Business Oppurtunities in Kazakhstan
Kazakhstan, located at the heart of Eurasia, is the ninth largest country in the world, with abundant natural resources and fertile agricultural land. As an oil-producing country Kazakhstan has seen its oil revenue decline, but there are signs that growth is slowly picking up. IMF’s growth forecast for 2017 is 2.5%. There are several large infrastructure projects that inject optimism into the forecast.
Mining and metallurgy are the most competitive and dynamic industries. Kazakhstan has enough copper, lead, zinc, iron ore, manganese and chrome and so-called rare metals to last for at least the next 50 years. As a result, there is demand for different types of machinery and equipment. The fact that the cost of electricity is substantially lower than in Russia, for example, stimulates development. It is not surprising that mining accounts for a third of the country’s exports.
Food and agriculture have a lot of potential, too. As much as 82% of Kazakhstan’s land area is rural or agricultural land. Hot summers and cold winters ensure diversity in agricultural production.
Kazakhstan has a relatively young population and education is a high priority. English is widely spoken. Kazakhstan’s biggest trading partners are currently Russia, China and Germany. The government gives financial support to local companies, especially in the technology sector, to improve their competitiveness, and the companies in turn look for foreign partners to develop their operations and sales. This opens up business opportunities for cooperation in different areas.
Are you interested in learning more about your own business opportunities in Kazakhstan? Seppo Hoffrén Consultancy can help you with market research. Contact us for more information.