Enormous potential between Azerbaijan, Kazakhstan to boost investment co-op - vice minister
There is enormous potential to increase investment cooperation between Azerbaijan and Kazakhstan, Vice Minister of National Economy of Kazakhstan Bauyrzhan Kudaibergenov told Trend in an exclusive interview.
Cooperation between Kazakhstan and Azerbaijan
"From January through August of this year, bilateral trade turnover amounted to about $398 million and compared to the same period in 2022, there was an increase of 57.2 percent. First of all, the main export goods from Kazakhstan to Azerbaijan are: crude oil (with a share of 23.5 percent), raw aluminum (23 percent), petroleum products (22.9 percent), wheat (11.8 percent), rails (2.4 percent) etc.," he said.
Kudaibergenov noted that the main goods imported to Kazakhstan from Azerbaijan are: pipes, tubes and seamless profiles made of ferrous metals (with a share of 29.3 percent), cruise excursion ships, ferries and other means for transporting passengers (21.5 percent), water, including mineral and carbonated, with sugar (15.8 percent), coke and petroleum bitumen (4.7 percent), etc.
"It is worth noting that the Azerbaijani market is very attractive for the export of Kazakh processed goods. We are prepared to supply Azerbaijan with over 100 non-commodity commodity items worth approximately $300 million," the vice minister stated.
According to him, Kazakhstan President Kassym-Jomart Tokayev has often stated that cooperation in cargo transportation and transit of raw materials through Azerbaijan to Europe is becoming increasingly important for Kazakhstan.
"We recognize that both countries' advantageous location on important transcontinental transport and communication corridors provides us with an opportunity to expand our cooperation in this area. The Trans-Caspian International Transport Corridor or Middle Corridor, which can provide a short and cost-effective route for transporting goods to Europe and back, is becoming increasingly relevant in this context," Kudaibergenov added.
The vice minister noted that this multimodal transport corridor connects China and the EU through Central Asia, the Caucasus and Türkiye.
"Experts note that within the framework of the Trans-Caspian International Transport Route, there is a twofold increase in cargo transshipment through the seaports of Aktau and Kuryk. Thus, in 2022, about 1.673 million tons were handled (2021 – 840,000 tons). For 8 months of 2023, the volume of cargo transportation increased by 85 percent and amounted to 1.74 million tons (8 months of 2022 - 940,000 tons)," the vice minister said.
As Kudaibergenov noted, Kazakhstan will continue to actively work with its strategic partner, Azerbaijan, on mutually beneficial terms, taking into account long-term business relations and a focus on high results.
Kazakhstan's activity within Central Asia
The vice minister pointed out that Kazakhstan's companies invested about $67.8 million in Central Asian countries from January through June 2023.
As he noted, the most investments were made in Uzbekistan during this period - $31.7 million, followed by Kyrgyzstan ($27.4 million), Turkmenistan ($5.8 million), Tajikistan ($2.9 million).
"Unfortunately, the volume of investments decreased by 35.5 percent compared to the same period last year. Of course, external factors (geopolitical events, disruption of the logistics system, and high inflation) directly affect global flows of foreign direct investment," the vice minister said.
Kudaibergenov noted that a decline in investment activity is also observed around the world.
The vice minister also revealed attractive areas for Kazakh investors in Central Asian countries.
"As for the attractiveness for Kazakh investors, the main areas of mutual cooperation are light industry, transport, trade, agriculture, the financial sector, and other areas of the economy," he said.
I Forum of Interregional Cooperation of Kazakhstan and Kyrgyzstan
Kudaibergenov said that on September 22-23, 2023, the I Forum of Interregional Cooperation between Kazakhstan and Kyrgyzstan was held, initiated by the heads of state to create a new format of interaction between the two countries. This event was organized by the Kazakh side, which took place in Taraz, Zhambyl region.
"During the bilateral meetings, current topics of economic and social development, agro-industrial cooperation and water and energy cooperation were discussed. As a result of the forum, documents were signed providing for the supply of poultry meat, medical and confectionery products, complex microfertilizers, the provision of trade and intermediary services, as well as the implementation of initiatives in light industry and banking," he said.
As the vice minister noted, indeed, interaction in these areas will further strengthen cooperation and increase mutual trade and investment.
Turkic Investment Fund
"The Turkic Investment Fund is a financial institution for the economic integration of the Turkic world, aimed at financing micro, small and medium-sized enterprise projects that involve the creation and modernization of physical and digital infrastructure," Kudaibergenov said.
According to him, the creation of the Fund will make it possible to obtain financing for projects in priority sectors of the economy.
"Financing will be aimed especially at the development of SMEs, tourism, green economy, energy, agriculture, transport infrastructure, as well as strengthening trade and economic cooperation within and outside the region of the Organization of Turkic States," he added.
