's commitment to sustainable development. Central Asia's commitment to a greener future extends beyond resource development.. Several states, including Kazakhstan, Turkmenistan,...