President Kassym-Jomart Tokayev has sounded the alarm over slowing foreign direct investment (FDI) flows into Kazakhstan, urging the government to redouble its efforts to attract high-quality investments to keep pace with global trends.
Speaking on 28 January 2025 at the general meeting of his Government in Astana against the backdrop of a challenging economic environment and heightened international competition, President Tokayev emphasised the critical need for qualified investment in the country: “We must intensify the government’s work in the field of investment, otherwise, we risk falling behind in the face of these rapidly changing conditions.”
Data reveals a concerning decline in FDI. During the first nine months of 2024, Foreign Direct Investment reached $12.7 billion, a 36% decrease compared to the same period in 2023. This decline has been observed in a number of regions, including Aktobe, Almaty, Atyrau, East Kazakhstan, Jambyl, Pavlodar, North Kazakhstan regions, and the city of Almaty.
Locking in Leaner Investments:
Recognising the pressures on government budgets, President Tokayev proposed a proactive approach: “In light of the limited availability of budget funds, we must consider introducing an array of additional financial incentives for investors who are willing to commit to high-quality projects.” This policy aligns with President Tokayev’s broader vision of economic liberalisation. He called for the creation of a comprehensive ecosystem that fosters, supports, and safeguards investors at all levels – both domestically and internationally.
Mutual Benefits and Responsibilities:
Government support for business ventures should come with clear expectations. President Tokayev outlined: “Investors who receive government assistance must accept reasonable countermeasures, such as job retention, investment in modernization, and adherence to environmental regulations.”
President Tokayev’s impactful message signifies Kazakhstan’s commitment to creating a more attractive investment climate while simultaneously promoting responsible and sustainable development. The focus on attracting high-quality FDI is crucial for the country’s economic future.
Photo: Acorda
