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.”