Expansion of German business in Kazakhstan

According to DKNews.kz, more than 1,100 companies with German capital already operate in Kazakhstan. Investments, production localization and technology transfer will become the next stage of cooperation.
Government officials, national companies, industrial groups and financial institutions from both countries gathered at the 17th meeting of the Kazakhstan-German Business Council for Strategic Cooperation in Berlin on August 27.
Siemens Energy, CLAAS KGaA, WILO, KNAUF, HMS Bergbau, Koch Solutions, Aurubis AG, Deutsche Bahn, KfW Bankengruppe and Deutsche Bank were among German participants.
As Deputy Foreign Minister of Kazakhstan Alibek Kuantyrov outlined, the central message of the Berlin talks was translating established business contacts into concrete long-term projects.
Industry, energy, mechanical engineering, transport infrastructure, green technologies, processing of raw materials and critical materials were included into potential areas.
Kazakhstan can develop local industrial capacity and integrate its companies into more sophisticated supply chains due to bringing production processes into the country.
Money was one of the most practical parts of the Berlin meeting.
Baiterek National Holding was ready to support investment projects in Kazakhstan. They also discussed government support measures, financing mechanisms and opportunities to attract long-term funding for projects involving German investors.
Another major focus was transport and logistics.
Germany and Kazakhstan discussed cooperation around the Trans-Caspian International Transport Route, or TITR, better known as the Middle Corridor.
The route is closely connected to Kazakhstan’s industrial ambitions. Establishment or expansion of German companies’ production and raw-material processing could give Kazakhstan access to European markets.
Also, German Investors could see the presentation of Alatau City during the Berlin meeting.
Nevertheless, they have not made specific investment commitments to Alatau City or signed agreements on individual projects.
The list of companies represented in Berlin is inspiring. Deutsche Bahn represented the transport sector, KfW Bankengruppe and Deutsche Bank represented major financial institutions.
However, technology, a production site, logistics infrastructure and long-term financing may be needed for a potential industrial project. It will make the projects easier to build around the entire investment cycle if companies from all these sectors are brought into one business dialogue.
During the visit, Alibek Kuantyrov met German State Minister for Europe Günter Krichbaum and Benjamin von Engelhardt, the Federal Chancellery’s representative for international economic policy.
He also had talks with Volker Treier, Member of the Executive Board of the Association of German Chambers of Industry and Commerce. Kuantyrov met Wolfgang Niedermark, Member of the Executive Board of the Federation of German Industries and Michael Harms of the German Eastern Business Association.
Now, it’s important to determine concrete parameters of these initiatives— an investment amount, production site, financing structure and implementation timetable.
At present, the two countries are already working on 23 joint investment projects.

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