Kazakh President Tokayev strengthens Investment Council powers to boost economic growth

Astana [Kazakhstan], December 6 : Kazakh President Kassym-Jomart Tokayev signed a landmark decree regarding measures to increase the efficiency of attracting investment into Kazakhstan's economy and accelerating economic growth, according to the Press Office of Kazakh President, Akorda press service, reported The Astana Times.
As per a press release by the Embassy of Kazakhstan, Kazakh President Tokayev signed the decree on Monday which outlines a comprehensive plan to empower the Investment Promotion Council (Investment Headquarters) with unprecedented authority.
According to the decree, the Investment Promotion Council will have the power to make binding decisions on both central and local government bodies and entities in the quasi-public sector, as per a release issued by the Embassy of Kazakhstan.
Additionally, the Council is empowered to develop temporary regulatory legal acts with the force of law, supplementing the government's efforts to create a conducive environment for investment, as reported by The Astana Times.
Moreover, the decree is a continuation of President Tokayev's economic policy as outlined in his state-of-the-nation address in September. This policy focuses on economic reforms, diversification, transparent tax policies, and equitable management practices, reported The Astana Times, citing Kazinform.
As per a press release by the Embassy of Kazakhstan, Tokayev has consistently demonstrated a proactive approach to attracting foreign investment and strengthening economic ties globally, the embassy release said.
He often engages in meetings with investors, both domestic and foreign, particularly during official visits abroad. A recent example of such diplomatic engagement occurred during the Conference of the Parties of the United Nations (UN) Framework Convention on Climate Change (COP28) in Dubai, the United Arab Emirates (UAE).
During his visit, Tokayev met with UAE Minister of Investment, Mohammed Al-Suwaidi and they both explored potential collaboration on joint projects between UAE's Presight AI Holding and Samruk-Kazyna Sovereign Wealth Fund, as well as strategic agreements involving QazaqGaz and Kazakhstan Temir Zholy focusing on artificial intelligence, The Astana Times reported.
Overall, on the sidelines of COP28, Kazakhstan signed 20 agreements with foreign companies worth USD 4.85 billion in green energy, infrastructure, and digitization. The enhancement of the investment policy reflects a key component of Tokayev's broader economic strategy, according to the release.
Following this, the author of the Finance.kz Telegram channel, Andrey Chebotarev praised President Tokayev's initiative and said, "With the need to modernize the energy system, pursue ambitious industrialization plans, and maintain strict monetary policy, Kazakhstan urgently requires these investments."
Moreover, the strengthened powers of the Investment Headquarters come as part of a broader strategy to enhance the investment climate in Kazakhstan.
As per a press release by the Embassy of Kazakhstan, recent amendments to the Tax Code and corresponding changes to the Government Decree on State Support for Investments have already provided investors with increased flexibility in choosing investment directions and boosting active participation in various sectors of the economy.
According to The Astana Times, the Investment Headquarters has been granted the authority to propose disciplinary actions, including the dismissal of heads of government bodies and quasi-public sector entities for non-compliance with its decisions. This enhanced oversight is intended to ensure strict investment initiative adherence and bolster investor confidence.
Chebotyrev further highlighted the need for appropriate legislative amendments, stating, "Investments come when investors have firm confidence in the successful completion of all plans and projects. Investments always mean new jobs, new knowledge, and new technologies. These are new opportunities for the citizens of the country."
As per a press release by the Embassy of Kazakhstan, according to the World Investment Report 2023, published by the UN Conference on Trade and Development, Kazakhstan saw an 83 per cent increase in net foreign direct investment (FDI) flows, reaching USD 6.1 billion, despite a sharp decrease in global investment flows in 2022.
Reportedly, Kazakhstan is leading in attracting FDI among post-Soviet Central Asian countries, securing a 61 per cent share, The Astana Times reported.
Chebotyrev pointed to data from the National Bank, showcasing a steady FDI influx into the Kazakh economy.
Specifically in 2021, the figure reached USD 23.8 billion, surpassing USD 28 billion in 2022 and registering USD 13.3 billion for the first half of 2023.
According to the expert, these investments are predominantly directed towards extracting raw materials, reported The Astana Times.
"Breaking down the numbers for 2022, the oil and gas sector secured the lion's share, attracting USD 9.6 billion in investments. Metallurgy followed with just over USD 4 billion, while the electricity sector received USD 635.6 million, and the food and beverage production sector obtained a more modest sum of USD 177.9 million," he said.
Moreover, President Tokayev's decree aimed to redirect investment into key sectors, particularly manufacturing, to ensure the sustainable development of the economy, the releasefrom the Embassy of Kazakhstan said.
Additionally, the measures outlined in the decree are expected to streamline decision-making processes, promote accountability, and create a more favourable investment environment for both domestic and foreign investors the release from the Embassy of Kazakhstan said.