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.  

 

Government should help foreign companies to start manufacturing in Kazakhstan: Nazarbayev

http://www.bnews.kz/en/news/post/181395/

The government should help the foreign companies to start manufacturing in Kazakhstan, Kazakhstan President Nursultan Nazarbayev said delivering annual Address to the people of Kazakhstan during joint meeting of upper and lower houses of parliament today, BNews.kz correspondent reports.

“We need a special plan to gradually increase funding specific development of science and discovery, working for the country and bring it to the indicators of the developed countries,” President of the Republic of Kazakhstan said.

“It is necessary to establish joint projects with foreign companies and establish engineering centers,” Nursultan Nazarbayev said.

We need to encourage the foreign companies to create production and open maintenance and service companies here. So that, the government should help with resources and opportunities. I know that many large companies are willing to do it,” the President said. 

Zhambyl region implements 4 alternative energy projects worth USD 370 million

The Governor of Zhambyl region in Kazakhstan has announced the industrialization of four alternative energy projects. These projects are worth $370 million US dollars and focus on wind, hydro, and solar energy. Originally posted to Kazinform.kz on 10.10.2013:

http://www.kazinform.kz/eng/article/2596230

Zhambyl region is planning to carry out four projects in the field of alternative energy worth 370 million U.S. dollars, Governor of Zhambyl region Kanat Bozumbayev told a briefing in the Central Communications Service, Kazinform refers to primeminister.kz.

“Together with the private sector we are planning to implement four projects in the field of hydro, wind and solar energy with total capacity of 165 MW, and attract investment of approximately 370 million U.S. dollars,” Bozumbayev said.

It is planned to implement a project to build solar power plant with capacity of 50 MW in cooperation with the French and German investors. Now these projects are at different levels of performance. A business plan and a feasibility study has already been prepared.

“It is also planned to build a wind power station with capacity of 100 MW in Zhanatas town… The project will start after the final approval of tariffs for electricity generated by renewable energy sources,” the governor added.

Korday district has been successfully implementing the first investment project on solar energy in the history of Kazakhstan. Its capacity will be increased twofold next year.

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. 

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.”