Kazakhstan Presents Diverse Investment Opportunities for South Africans
8 December 2023
Kazakhstan, despite its geographic distance from South Africa, has emerged as an attractive hub for investment and business prospects, as highlighted in the recent seminar titled ‘Kazakhstan: A Country of Opportunity’ held at the Al Ghazali College Community Hall in Erasmia, Pretoria. Co-organized by the Embassy of Kazakhstan, the Minara Chamber of Commerce, and the International Knowledge Foundation of South Africa, the seminar served as a platform to shed light on the various investment avenues available in this vast Central Asian nation.
The seminar was facilitated by Abdul Kader, who also familiarized the audience with Kazakhstan's extensive landscape and potential. Zaakir Ally, representing the Minara Chamber of Commerce, offered insights into the Chamber's objectives and the opportunities it seeks.
Ambassador Yerkin Akhinzhanov of Kazakhstan to South Africa emphasized Kazakhstan's rich, ancient history and its strategic positioning, spanning 2.7 million km2 with a population of 20 million. The country offers value to investors across a broad spectrum of sectors including mining, agriculture, transport, logistics, and tourism.
Akhinzhanov highlighted Kazakhstan’s pivotal role in the ancient Silk Road which is China's modern day Belt and Road Initiative (BRI). Kazakhstan seeks to unlock its transit and logistic potential, which accounts for over 80% of all continental traffic between China and Europe. Along with land terminals in Khorgos and Xian, Kazakhstan jointly operates sea terminals in Georgia’s Batumi and China’s Lianyungang ports. He pointed out that the BRI is changing trade patterns due to the costs of air and sea freight. The cost and transit time of rail transport is 50% lower than any other type of cargo.
Kazakhstan has, over the past 30 years, grown 9-fold, with GDP reaching $225.3 billion, or $11.5 thousand per capita. Since independence, the country has attracted almost $400 billion of foreign direct investments, gaining growing trust and interest from the global business community. The country is rich in mineral resources and is globally ranked number one by reserves of Chrome, two by Uranium, six by Zinc, seventh by Lead, and eighth by Manganese.
The Astana International Financial Centre plays a vital role as a regional hub for business and finance, connecting the economies of Central Asia, the Caucasus, the EAEU, Western and Central China, Mongolia, the Middle East, and Europe, explained Akhinzhanov. Since its establishment, more than 2100 companies from almost 80 countries started operations in the AIFC, attracting over $10 billion. Kazakhstan's aspirations to join BRICS reflect its robust trade ties, surpassing $50 billion with BRICS nations, exceeding South Africa's trade within the bloc.
Kazakhstan is making great strides in the information technology sector led by its Ministry of Digital Development and Aerospace Industry. The country provides wide-ranging opportunities for AI and IT start-ups in sectors including education, finance and agriculture.
Another viable sector is transport and logistics with the Trans-Caspian International Transport Route, or the Middle Corridor, becoming increasingly important. Over the last two decades Kazakhstan invested over $35 billion in its transport infrastructure. Akhinzhanov pointed out that the "country’s latest project is the rail link to the Iranian port of Bander-Abbas, next door to any African port. That is why Kazakhstan and South Africa have an excellent opportunity to boost bilateral trade and investment.”
Akhinzhanov underscored mutual interests in food security, signalling bolstering collaborations in fertilizer production, animal vaccines, and smart farming technologies, and adopting South African best practices. Kazakhstan’s standing as the 10th largest wheat producer, along with exports in barley, cotton, sunflower seeds, and rice, presents collaborative opportunities.
Additionally, Kazakhstan’s prospects in green energy and untapped tourism potential were highlighted. The nation boasts UNESCO World Heritage sites, diverse natural reserves, and a mix of geographical terrains, inviting exploration across various landscapes. The medical tourism industry further adds to its allure, offering quality services at competitive rates.
The seminar participants showed keen interest in educational opportunities, especially in higher education. Queries from women entrepreneurs and small business owners about business establishment procedures in Kazakhstan were met with assurance from Ambassador Akhinzhanov regarding facilitation and support from his team for South African businesses in Kazakhstan.
Kazakhstan stands as a land ripe with multifaceted investment prospects across diverse sectors. As economic ties deepen between Kazakhstan and South Africa, a mutually beneficial partnership seems imminent, fostering growth, innovation, and collaboration.