Kazakhstan: the open door policy for investors in action
Nur-Sultan, February 22, 2022 – A working meeting of the Foreign Investors’ Council (FIC) was held online under the chairmanship of the President of Kazakhstan Kassym-Jomart Tokayev.
The event was attended by global CEOs of multinational companies, representatives of international economic and financial organizations. Opening the meeting, the President confirmed that the state would comply with all its international and domestic obligations and guarantees to partners and investors to the full extent. The efforts to create a favorable investment climate in Kazakhstan is a priority, and in this regard, he called on the members of the Council to be a part of this ongoing reforms.
The event presented the latest data showing the positive dynamics of the country's economic indicators. According to the results of last year, the Kazakhstan economy grew by 4%. The real sector has become the driver of stable growth. The volume of industrial output increased by 3.8%, including in the processing industry - by 5.5%. The key factor of positive changes was the high investment activity in the non-raw-material sectors.
In 2021, 44 major investment projects with foreign participation worth $3.6 billion were implemented and put into service. Over 7,500 jobs have been created. At the same time, the highest number of projects accounted for the mechanical engineering - 8 projects, renewable energy - 8, mining and metallurgy - 6, agro-industrial complex - 5.
Gross inflow of foreign direct investment for the first nine months of 2021 increased by almost 50% and reached $18.8 billion.
Kazakhstan has never allowed a default of its sovereign financial obligations and has always been a reliable economic partner. The investment climate in Kazakhstan remains favorable, which is confirmed by international rating agencies and organizations.
In 2021, the leading rating agencies Moody’s, Fitch and Standard & Poor’s highly assessed the Government’s efforts to stimulate the recovery of economic growth and confirmed the sovereign credit rating of Kazakhstan at the investment sound level with a “stable” outlook.
The Head of State noted the great contribution of the Council to the achievement of these indicators and urged investors to continue active mutually beneficial cooperation.
In turn, the members of the Council expressed confidence in the security and stability of the authorities of our country regarding foreign investment protection, fulfilling all the obligations, supported the ongoing reforms, and also voiced their own initiatives.
Thus, the Vice-President of the European Bank for Reconstruction and Development, Alain Pilloux proposed three key areas that would maximize the opportunities for recovery and improvement of the investment climate in Kazakhstan.
The first one is to increase the competitiveness of the private sector and diversify the economy by reforming state-owned enterprises, restructuring the Development Bank of Kazakhstan and Samruk-Kazyna with the introduction of improved corporate governance measures, international procurement rules, and further digitalization.
The second one is to accelerate Kazakhstan's transition to a green economy, carbon neutrality and resilience to the effects of climate change.
The third one is to promote the regional economic integration through the private sector by expanding access to employment opportunities and skills, improving access to finance, and reducing intra-regional inequalities.
David Livingston, City Group’s CEO for Europe, the Middle East and Africa, highlighted that the company remains loyal to Kazakhstan as a strategic and reliable partner.
“The country faces difficult challenges: maintaining the level of international investment in Kazakhstan will be rely on the fundamental rule of law, transparency and a set of principles of public administration. Our company's experience as a global financial institution serving clients in 160 countries has shown that strong and consistent emphasis on these provisions is crucial in establishing and maintaining investor confidence. As one of the largest foreign investors in the country, we’re positively portraying the history of Kazakhstan around the world by providing access to our network of institutional investors,” said D. Livingston.
James Johnson, Executive Vice President for Upstream at Chevron Corporation, briefed on the new ways to make the Kazakhstan’s energy sector more attractive. Appreciating Kazakhstan's commitment to guaranteeing the inviolability of existing contracts and recognizing the importance of competitive and predictable investment conditions, he stressed that all these steps would help Chevron continue to invest in Kazakhstan and contribute to the reduction of the carbon intensity of the oil and gas industry, developing new low-carbon products and solutions.
However, Cameco’s Chief Executive Officer and President Tim Gitzel said that “backed by more than 30 years of experience, Cameco remains a strong supporter of investing in Kazakhstan today and in the future. As a company that has been operating in Kazakhstan for almost three decades, we have recently witnessed the strength of character and resilience of the people of Kazakhstan. We know Kazakhstan as an investment-friendly jurisdiction with a stable investment climate, respect for treaty rights and a balanced and predictable tax regime.” He also stressed that Cameco is open to building up its cooperation with Kazatomprom through further investment in uranium production and processing in Kazakhstan. As a fuel for the production of safe, clean and reliable nuclear energy, uranium will be in increasing demand in the coming years as the world takes steps on further decarbonization and sustainable electrification.
https://www.gov.kz/memleket/entities/mfa/press/news/details/331633?lang=ru