The largest international financial institution of the U.S. government is interested in expanding investment cooperation with Kazakhstan
This was reported during the negotiations organized by KAZAKH INVEST with the leadership of the U.S. International Development Finance Corporation (DFC) and the top-management of the AIFC, Kazakhstan Investment Development Fund (KIDF), Kazakh Tourism and the Embassy of the Republic of Kazakhstan to the USA. The main subject of negotiations was the prospects for cooperation in the field of financing investment projects in the Republic of Kazakhstan.
The Chairman of KAZAKH INVEST Baurzhan Sartbayev informed the participants about the three-tier system of investors' support in Kazakhstan, which includes foreign institutions of the Republic of Kazakhstan, central national level and local executive bodies. “KAZAKH INVEST plays an active role at all three levels. This has become possible largely thanks to the network of our foreign and regional representatives. Along with this, we have established close interaction with the industry associations and domestic entrepreneurs. 24/7 service support is available for active and potential investors, and today KAZAKH INVEST provides a full range of services to support investment projects - from initiative to implementation and post-investment stages,” – noted Baurzhan Sartbayev.
The Vice President Garrett Marquis, the Managing Director Eric Jones and the Director for International Project Finance Tara Blake participated in the negotiations on behalf of the DFC. The DFC representatives noted that the organization is interested in cooperation with Kazakhstan due to the country's high investment attractiveness, particularly in such sectors as infrastructure, energy and telecommunications. In the new format the DFC budget has been increased to $60 billion, and the range of instruments has been expanded, which now includes not only debt, but also equity financing. In addition, the organization provides political risk insurance services and technical development.
“Relations between the USA and Kazakhstan are characterized as an enhanced strategic partnership. The United States is one of the largest investors in the economy of Kazakhstan. Since 1992, total investment of American companies has exceeded $45 billion. In addition to the oil and gas sector, American companies demonstrate strong interest in implementing joint projects in agriculture, ICT and mechanical engineering. The interaction and long-term partnership between the countries resulted in establishment of more than 400 companies in Kazakhstan with participation of the American capital,” - noted Zhandos Temirgali, the Advisor to the Chairman of KAZAKH INVEST, who moderated the negotiations.
Notably, KAZAKH INVEST has been developing cooperation with DFC (previously withOPIC) since 2017. Thus, in 2018, the two organizations signed a memorandum on infrastructure investments. Joint events are being implemented, including seminars for the Kazakh financial institutions and entrepreneurs.
The Deputy CEO of AIFC and the CEO of the AIFC Business Connect James Martin informed about the main activities of the AIFC, which include assistance in attracting investments into the country's economy, creating an attractive investment environment in the financial services field, developing the local securities market and facilitating its integration with international capital markets. It is important to highlight that such American financial giants as NASDAQ and Goldman Sachs played the leading role in establishment of the AIFC. The AIFC, regulated by English law, is a platform for investment in the region’s assets and opportunities. Today, the AIFC platform comprises about 450 residents, including the American companies.
Public equity investments in projects from the priority industries of Kazakhstan’s economy made by KIDF were explained by its CEO Asset Abdygapparov. To date, the fund considers projects involving both sectoral and institutional investors, such as the DFC. KIDF partners with the Ministry of Foreign Affairs of the Republic of Kazakhstan and KAZAKH INVEST in searching and selecting of new investment projects for equity financing.
In addition, the Chairman of Kazakh Tourism Yerzhan Yerkinbayev informed the participants regarding the investment potential and opportunities of the tourism industry. Currently, the most attractive tourism sectors include ecotourism and ski mountain tourism. According to Yerzhan Yerkinbayev, the Turgen ski resort development project and a number of regional projects aimed at the development of ecotourism and related infrastructure have great prospects.
According to Rauan Tleulin, the Minister-Counselor of the Embassy of the Republic of Kazakhstan in the United States, considering the current crisis conditions, multinational companies have been reviewing international supply chains. This creates additional opportunities for Kazakhstan to develop not only the manufacturing sector, but also to establish and develop new transcontinental transport and logistics centers.
The parties emphasized strategic importance of the negotiations designed to launch productive cooperation between DFC and the Republic of Kazakhstan and significantly strengthen investment and economic relations between the countries. During the negotiations KAZAKH INVEST proposed to DFC specific investment projects in such sectors as energy, petrochemistry, agriculture, mining and metallurgy, healthcare, tourism as well as transportation and logistics infrastructure.
For reference: The U.S. International Development Finance Corporation (DFC) was established through the merger of Overseas Private Investment Corporation (OPIC) and Development Credit Authority (a former division of USAID). DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. DFC invests in various sectors globally, including energy, healthcare, infrastructure development, agriculture, innovation and financial services. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in the emerging markets DFC's work takes a Triple Aim approach focusing on impactful global development, advancing U.S. foreign policy, and generating returns for American taxpayers.
