Starting 2019, the Republic of Kazakhstan is set to embark on a substantial expansion of its export. Every year, our country will expand its export nomenclature by 10 items on average simultaneously building up the volume of deliveries. The expected outcome of these efforts is a 50%-increase of national export by 2022 and a substantial increase in export of manufactured goods.
The geographical range of shipments will be very extensive. In particular, railroad equipment will be delivered to Egypt, Azerbaijan and Uzbekistan, yellow phosphorus and potassium fertilizers to the United States, Germany, Poland, Czech Republic, ice cream – to Mongolia, water, meat and milk to Afghanistan, Singapore and China, motor vehicles – to Kyrgyzstan, fittings – to Tajikistan, cereals – to Tatarstan, safflower oil – to Japan.
Many of the commodities will be novel items for Kazakhstan’s export such as sodium cyanide and semolina which will be shipped to Russia, Kyrgyzstan, Uzbekistan, China, Europe and Iran, big bags – to Russia and Tajikistan, ammonium sulfate – to Russia, Kyrgyzstan and Tajikistan, chrome products and soft drinks – to Japan, Great Britain, Turkey, Afghanistan, Turkmenistan and Belarus. Construction services, synthetic and microfiber materials, cast-iron products and autobuses will be exported to the CIS countries.
Furthermore, in order to introduce new measures of service support, Kazakhstan plans in 2019 to open trade missions in Central-Asian countries, China, Turkey and United Arab Emirates. Experience of other countries shows that opening of trade missions in traditional markets allows tripling export volume in a year.
Expansion of Kazakhstan’s export creates favorable conditions for intensification of Kazakh-Romanian trade and bilateral cooperation. In this regard, I would like to mention that our trade is already substantial and has reached USD 1.534 bln. in the 11 months of 2018. By comparison, in 2017, the volume of bilateral trade amounted to USD 992 mln. Nevertheless, it is clear that the potential of our trade and economic cooperation is much more extensive.
In particular, one of the issues to be addressed is the predominance of crude oil in Kazakh export to Romania which constitutes up to 97% of the total. Organization of bilateral business-forums and economic missions has contributed to improvement of the situation, but much remains to be done. I am confident that Kazakh exporters have a lot to offer to Romanian enterprises and consumers and urge them to find more about our export potential at the Kazakhstan Exporters Portal at www.export.gov.kz. High quality natural food products, including meat, cereals, semi-finished and canned goods, fertilizers, textile goods and construction materials, glassware, machines, equipment and various industrial products are just some of the export merchandize that have high market potential in Romania.
Another important facet of our economic interaction is investment cooperation, which demonstrates a steady positive trend. As a relevant indicator of mutual interest of Kazakh and Romanian business circles, I would like to emphasize the presence of more than 40 Romanian-capital enterprises in the Kazakhstan market.
Taking into account key priorities of Kazakhstan’s economic development, I would like to invite Romanian companies to explore the opportunities offered in the following sectors:
– IT and innovation technologies. This is the core national priority underpinned by inauguration of the Astana International IT-Startup Hub on November 5, 2018. Its chief objective will be to promote the ecosystem of innovations and hi-tech business of the country, transforming Kazakhstan into a focal point of digital and innovation solutions;
– agriculture – creation of joint ventures for processing and manufacture of agricultural goods, including meat, dairy and cereal industry;
– transit and transport potential – establishment of a regional transport and logistics hub in Kazakhstan, participation in large-scale infrastructure projects;
– tourism – exploration of the significant tourism potential of Kazakhstan and Romania.
The Embassy of Kazakhstan in Bucharest is ready to provide Romanian investors with a full range of services including information about priority sectors, potential partners and suppliers. All through the decision-taking process and beyond, investors will be accompanied and assisted by the one-stop-shop company “Kazakh Invest” as well as by regional authorities.
In the last few years, the Government of Kazakhstan has drastically improved investment climate and level of investment protection. As a result, Kazakhstan has become one of the top investment destinations that relies on rich subsoil, strategic geographic location, social and economic stability, advanced human capital and correct executive priorities. Another important advantage of starting a business in Kazakhstan is the access to the 180-million customers market of the Eurasian Economic Union.
The Embassy of Kazakhstan, in its turn, is prepared to continue its work for promotion and expansion of bilateral economic cooperation, with specific emphasis on diversification of export of manufactured goods and services and attraction of investments.
*Editor’s note: Detailed information about conditions and opportunities of investing in Kazakhstan is available at www.invest.gov.kz.