Kazakhstan attracts more foreign investments to agribusiness each year – Kazakh Invest
For several recent years, the amount of foreign investments for non-raw materials sector of Kazakhstan has significantly increased. Thus, Kazakhstan was able to elevate the domestic production of agriproducts and expand the geography of supplies. The key changes of the foreign investments issues for the agribusiness of Kazakhstan was the topic of our interview with the Head of Kazakh Invest department, Arystan Galiev.
- What countries became the main investors of the agricultural sector of Kazakhstan in 2017? How the investments flow did change for 2-3 recent years?
By the end of 2017, the agricultural sector of Kazakhstan was invested by the EU and South-East Asia countries, and also by China and Iran. For 2-3 recent years, the amount of foreign investors increased. As for today, there are among others 10 large and 6 perspective projects of the information and monitoring system of “Follow-up” of Kazakh Invest to be implemented. I believe that it is stipulated by the reason that the government of the country continues actively modernizing the agribusiness and food industry of Kazakhstan. According to the approved program for appealing investments named “National investments strategy of Kazakh Republic”, one of the main focal point of it is to attract the direct foreign investments for the non-raw materials export-oriented sector of the economy. The agricultural sector and the food industry are of high priority and the government pays attention to their development, implementing such programs as “Business Road Map – 2020”, “Industrialization program 2015-2019”, “Agribusiness – 2020” and others. All these created more opportunities for the investments and spurs the inflow of foreign funds, technologies and researches in order to increase the effectiveness of the products export.
- What industries are the main among the foreign investments flows?
Above all I would mention that the 90% of all foreign investments come for crop production and livestock. For example, in Almaty oblast the construction of the high-technology meat processing plant “Empire Food” is almost finished. It would produce nearly 8 thsd tonnes of made-up meat products, conserves and sausages, herewith 70% of the products are planned to be exported. Moreover, there is a possibility for local farmers to bring the meat for processing to large processors.
The appearance of such projects is good news. However, as I think, it is necessary to support the encouraging of the investments for the infrastructure, i.g. the construction of the specialized and multi-function elevators, milk-reception points, greenhouses, etc. All these will spur the development of the livestock and crop production and the realization of the new investments projects. The active work is being conducted in this direction. For example, not long time ago we have been approached by the investors who were highly interested in construction of the innovative and effective greenhouses in Kazakhstan.
- Taking into account the climatic conditions of Kazakhstan, what oblasts are the most attractive for investments?
First of all, I would point that the Kazakh agriculture land amounts to more than 102.6 mln ha and almost all of it is suitable for crop cultivation and livestock. Last year, Almaty, North Kazakhstan and South Kazakhstan oblasts were the most attractive regions for investments. The choice of the investors is not random because these oblasts have the most suitable climate conditions and bordered with the neighboring the countries which makes them the potential sites for allocation of export-oriented productions of high quality goods.
- Are You expecting for the growth of foreign investments for the agribusiness of Kazakhstan in 2018? In what areas?
It is clear that the agricultural sector shows the steadiest increase of the foreign money flows. I believe that the current year is not to be an exception. For now, we actively perform the work to enhance the conditions and business-opportunities for the foreign investors who would be interested in realizing the projects in terms of agribusiness and food industry. The most interesting among them are the oilseeds growing and processing, milk production and processing, and meat processing and fodder production.
Kazakh Invest together with the World Bank developed the “National Investment Strategy for 2018-2022”. The work is being dedicated in three areas: improving the investment environment in Kazakhstan, the realization if the effective operational measures and development of new ways of attracting the investors, privatization and public-private partnership.
The National strategy determines the industries of high priority for the investments (agribusiness, engineering, chemicals and petrochemicals industry, infrastructure, mining and smelting complex, trade) and also 11 priority countries which amount to 80% of global investments (the USA, Russia, the UK, Germany, France, Italy, China, Japan, South Korea, Turkey, the United Arab Emirates).
By 2022, the gross FDI (foreign direct investment) inflows are to increase in 1.26 times; the ratio of gross FDI and GDP is to increase by 19% by 2022; the gross FDI oriented to evaluated the effectiveness are to increase in 1.5 times; the investments volume for the main capital of the non-raw materials sector is to grow in 1.46 times; the volume of the foreign investments for the main capital of the non-raw materials sector is to grow in 1.5 times.
Interviewed by Anna Lysenko, APK-Inform Agency
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