Kazakh President Kassym-Jomart Tokayev (pictured) spoke concerning the want for larger financial diversification and greener options within the economic system on the thirty third session of the Overseas Traders’ Council hosted June 10 by the Kazakh capital Nur-Sultan, reported the Akorda press service, writes Assel Satubaldina in Enterprise.President Tokayev and senior officers through the assembly. Picture credit score: Akorda press service
The session was attended by senior Kazakh officers, heads of enormous multinational corporations, heads of presidency companies and representatives of worldwide organizations.
The council that consists of heads of 37 massive transnational corporations and worldwide organizations in addition to heads of key ministries has served as an necessary platform for connecting main overseas buyers in Kazakhstan and the federal government and serving to the nation to enhance the funding local weather.
This 12 months’s assembly centered on boosting noncommodity exports in addition to post-crisis tax incentives, human capital improvement, subsoil use and digitization.
“Kazakhstan, as an financial system, can not rely solely on home funding, home demand and export of uncooked supplies. Our nation will proceed the coverage to make sure probably the most favorable atmosphere to draw high quality overseas investments. We’re decided to keep up our management within the area and within the Commonwealth of Unbiased States (CIS),” mentioned Tokayev in his opening remarks.
He pressured the necessity to develop exports of processed merchandise, which, as he described, is a assure in opposition to unstable costs for uncooked supplies, an indicator of the economic system’s capability to supply high quality demanded items and providers.
Over the previous 12 months, world commerce suffered from dramatic losses. Kazakhstan’s overseas commerce turnover was down 13 p.c final 12 months amounting to $85 billion.
Regardless of this downward pattern, Kazakhstan’s noncommodity exports confirmed a lesser lower of two.8 p.c to $15 billion and overseas direct investments made $18 billion.
Final 12 months noticed the implementation of 41 funding tasks price $1.6 billion and involving overseas buyers.
“As the worldwide economic system recovers, Kazakhstan can be on its path to financial restoration. Our authorities forecasts the expansion to be at the very least 3.5 p.c and we anticipate the potential for increased progress,” mentioned Tokayev. From L to R: Kazakh PM Askar Mamin, Deputy PM and Overseas Minister Mukhtar Tileuberdi and Minister of Commerce and Integration Bakhyt Sultanov. Picture credit score: Akorda press service.
Exports stay a precedence for the Kazakh economic system, mentioned Tokayev, noting that the utmost potential is but to be unlocked for Kazakhstan.
The goal for Central Asia’s largest economic system is $41 billion of noncommodity exports by 2025. To help this goal, Kazakhstan allotted almost $1.2 billion.
Tokayev agreed with the Asian Growth Financial institution proposal to digitize the export help system.
“Now we have to agree that digital transformation reduces commerce prices, particularly for small and medium-sized companies. The Ministry of Commerce (and Integration) and Digital Growth (Improvements and Aerospace Trade) ought to formulate proposals along with the Asian Growth Financial institution,” mentioned Tokayev.
Boosting agricultural exports
The members famous Kazakhstan may gain advantage from growing and selling agricultural exports. Huge pure sources permit the nation to be a world chief within the exports of agricultural merchandise, however extra may very well be achieved.
Ashok Lavasa, Vice-President for Non-public Sector Operations and Public-Non-public Partnerships on the Asian Growth Financial institution, mentioned that the sector might function a driver of financial progress. Ashok Lavasa from the ADB throughout a video convention. Picture credit score: Akorda press service
“The agribusiness sector is essential to enabling extra financial progress, job creation, and financial diversification. Whereas agribusiness has loved substantial authorities subsidies, this has but to result in substantive positive factors in productiveness. The sector’s competitiveness and entry to market-based financing with appropriate tenors needs to be enhanced,” he mentioned.
Larger railway connectivity
Throughout the session, Tokayev additionally spoke about the necessity to increase Kazakhstan’s railway system. In 2020, the quantity of transit rail transportation grew by 17 p.c.
5 worldwide railway corridors go by the territory of Kazakhstan, which provides a chance to the nation to capitalize on its strategic geographic location.
91 p.c of containers transported in 2020 by the territory of Kazakhstan accounted for the China-Europe-China route.
“We are able to absolutely say that Kazakhstan has actually turn into a key hyperlink in overland transportation between Asia and Europe. Kazakhstan is a crucial and dependable associate in implementing China’s Belt and Street venture,” mentioned Tokayev.
However the effectivity and high quality of transport and logistics providers needs to be improved, together with at Khorgos.
Greener applied sciences
Tokayev reaffirmed the nation’s dedication to introducing cleaner applied sciences and accelerating the efforts because the nation transitions to a inexperienced economic system.
Kazakhstan has nice alternatives on this space, based on Andy Baldwin, EY World Managing Companion – Consumer Service.
“Within the context of the inevitable decarbonization and reorientation of investments in «clear» applied sciences, Kazakhstan has a novel alternative to create and increase non-commodity exports. With the appropriate modeling and improvement technique, you may flip the adjustments going down on this planet to your benefit and be prepared for them as a way to stay aggressive within the coming a long time,” he mentioned. The assembly members. Picture credit score: Akorda press service
Paving a strategy to sustainable targets might assist Kazakhstan in its effort to spice up non commodity exports, based on Joerg Bongartz, Deutsche Financial institution CEO for Northern and Japanese Europe, which may very well be achieved by the implementation of the Environmental, Social and Governance (ESG) ideas.
“ESG ideas are key elements of long-term worth and enterprise resiliency, as they’re carried out within the technique and measured on long-term improvement. In the previous couple of years, buyers around the globe are more and more paying consideration not solely to the monetary and manufacturing efficiency of an organization but in addition to the extent to which its actions correspond to the ESG ideas,” mentioned Bongartz.
Final week, President Tokayev revised the nation’s goal – bringing the share of renewable power within the nation’s complete power grid to fifteen p.c by 2030 – as an alternative of the earlier ten p.c.
To realize this purpose, the nationwide laws needs to be modified, mentioned Eurasian Sources Group Chair Alexander Mashkevich. Exempting power-generating organizations that use renewable power sources and their direct customers from energy transmission providers funds may very well be an answer.
“This is not going to have a big affect on the ability transmission organizations and KEGOC (Kazakhstan’s main electrical energy operator), however it’s going to give a big increase to renewable power improvement. Sooner or later, given our nation’s wealth of renewable power sources (similar to wind and photo voltaic), clear power in varied varieties could turn into an export product of Kazakhstan, particularly as a part of the creation of a typical power market throughout the Eurasian Financial Union,” mentioned Mashkevich