Kazakhstan Intensifies Economic Boost Efforts
Kazakhstan Pushes Forward with Investment Drive to Boost Economy
Prime Minister Olzhas Bektenov convened a meeting last week to assess the progress of investments into Kazakhstan's economy, emphasizing the need for efficient government action to eliminate bureaucratic hurdles.
The meeting aimed at expediting the implementation of significant investment projects, addressing systemic issues that hamper the investment climate, and proposing ways to improve investment policies and create an inviting environment for capital influx.
The Ministry of Foreign Affairs and Kazakh Invest shared their assessments of investment activity, highlighting factors driving its dynamics. In 2021, 230 investment projects valued at 1.85 trillion tenge ($3.7 billion) commenced. The Investment Headquarters played a vital role in resolving 115 investor issues concerning projects worth more than $50 billion.
Kazakhstan is pursuing a strategy to attract investors to high-potential sectors, such as industries offering processing and export opportunities. Ten key companies have been identified for targeted negotiations based on regional strengths and economic needs. Talks are underway with leading Chinese agro-industrial firms, including the Fufeng Group's $350 million investment in a corn-based sodium glutamate facility in the Zhambyl Region, and Dalian Hesheng Holding Group's planned $650 million wheat processing complex in the Akmola Region.
The government plans to finalize agreements for 14 out of 20 strategic projects, worth $12 billion, by year's end. These projects span sectors including agriculture, energy, and construction materials. Construction will begin on 13 projects and project documentation will be developed for 16 others.
Prime Minister Bektenov expressed concern over project timeline delays, pressing regional authorities to engage more actively and tap their regions' economic potential to stimulate investment efforts. He urged better collaboration across all levels of local governance, including district officials.
The National Digital Investment Platform has been introduced to closely monitor investment projects, offering real-time data on 1,159 projects.
Kazakhstan's current investment strategy focuses on key industrial sectors such as metallurgy, petrochemicals, chemicals, energy, logistics, and digital infrastructure. Notable projects include a $978 million plant for processing high-carbon sulphide gold-bearing concentrates and a $1.5 billion polyethylene terephthalate plant. New economic zones, public-private partnerships, and enhanced financial support mechanisms are also part of the strategy aiming for industrial diversification and sustainable economic growth.
- To further boost the economy and attract more foreign investment, the Prime Minister is collaborating with the Ministry of Foreign Affairs and Kazakh Invest to address systemic issues that impede the investment climate, with a focus on finance and business sectors.
- As part of the investment drive, Kazakhstan is targeting high-potential sectors like agro-industry and digital infrastructure, aiming to drive project timelines forward and create an inviting business environment, thereby generating significant financial returns.
