Transcript 2013
Opportunities for investing in EBRD’s region: Kazakhstan Janet Heckman, Director for Kazakhstan Taipei, 8 September 2015 Contents Market snapshot Economic landscape Investment opportunities and business drivers Priority sectors (focus on infrastructure, agribusiness and energy efficiency/green economy) • EBRD in Kazakhstan • Contacts • • • • 2 Market snapshot (2014) Kazakhstan – 2014 figures Population 17.2 million Labour force 9.1 million GDP / per capita USD 217.9 billion / USD 12,602 Exports value USD 79.5 billion Imports value USD 41.3 billion FDI USD 23.9 billion Average GDP Growth Rate (%) 2013: 6.0%; 2014: 4.3%; 2015: 1.5% Average Inflation Rate 2013: 5.9%; 2014: 6.7%; 2015: 7.0% Exchange rate (against USD) 2013: 152.2; 2014: 179.2; 2015: 205.0 Major Import Sources Russia (33.4%); China (17.8%); Germany (5.6%); USA (4.8%); Ukraine (2.9%); France (2.6%); S. Korea (2.6%); Italy (2.5%); Turkey (2.5%); Uzbekistan (2.5%); 3 Economic landscape • Ranks 50th out of 144 countries in the World Economic Forum 20142015 Global Competitiveness report • Ranks 77th out of 189 countries in terms of ease of doing business in the World Bank Doing Business 2015 report • Joined WTO in 2015 • Joined Eurasian Economic Union in 2014 • Foreign Investment Law adopted in 2014 includes: Exemption from customs duties; In-kind grants Free entry; free work permits Tax exemptions ; cashback on investments Stable legislation; strong protection of investor rights 4 10 reasons to invest in Kazakhstan 1. Attractive investment climate 2. Reform minded government 3. Centrally located between Europe and Asia 4. Infrastructure/logistics needs 5. Oil, gas and mineral rich country 6. Agribusiness potential: top 10 global wheat producer 7. Low taxes and strong investment incentives 8. Educated workforce: 99% literacy rate 9. Access to regional and global markets through Eurasian Economic Union/ WTO membership 10. Government’s commitment to energy efficiency/green economy 5 Investment opportunities Infrastructure • Emerging economy presents a need for infrastructure investment in various industries including transportation and energy. • Kazakhstan’s geographical position makes it a natural crossroads for major transit corridors from East to West, from North to South • The transcontinental automobile road corridor “Western Europe-Western China” passes through the territory of Kazakhstan. The corridor will allow to deliver freights from China to Europe in 10 days • Roadways – Total: 96,873 km; 86,581 km of hard surface roads • Railways – Total: 15,341 km; 4,800 km of double-track lines; 4,100 km of electrified tracks • Waterways – Total: 4, 151 km 6 Investment opportunities Agribusiness • Large and growing food and agriculture industry : 10th largest wheat producer with c. 80% being high quality; #1 flour exporter in the world • FDI-driven import of expertise, particularly in the processing industries • Strong Government support towards the sector, in particular via Agribusiness 2020 Program by provision of investment ad industrial subsidies, tax exemptions, etc. • The sector benefits from natural compliance with global environmental and food safety requirements – Kazakhstan has one of the lowest levels of chemicals application in crop production • An ever increasing demand for food in major markets which are geographically close to Kazakhstan (China, Central Asia, Russia) 7 Investment opportunities Energy, renewables and natural resources • Abundant renewable energy resources – hydro, wind, solar and others • A strategic initiative called “Green Economy” to support development of “green” projects, including renewable energy projects • Encouraging policies backed by feed-in tariffs are expected to ensure an increased share in the forms in coming years • Government strategy to extend energy production from renewables (3% in 2020, 10% in 2030, 50% in 2050) • Key theme of the upcoming EXPO-2017 is Energy of the Future • Natural resources : top 10 world producer of uranium, chrome, zinc, coal and lead 8 EBRD in Kazakhstan (1) Key EBRD figures • The EBRD has invested in Kazakhstan with 196 projects and €6,723 million investments signed as of July 2015. • In 2014, EBRD invested €576 million for 19 projects in Kazakhstan • Today, Kazakhstan is one the biggest country of EBRD operations • In the resident offices in Almaty and Astana and satellite offices, EBRD employs more than 50 staff 9 EBRD in Kazakhstan (2) Portfolio Distribution • The EBRD has financed various industries and directly provided financing, both debt and equity with clients ranging from commercial banks to municipalities and SMEs. Product portfolio distribution 10% Debt Equity 90% 10 10 10 EBRD in Kazakhstan (3) Capital mobilization • EBRD has been instrumental in mobilizing funding from the sources in addition to the €592 million invested. So, through July 2015 we have mobilized an additional €337 million from sources including world class financial institutions in Asia, Europe and North America. 11 EBRD in Kazakhstan (4) Current Country Strategy • Diversification and support for non-resource sector - Regional development - Agribusiness modernization - Investment climate development - Supply chain development - SME financing/advisory • Balancing role of state and market - PPP legislation/projects - Municipal development - Capital market development - Privatization of state companies • Promoting low carbon growth and energy efficiency - Tariff policy - Renewables legislation - Energy efficiency projects 12 Floor is open to questions 13 Contacts Janet Heckman Bakhtiyor Faiziev Country Director Principal Banker Kazakhstan Municipal and Environmental Infrastructure Tel: +7 727 332 00 10 Tel: +7 727 332 00 03 Email: [email protected] Email: [email protected] Azamat Shamsiev Tatyana Tyo, Senior Banker Principal Banker, Agribusiness Financial Institutions Tel: +7 727 332 00 61 Tel: +7 727 332 00 02 Email: [email protected] Email: [email protected] Askar Namazbayev Xeniya Rogan, Principal Banker Senior Banker, Transport Power and Energy Tel: +7 727 332 00 22 Tel: +7 727 332 00 25 Email: [email protected] Email: [email protected] Atabek Nazirov, Senior Banker Manufacturing and Services Tel: +7 727 332 00 09 Emails: [email protected]