Direct Investment Fund will be guarantor for foreign investors in implementation of large projects – Zhenis Kassymbek on execution of the Address
According to statistics from the National Bank, since 2005, the volume of foreign direct investment in Kazakhstan amounted to $265 billion. This, as noted in the Ministry for Investments and Development, makes up 70% of the total volume accounted for Central Asia.
We are the leaders here, approximately 50-55% for this period are accounted for the mining industry, 15% � in the processing industry. If in the beginning of the implementation of the Program for Industrial-Innovative Development, 8.5�9% of investments were annually processed, then by the end of 2017 this figure already reached 25%. The growth is significant, and we see that it is growing. The dynamics of physical volume and the share of investments in processing is increasing seriously, said Kassymbek.
The Minister for Investments and Development also noted that within the framework of the Head of State’s order to create a Direct Investment Fund in the non-oil sector, on the principle of co-investment with foreign investors, a working group was created together with government agencies and national holdings, and it is also planned to attract international experts.
This is an international practice, for a foreign investor to come to Kazakhstan, he needs a reliable partner in the person of some particular fund or company, where there is state participation, which will be a certain guarantor for foreign investments. This Fund will be created to co-finance large projects, he stressed.
According to the minister, the Fund will guarantee stability and confidence in the implementation of projects.
Suppose that a project costs some money, but 10-15% is asking for complicity from the state through this fund. For a foreign investor, this is a definite guarantee that the state guarantees stability, support for the implementation of these projects. These funds exist in Russia, there are similar funds in China, in many European countries, so there is global experience, and we will build on it, Kassymbek added.
Recall that the President of Kazakhstan Nursultan Nazarbayev in his annual Address to the People of Kazakhstan, Growing Welfare of Kazakh Citizens: Increase in Incomes and Quality of Life, ordered to consider the establishment of a Direct Investment Fund in the non-oil sector that will conduct its activities on the principle of co-investment with foreign investors.
Source: Prime Minister of the Republic of Kazakhstan