Kazakhstan eager for business with China’s ‘Belt and Road Initiative’
Synergies with Nurly Zhol infrastructure programme expected to make implementation of initiative quicker than in other central Asian countries
Among countries in central Asia now turning their attention to the opportunities offered by China’s “Belt and Road (B&R) Initiative”, Kazakhstan has been notably fast out of the blocks.
The relevant authorities have been quick to seize on the possibilities, dispatching high-level delegations to introductory summits, initiating reforms to ease the way for international investors, and making it clear to all parties that the resource-rich country with a population of 18 million is open for business.
“The implementation of B&R-related plans is expected to be faster than in other participating countries due to substantial synergies with the Nurly Zhol [economic stimulus] programme announced by President Nursultan Nazarbayev,” says Dauren Tasmagambetov, head of the assets privatisation and restructuring department of Kazakhstan’s Samruk-Kazyna National Wealth Fund.
“The majority of Nurly Zhol projects may be considered as a part of a broader B&R framework, as they directly contribute to the improvement of the country’s infrastructure and EU-Asia transit potential.”
Since independence, he notes, Kazakhstan has taken steps to optimise the legal and regulatory environment for foreign investors, making it easier to do business. Special attention has been given to protecting minority rights, allowing exemptions from import customs duties for strategic projects, cutting corporate income tax, and making in-kind state grants for priority investments.
In principle, these grants - up to a maximum of 30 per cent of the total fixed-asset investment - can cover plots of land, buildings, machinery, equipment, computer hardware, control devices, and means of transport.
