Kazakhstan improves market dominance indicator by 5 positions in Global Competitiveness Report-ACP

Kazakhstan has improved its market dominance. It has advanced to 78th place in the Global Competitiveness Report from 83rd. Originally posted to BNews.kz on 05.02.2013:

http://www.bnews.kz/en/news/post/185240/

Kazakhstan improved market dominance indicator by five positions in Global Competitiveness Report, the Chairman of the Agency of the Republic of Kazakhstan for competition protection G.Orazbakov told during the enlarged panel session of the Agency under the chairmanship of the Deputy Prime Minister B.Sultanov.

“The international cooperation has been optimized. Kazakhstan improved market dominance indicator by five positions from 83 to 78 place in Global Competitiveness Report. However, the indicator on intensity of local competition fell by seven positions,” Galim Orazbakov noted.

In order to improve the position of the indicator “intensity of local competition” it is decided to improve procedures for determining the development of competition, which involves consideration of two indicators – the “intensity of the regional competition” and the level of monopolization of key sectors of the economy” at a meeting of the Government in January this year, official website of Strategy 2050 reported.

“However, in 2013 the Government supported the initiative of the ACP to develop the Common Procurement Law, which will be mandatory for all types of procurement, except for the state. This is due to the fact that in the procurement system of Kazakhstan there is fragmentation and lack of a unified approach,” G.Orazbakov told.  

 

Entrepreneurship development

In the Zhambyl region of Kazakhstan, an entrepreneur is breeding fish in his pond. The hope of these fish is to be sold to markets by next year. Originally posted to Kazakh TV on 15.10.2013:

http://www.kazakh-tv.kz/en/view/news_kazakhstan/page_31916_entrepreneurship-development

The head of the ‘Altyn Balyk’ farm Abdrakhym Kuanyshbayev raises fish in an artificial pond in Zhambyl region. The head of the farm constructed an artificial pond near the vineyard.

Askar KUANYSHBAYEV, HEAD OF FISH FARM:
– We started with the fact that we increased the small irrigation ditch. Then we put young fish in our pond and started to raise fish. We run a business in fish farm sector for over 4-5 years. 

As this is a profitable business it was decided to increase the pond. There is enough water, as it comes from underground. Abdrakhym went to China to learn how to do it.

Askar KUANYSHBAYEV, HEAD OF FISH FARM:
–  I have seen how they do it in China. They get tonnes of fish from one small pond. They have learned how to breed them. We will start next year hoping to get 40-50 tonnes of fish.

The farmer is planning to deliver dozens of tonnes of fish to the market as early as next year. Moreover he is preparing documents now for obtaining state subsidy for starting a new business.  

Over 90 percent of new enterprises in Kazakhstan recoup investments

Since 2010, 563 new enterprises have been launched in Kazakhstan. Out of these enterprises, 90 percent see a return from their investments. They have produced about $13 billion dollars worth of products. Originally posted to BNews.kz on 25.09.2013:

http://www.bnews.kz/en/news/post/160756/

Over 90 per cent of new enterprises constructed within the Industrialization Map in Kazakhstan managed to recoup the investments made in them, the Deputy Chairman of the Investment Committee of Kazakh Ministry of Industry and New Technologies Sergey Karplyuk said while speaking at the governmental conference call under the chairmanship of Prime Minister, the Minister of Industry and New Technologies Asset Issekeshev on Friday.

“Some 563 projects have been launched in the republic since 2010,Trend reports.

Over 90 per cent of them were launched through private investments. The new enterprises have produced about 2.1 trillion tenge worth of products (152.97 tenge = $1). This is as much as was spent on their implementation,” he said.

The Deputy Chairman said that some 446 (79 per cent) of 563 launched projects work in accordance to the plan and some 15 projects (three per cent) are problem projects.

According to him, the new plants produced about 615.7 billion tenge worth of products only within seven month of 2013. The share of Industrialization Map projects has increased from 5.6 per cent to 6 per cent in the industry and from 7.6 per cent to 9.4 per cent in processing industry compared to the same period of 2012.

However, some 15 (or 3 per cent) of 563 launched projects are problem projects. They were revealed in Aktobe, Almaty, Zhambyl, Karaganda, Kyzylorda, South Kazakhstan and Mangistau provinces of the country.

“Three per cent of problem projects is a normal practice for a market economy. Around 1,000 enterprises go bankrupt every day in the world,” Karplyuk said.

He said that basically, all these problem projects belong to the first wave, in other words, they were launched before the start of State Program of Forced Industrial-Innovative Development. 

Large and medium business made profit of over 130 billion tenge in Almaty

Large and medium businesses in Almaty have made a profit of 130 million tenge (about $850,000). There has benn growth of small, medium, and large businesses in Almaty that has contributed to the economy. Originally posted to BNews.kz on 17.09.2013:

Thus, the level of profitability made 10.3%. The share of the unprofitable enterprises, among total number of the reported made 38.4%, the message read.

Meanwhile, according to official statistics, the number of the registered legal entities also grows. For September 1, this year their quantity made 94,220 units and increased in comparison with similar date of last year by 6.1%, including 90,922 units numbering workers less than 50 people.

The number of acting legal entities made 42,920 among which small enterprises make 40,145 units. Meanwhile in Almaty 75,675 subjects of small business (legal entities) that is more for 5.9% are registered in comparison with the corresponding period of last year. 

Sales of domestic cars ups in Kazakhstan

Sales of cars in Kazakhstan has increased 85% so far in 2013. Cars manufactured by Azia Auto produced most of the cars in Kazakhstan including manufactures from Kia, Chevy, Skoda, and ZAZ. This is a positive sign of growth for Kazakhstan and the auto industry of Central Asia. Originally posted to Trend.az on 20.08.2013:

http://en.trend.az/regions/casia/kazakhstan/2180938.html

The sales of cars assembled in Kazakhstan increased by 85 percent to 17,804 in January – July 2013, Kazakhstan Today reported with the reference to Kazakhstan Auto Business Association.

The share of domestic production car hit 21 percent in car sales within the country in the reporting period.

The top three best sellers in this period were Chevrolet Cruze, ZAZ Chance, KIA Cerato new which gave 55.6 percent of all car sales in the country.

Among the budget cars (worth $10,000-15,000) ZAZ Chance ranked first. Its sales rose by 74.3 percent in the reporting period to 1,379 (15.5 percent of all domestic cars sales)

Chevrolet Aveo New was the best sold brand in the price range of $15,000-20,000 (643 sold cars or 7.2 percent of all domestic cars sales).

The sales of Chevrolet Cruze the price of which ranges between 20,000 and 25,000 increased by 108 percent to 1,903. The share of this brand in domestic cars sales rose by 108 percent.

The best sold car worth $25,000-$40,000 in the reporting period was Skoda Octavia (635 sold cars) which share in domestic cars sales hit 7.1 percent.

KIA Cadenza was the only car in the price range between $40,000 and $60,000. Some 50 cars of this brand were sold in Kazakhstan in the reporting period.

Kazakhstan produces only two premium class cars: SsangYong Chairman and KIA Quoris. The former brand sold 25 cars in January-July and the later brand sold 4 cars.

The share of domestic SUV hit 9.3 percent in all vehicle sales in Kazakhstan in the reporting period.

The sales of cheap Lada 4×4 SUV hit 46.5 percent of all domestic SUV sales in the reporting period (3,674 sold vehicles).

The sales of SsangYong New Actyon increased by 6.5 times and gave 9.3 percent of all domestic SUV sales (738 sold vehicles).

UK accountants helping to shape the new Kazakhstan ‘powerhouse’

With the visit by David Cameron to Kazakhstan in July, it has opened the opportunity for UK accountants to open trade and make Kazakhstan an investment and economic powerhouse. Originally posted to GT Global Trader on 08.07.2013:

http://www.gtglobaltrader.com/news/uk-accountants-helping-shape-new-kazakhstan-powerhouse

With the help of Britain’s financial expertise, Kazakhstan can become an international powerhouse and trading partner, believes a leading accountancy organisation.

Following the recent trade visit to the Central Asia country with Prime Minister David Cameron, the Association of Chartered Certified Accountants (ACCA) said the international focus of its UK finance professionals was a vital ingredient in helping Kazakhstan’s industries – oil, mining, pharmaceuticals to name a few – meet the country’s global ambitions.

ACCA said that over the long term, home-grown finance talent could continue the country’s growth.

Sarah Hathaway, head of ACCA UK, who was part of the trade delegation to Kazakhstan, said: “British businesses are already benefiting from closer trade links with Kazakhstan, but there is scope to go further.

“There is a need there for experienced finance professionals to boost Kazakh and UK companies doing business with each other. The international focus of UK finance expertise is essential for Kazakhstan to not only cement ties with UK businesses but to reach out on a more global scale.

“Having that complete finance knowledge in the board room will increase the levels of corporate governance and sends a clear signal to investors that Kazakhstan is not only open for business but that it has the finance experience supporting its industries. With growing adoption of IFRS there is arguably a greater need for rapidly developing markets to look to us for skills.”

Dominant

Trade and investment minister Lord Green said: “Kazakhstan is emerging as the dominant economy in central Asia and offers many opportunities for British businesses small and large across a wide variety of sectors, including in financial services.

“The first ever visit by a UK prime minister demonstrates our commitment to strengthen the trade and investment links between our two countries.”

The UK already has presence in the board rooms of Kazakhstan’s businesses. Nigel Stapleton, a qualified accountant and former CFO of Reed Elsevier is on the board of the Kazakhstan postal operator KazPost and chairs the audit committee; Chris Walton, former CFO of EasyJet, is on the board and chairs the audit committee of Kazakhstan State Railways; and Sir Richard Evans, former CEO of BAE Systems, is a non-executive director on the Board of Samruk-Kazyna, the $100bn Kazakhstan sovereign wealth fund.

In addition, top management of the fund now includes two British managing directors – Peter Howes who oversees corporate governance and risk, and Nick Malone who recently joined from SAP as chief information officer.

Peter Howes, managing director of Samruk-Kazyna, said: “Finance professionals from the UK are already providing their expertise to Kazakhstan’s growing economy. That trend says a lot about the UK’s accountancy profession as well as the prospects of Kazakhstan. The country is going places and has sought the expertise of overseas finance professionals to get it off to a flying start. It bodes well also for Kazakhstan’s global credentials as it looks to do business with other markets. International finance experience is essential to meet that aim.”

ACCA, which was the only accountancy representative body invited to join the trade visit, was joined on the PM’s delegation from the UK by representatives from Ernst & Young, BG Group, Rolls Royce, other business representatives and experts from UK universities.
Delegates met with the president, government ministers and representatives from Kazakh businesses to discuss how they could work together. The trade visit generated £700m of deals, and work is ongoing to further develop business deals and cement relations between the two countries in a more formal structure.

Benefit

Sarah Hathaway continued: “Investment projects between the UK and Kazakhstan will benefit both economies and in order to ensure we remain a competitive partner UK Trade and Investment is committed to building structured relationships in areas such as energy, education and infrastructure. ACCA is well-placed to be part of the future growth in the market.”

ACCA says that while the short-term ambitions of Kazakhstan can be met by accountancy talent from overseas, over the longer-term the Central Asian market can develop its own finance profession.

Sarah Hathaway concluded: “Looking to the future, Kazakhstan can nurture its own finance talent to emerge as complete finance professionals with a global business outlook, which is partly why ACCA was invited on this historic visit by UKTI. Our global experience, internationally recognised accountancy qualification and established presence in Kazakhstan means we are well-placed to support the country as it develops the next generation of finance talent.

“There are already 1,604 students pursuing the ACCA qualification in Kazakhstan and we are keen to ensure that number grows and forms the basis of the country’s future finance function.

“Tomorrow’s CFO’s can learn and benefit from working with the current crop of the world’s finance leaders and nurture links with their UK counterparts. As well as being a trading partner for UK plc, Kazakhstan can be a finance profession partner into the future as well.”

 

 

 
 

Kazakhstan Going Green to 2050

According to President Nazarbayev’s Kazakhstan 2050 Strategy, Kazakhstan will use renewable and alternative energy sources to create 50% of the electric capacity generated in Kazakhstan. This is just one component of Kazakhstan’s comprehensive initiative to transfer from one of the world’s premier hydrocarbon energy producers to a model “green” economy. In addition to green energy creation, Kazakhstan’s transition also focuses on water resource conservation, agriculture and waste management, and measures aimed at reducing carbon emissions. Kazakhstan will be the first CIS country to launch a cap and trade system to curb greenhouse gas emissions.

Environmental Protection Minister Nurlan Kapparov has stated that the total public and private costs to implement such sweeping programs will total an average of $3.2 billion a year until 2050 – approximately 1 percent of GDP. Major foreign investors including the European Bank for Reconstruction and Development, the International Financial Corporation, the World Bank and cooperative governments have already begun green partnerships in Kazakhstan. Despite these costs, the green initiative is expected to add 600,000 new jobs and has the potential to add up to 3 percent of GDP annually to Kazakhstan’s current economic growth.