Download 2013

Opportunities for investing in EBRD’s region:
Kazakhstan
Janet Heckman, Director for Kazakhstan
Taipei, 8 September 2015
Contents
Market snapshot
Economic landscape
Investment opportunities and business drivers
Priority sectors (focus on infrastructure, agribusiness and energy
efficiency/green economy)
• EBRD in Kazakhstan
• Contacts
•
•
•
•
2
Market snapshot (2014)
Kazakhstan – 2014 figures
Population
17.2 million
Labour force
9.1 million
GDP / per capita
USD 217.9 billion / USD 12,602
Exports value
USD 79.5 billion
Imports value
USD 41.3 billion
FDI
USD 23.9 billion
Average GDP Growth Rate (%)
2013: 6.0%; 2014: 4.3%; 2015: 1.5%
Average Inflation Rate
2013: 5.9%; 2014: 6.7%; 2015: 7.0%
Exchange rate (against USD)
2013: 152.2; 2014: 179.2; 2015: 205.0
Major Import Sources
Russia (33.4%); China (17.8%); Germany (5.6%);
USA (4.8%); Ukraine (2.9%); France (2.6%); S.
Korea (2.6%); Italy (2.5%); Turkey (2.5%);
Uzbekistan (2.5%);
3
Economic landscape
• Ranks 50th out of 144 countries in the World Economic Forum 20142015 Global Competitiveness report
• Ranks 77th out of 189 countries in terms of ease of doing business in
the World Bank Doing Business 2015 report
• Joined WTO in 2015
• Joined Eurasian Economic Union in 2014
• Foreign Investment Law adopted in 2014 includes:
 Exemption from customs duties; In-kind grants
 Free entry; free work permits
 Tax exemptions ; cashback on investments
 Stable legislation; strong protection of investor rights
4
10 reasons to invest in Kazakhstan
1.
Attractive investment climate
2.
Reform minded government
3.
Centrally located between Europe and Asia
4.
Infrastructure/logistics needs
5.
Oil, gas and mineral rich country
6.
Agribusiness potential: top 10 global wheat
producer
7.
Low taxes and strong investment incentives
8.
Educated workforce: 99% literacy rate
9.
Access to regional and global markets through Eurasian Economic
Union/ WTO membership
10. Government’s commitment to energy efficiency/green economy
5
Investment opportunities
Infrastructure
• Emerging economy presents a need for infrastructure investment in various
industries including transportation and energy.
• Kazakhstan’s geographical position makes it a natural crossroads for major transit
corridors from East to West, from North to South
• The transcontinental automobile road corridor “Western Europe-Western China”
passes through the territory of Kazakhstan. The corridor will allow to deliver freights
from China to Europe in 10 days
• Roadways – Total: 96,873 km; 86,581 km of hard surface roads
• Railways – Total: 15,341 km; 4,800 km of double-track lines; 4,100 km of electrified
tracks
• Waterways – Total: 4, 151 km
6
Investment opportunities
Agribusiness
•
Large and growing food and agriculture industry : 10th largest wheat
producer with c. 80% being high quality; #1 flour exporter in the world
•
FDI-driven import of expertise, particularly in the processing industries
•
Strong Government support towards the sector, in particular via
Agribusiness 2020 Program by provision of investment ad industrial
subsidies, tax exemptions, etc.
•
The sector benefits from natural compliance with global environmental
and food safety requirements – Kazakhstan has one of the lowest
levels of chemicals application in crop production
•
An ever increasing demand for food in major markets which are
geographically close to Kazakhstan (China, Central Asia, Russia)
7
Investment opportunities
Energy, renewables and natural resources
• Abundant renewable energy resources – hydro, wind, solar and others
• A strategic initiative called “Green Economy” to support development of
“green” projects, including renewable energy projects
• Encouraging policies backed by feed-in tariffs are expected to ensure an
increased share in the forms in coming years
• Government strategy to extend energy production from renewables (3%
in 2020, 10% in 2030, 50% in 2050)
• Key theme of the upcoming EXPO-2017 is Energy of the Future
• Natural resources : top 10 world producer of uranium, chrome, zinc,
coal and lead
8
EBRD in Kazakhstan (1)
Key EBRD figures
• The EBRD has invested in Kazakhstan with 196 projects and €6,723 million
investments signed as of July 2015.
• In 2014, EBRD invested €576 million for 19 projects in Kazakhstan
• Today, Kazakhstan is one the
biggest country of EBRD
operations
• In the resident offices in
Almaty and Astana and
satellite offices, EBRD
employs more than 50 staff
9
EBRD in Kazakhstan (2)
Portfolio Distribution
• The EBRD has financed various industries and directly provided
financing, both debt and equity with clients ranging from commercial
banks to municipalities and SMEs.
Product portfolio distribution
10%
Debt
Equity
90%
10
10
10
EBRD in Kazakhstan (3)
Capital mobilization
• EBRD has been instrumental in mobilizing funding from the sources in
addition to the €592 million invested. So, through July 2015 we have
mobilized an additional €337 million from sources including world class
financial institutions in Asia, Europe and North America.
11
EBRD in Kazakhstan (4)
Current Country Strategy
• Diversification and support for non-resource sector
- Regional development
- Agribusiness modernization
- Investment climate development
- Supply chain development
- SME financing/advisory
• Balancing role of state and market
- PPP legislation/projects
- Municipal development
- Capital market development
- Privatization of state companies
• Promoting low carbon growth and energy efficiency
- Tariff policy
- Renewables legislation
- Energy efficiency projects
12
Floor is open to questions
13
Contacts
Janet Heckman
Bakhtiyor Faiziev
Country Director
Principal Banker
Kazakhstan
Municipal and Environmental Infrastructure
Tel: +7 727 332 00 10
Tel: +7 727 332 00 03
Email: [email protected]
Email: [email protected]
Azamat Shamsiev
Tatyana Tyo, Senior Banker
Principal Banker, Agribusiness
Financial Institutions
Tel: +7 727 332 00 61
Tel: +7 727 332 00 02
Email: [email protected]
Email: [email protected]
Askar Namazbayev
Xeniya Rogan, Principal Banker
Senior Banker, Transport
Power and Energy
Tel: +7 727 332 00 22
Tel: +7 727 332 00 25
Email: [email protected]
Email: [email protected]
Atabek Nazirov, Senior Banker
Manufacturing and Services
Tel: +7 727 332 00 09
Emails: [email protected]