Kazakhstan, a nation with huge pure sources and impressive development targets, is positioning itself desiring to double its financial system to $450 billion by 2029 and is asking on the EU to spend money on new in-country value-added manufacturing.
Historically reliant on oil, gasoline, and mining, Kazakhstan is now dedicated to diversifying its financial system. Nazira Nurbayeva, former Deputy International Minister of Kazakhstan, advised Euractiv, “We’re on a transparent path of diversifying our pure resources-dependent financial system by creating non-resource industries.”
The main focus is on producing high-value items and providers, attracting capital to progressive tasks, and advancing sustainable financial development.
“The chemical substances, industrial manufacturing, meals processing business, tourism, and various power sectors present important potential,” stated Nurbayeva, including that “Chopping-edge industries like inexperienced hydrogen manufacturing, superior rare-earth metallic processing, the IT and fintech sector seize traders’ curiosity, [while] matching our enthusiasm for these sectors.”
New investments in value-added manufacturing are anticipated to set off expertise switch, enhancing productiveness throughout all sectors.
Human capital improvement and innovation
International direct investments (FDI) prolong past financial development, considerably contributing to Kazakhstan’s human capital improvement. By creating jobs and disseminating greatest administration practices, FDI ensures widespread workforce upscaling.
Small and medium-sized enterprises (SMEs) profit from FDI’s optimistic externalities, driving general financial well-being and development.
Moreover, FDI fosters a aggressive surroundings that stimulates innovation, enhancing the resilience and competitiveness of the Kazakhstani financial system.
Manufacturing sector advances
Kazakhstan’s proactive coverage measures are yielding tangible outcomes, significantly within the manufacturing sector. FDI on this sector has surged from 14% in 2019 to 23%, in 2023. Noteworthy investments span automobile and gear manufacturing, meals merchandise, and the chemical business.
Nonetheless, untapped potential stays in lots of new, together with the deep processing of grain, minerals, oil and gasoline, coal, and different pure sources and agricultural merchandise. Nurbayeva emphasises the necessity to discover these untapped avenues.
Balanced international coverage and diversification
Kazakhstan’s balanced international coverage goals to diversify funding sources, mitigating over-reliance on any single area. Regardless of world geopolitical tensions, the nation maintains strong worldwide financial cooperation.
Final yr witnessed a 3.5% improve in commerce turnover, reaching $41.4 billion, with Kazakh exports totalling $31 billion. EU investments in 2023 alone amounted to $10.4 billion, contributing to the cumulative investments which have steadily grown through the years.
Right now, greater than 3,000 European firms thrive inside Kazakhstan’s dynamic enterprise panorama.
EU collaboration – transport, power and meals safety
Nurbayeva highlighted to Euractiv three promising areas of collaboration between the EU and Kazakhstan, transport connectivity, together with the event of the Center Hall, power transition, together with inexperienced power and demanding minerals, and meals safety.
Kazakhstan’s strategic geographical location opens up thrilling alternatives in transportation and logistics. The Center Hall, passing by way of Kazakhstan, turns into a vital various route, making certain uninterrupted and quick supply of products between Asia and Europe.
Kazakhstan goals to attach the Trans-Caspian Worldwide Transport Route with the Trans-European transportation networks.
Nurbayeva emphasised their dedication: “We’re engaged on decreasing the transit time from the present 16-20 days to 10 days. Over the previous 15 years, we’ve invested over $35 billion in transit infrastructure, and with EU partnership, we attempt to additional develop the Center Hall to make sure dependable and secure connectivity between Asia and Europe.”
Inexperienced power transition
Kazakhstan is steadily transferring in the direction of fulfilling its dedication to realize carbon neutrality by 2060. Nurbayeva remarked, “By 2030, we intend to make a breakthrough in growing the share of renewable power sources within the power stability from the present 4% to fifteen%.”
UN estimates reveal immense potential: wind power capability in Kazakhstan reaches 1.8 trillion kWh per yr. Moreover, the nation enjoys as much as 3,000 sunny hours yearly, significantly within the South, the place photo voltaic radiation quantities to 1300-1800 kWh per sq. meter.
Worldwide gamers, together with Italian ENI, French Complete Vitality, German Svevind, Chinese language China Energy, Emirati Masdar, and Saudi ACWA Energy, categorical eager curiosity in creating renewable power sources inside Kazakhstan.
Uncooked supplies alternate for expertise
Kazakhstan stands as a world chief in mineral sources, the biggest exporter of uranium, and ranks among the many prime ten in copper manufacturing. Kazakh titanium, a provider to Boeing and Airbus, covers 11% of the worldwide market. The mining and metallurgy sectors contribute about 20% of nationwide exports.
To help the inexperienced transition, Kazakhstan seeks to concentrate on midstream industries inside the manufacturing chain. Talking about potential companions, Nurbayeva stated: “We search to collaborate on a ‘uncooked supplies in alternate for expertise’ foundation, integrating into the worldwide worth chain.”
Past expertise and mining, Kazakhstan’s huge land—200 million hectares—holds immense potential for meals safety by way of cultivation and pasture. Nurbayeva hopes the invigorated EU-Kazakhstan collaboration shouldn’t be solely strategic however transformative, able to leveraging transport, sustainable power, and useful resource alternate whereas charting a path for Kazakhstan in the direction of prosperity and resilience on the worldwide stage.
[By Nicole Verbeeck I Edited by Brian Maguire | Euractiv’s Advocacy Lab ]
