Kazakh-Hungarian Fund Marks New Stage in Economic Relations

The initial capitalisation of the Kazakh-Hungarian Direct Investment Fund totalled $40 million, according to an official announcement during the fund’s recent advisory board meeting in Astana, reported kazpravda.kz. The corresponding communique was signed by KazAgro Chairman of the Board Nurlybek Malelov and Hungarian Eximbank Deputy General Director Andras Puskas.

“The initial capitalisation of the Kazakh-Hungarian fund totalled $20 million from each side. The fund is planning to attract an additional $100 million from local and foreign investors needed for future projects. We will invest in Kazakh agricultural companies and the food industry, supporting production, processing and logistics,” said Malelov.

Kazakh Minister of Agriculture Asylzhan Mamytbekov noted the nation’s agricultural sector is becoming more attractive and competitive.

“The creation of the fund was an important step towards further development of Kazakh-Hungarian relations. It will also create a platform not only for technology transfer, but for the exchange of agricultural management practices we need to implement in our country,” he said.

He added investment volume in the agricultural sector amounted to 167 billion tenge (US$487 million) in 2015. Investment volume in food industry fixed assets increased 28 percent to 55.9 billion tenge (US$163 million).

“The ministry continues engaging multinational companies as strategic investors in accordance with Kazakhstan’s 100 Concrete Steps initiative. To date, such Chinese giants like Rifa Holding Group, Aytszyuy, CITIC Group and COFCO Group, as well as the Italian multinational company Inalca Eurasia, began their work processing meat, oil, grains and tomatoes. They will also promote Kazakh products for export,” said Mamytbekov.

Hungarian Ambassador Andras Barani indicated his country’s readiness to cooperate with Kazakhstan in various fields.

“I think the two countries have much more than just diplomatic relations. Firstly, we are related, friendly nations. Furthermore, we recently stepped into a new round of intergovernmental relations after the agreement on strategic partnership was signed. One year ago Hungarian Prime Minister Viktor Orban paid a visit to Kazakhstan, so now we can watch a very serious result of this visit, and this is the first agreement to turn previously-initiated proposals into reality. This fund is a very important tool to ensure that our trade and economic relations continue flourishing in the future. After all, Hungary and Kazakhstan have excellent political relations, so that for us, the diplomatic corps’ representatives, the main task is to build mutually-beneficial business cooperation on the stable political basis,” he said.

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