BAKU, Azerbaijan, July 20
By Nargiz Sadikhova - Trend:
Introduction of a ‘higher-value-added investments’ notion is being considered in Kazakhstan, Advisor to the Chairman of Kazakhstan’s KAZAKH INVEST National Company on Strategic Analysis at Zhandos Temirgali told Trend.
Talking current main priorities of KAZAKH INVEST for investments attraction amid COVID-19, he noted that this is a very serious issue which is being pondered on by all responsible governments.
“First of all, we are talking about the revision of economic development strategies, because all forecasts and goals of the past year and earlier are depreciated under current conditions. Investments are the most important driver of economic development. Kazakhstan pays much attention to direct foreign investment, because in addition to financial investments and job creation, investments also provide for introduction of latest technologies, exchange of experience and training of local specialists,” Temirgali said.
He also added that the human capital comes as a priority in the 21st century.
“Therefore, we are seriously thinking about introducing such a concept as ‘higher-value-added investments’ that create high-paying jobs in industries with high added value,” he said.
Temirgali emphasized that international organizations forecasts for 2020 and 2021 are far from optimistic.
“An even deeper recession awaits us, accompanied by a fall in the global investment level of at least 40 percent. Developing economies will have the most serious consequences. Only countries with a favorable investment climate, a sound investment policy and established institutions will succeed,” Temirgali said.
“At the same time, the state institutions and investment climate that were created in Kazakhstan over the past decades are capable of producing long-term results, softening the consequences of the crisis and ensuring a faster recovery in the post-crisis period,” he said.
Temirgali also noted that Kazakhstan has inherent investment advantages, such as geostrategic location, transport and logistics potential, rich natural resources base, international trade and investment agreements and access to major markets.
“All this has made it possible to attract about $350 billion of direct foreign investment to the economy over the years of independence,” Temirgali said.
He also added that the understanding exists that in order to retain and attract foreign investors a more flexible approach to agreements between the state and the investor is needed, as well as package proposals, in addition to the existing system of incentives, which includes various tax incentives and subsidies.
“These package proposals will include a detailed business plan, a land plot with turnkey infrastructure, government support measures and proposals for potential local partners. Moreover, for priority projects in the manufacturing industry, the government is ready to consider the issue of both debt and equity financing,” Temirgali said.
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