ALMATY – President Kassym-Jomart Tokayev has instructed the government to develop a comprehensive action plan for a fundamental overhaul of Kazakhstan’s investment policy during his annual state-of-the-nation address on Sept. 8.
Photo credit: Akorda
Speaking at a recent meeting on economic development, Tokayev stressed that, despite growing global competition for capital, Kazakhstan must create the conditions for a new investment strategy.
Shifting from raw materials to innovation
While acknowledging that significant foreign direct investment continues to flow into the country’s extractive industries, he underlined that the priority now lies in boosting investment in manufacturing, high technologies and innovation-driven sectors.
“Despite intensifying global competition for capital, our country must continue to attract major investments. The current policy in this area cannot be called effective. A significant share of funds goes to raw materials, and while such investments are necessary, we must now focus on channeling resources into processing industries,” Tokayev stated.
He instructed the government to rethink its investment strategy and introduce additional incentives for investors working in advanced technologies. He highlighted the importance of supporting both state-led projects and large-scale private initiatives, stressing that cooperation should cover a broad spectrum from major corporations to small and medium-sized enterprises.
Strengthening investor relations and regional responsibility
Tokayev also called for a more coordinated and efficient system of investor relations, noting that the current framework is fragmented and prone to bureaucratic delays. He emphasized that responsibility for organizing investment attraction will rest entirely with the Prime Minister.
“There is no need to establish a new ministry. However, it is striking that none of our government agencies even have the word investment in their titles. This issue is divided among several institutions without clear coordination. I am giving the Prime Minister ten days to present concrete proposals to resolve this,” he said.
As part of broader reforms, President Tokayev also proposed introducing an Investment Attractiveness Index for the country’s regions. Developed under the Agency for Strategic Planning and Reforms, the index will evaluate the performance of local administrations in creating favorable conditions for investors.
Tokayev stressed that regional akims (governors) must bear direct responsibility for investment outcomes in their respective territories and suggested involving independent experts in designing the index.
Special Economic Zones (SEZs) were another focus of President Tokayev’s state-of-the-nation address. He noted that while intended to serve as catalysts for regional development, many SEZs are underperforming.
“Private companies, including foreign ones, can be engaged to manage special economic zones,” Tokayev said.
Linking investments to macroeconomic stability
The Kazakh President also addressed the role of social-entrepreneurial corporations (SPCs), which, according to him, often limit themselves to managing municipal assets and executing minor projects with minimal impact. Tokayev called on the government to transform SPCs into full-fledged development institutions capable of driving regional economic growth.
In addition, he linked successful investment attraction to macroeconomic stability, highlighting persistent inflation as a major challenge.
“The main problem today is high inflation, which erodes economic growth and household incomes. In our case, the situation has become particularly acute. The government and the National Bank must act as a single team to address this nationwide challenge. Now is not the time for internal competition,” he said.
