BAKU, Azerbaijan, Oct. 23
By Nargiz Sadikhova - Trend:
Kazakhstan must invest in agriculture - Agro-Tech in particular, Marcia Elizabeth Favale, investment banker, an independent director of Development Bank of Kazakhstan (DBK) said, Trend reports citing DBK.
“In my opinion, agriculture is the new “black gold” of Kazakhstan. The nation has a huge territory, despite the harsh climate in some regions. We must invest in agriculture - but Agro-Tech in particular- agricultural machinery, agricultural products, technologies that are oriented towards the Kazakh reality. It is at the intersection of agriculture and technology. Let us remember Brazil, where they started investing in innovations in agriculture, became Global leaders in AgroTech and now Brazilian private companies have become therefore substantially valuable and profitable with enough money to buy public and private companies in America and in Europe,” Favale said.
Having noted that food security is very important, Favale added that it is important to think about sustainable agriculture driven by AgroTech and innovations.
“Many people in Kazakhstan have good education and experience. I am sure that if one puts money and time into developing technologies, one would become partners with global companies and the country would get a second wave of investment and smart growth,” she said.
Favale emphasized Kazakhstan’s future is bright because it is full of opportunities and evolving and the key is to mobilize the value chain in the country to maximize emerging opportunities.
“Kazakhstan even after the financial crisis, was able to keep its Investment Grade Rating and attract investments at a high level. When it comes to investing in a foreign country, many factors affect the investor’s final decision - the risk premium and political stability is one of the important considerations. Kazakhstan has a stable political situation and can control its public image. Foreign investors see Kazakhstan as a beachhead, a springboard into Central Asia given its stability and geopolitical importance in the region. From this point of view, Kazakhstan is very successful in terms of Nation Branding,” she said.
In her words, the socio-economic situation of a country is also an important consideration.
“Kazakhstan needs to be aware that today the internal interest in policies and procedures will be extremely important. Foreign investors and foreign audiences will pay attention to signs about how the local audience feels, how they are cared for, how they are involved in public affairs. This will affect the country's reputation and investor's desire to be here. Concerning what a country can do to improve its investment profile, at the same time, the best thing a country can do is to balance two things: minimization of risk and help investors reduce them. I do not exactly welcome guarantees. With some exceptions, guarantees make investors ignore risk management. Having domestic investors interested in long-term, sustainable development is very important and bodes well for foreign investments,” she said.
In Kazakhstan, Favale added, the country's weaknesses and vulnerability during the pandemic manifests itself in the supply chain, as was true globally, and exemplified for example in the shortage of medicines.
“One of the problems that people have talked about is the lack of doctors. It may be necessary to invest in medical workers and not just Medical Doctors but introduce certified medical personnel such as physician assistants, dental hygienists, registered nurses, optometrists, people who can work, and mobilize and connect virtually with specialists. Increasing domestic food production, import-substitution, will diminish food supply vulnerabilities and perhaps help stabilize prices. People living below the poverty line have the least access to medicines, and now food prices are rising,” she said.
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