News
01.08.2023

FOREIGN INVESTMENTS AND EXPORTS ARE THE MAIN DRIVERS OF GROWTH IN KAZAKHSTAN

Author of the article:

 

 

 

Iskaliyev Yerkhat Serikovich

MBA, DBA, PHD, IPMA, ID

Chairman of the Transport Logistics Subcommittee and transportation of NPP "Atameken"

 

Member of the Presidium of the Union of Transport Workers of Kazakhstan "KAZLOGISTIC"

 

Chairman of the Management Board of «SK-Pharmacy» LLP

 

Seniority:

  • • Leading, chief specialist of the department for work with investment institutions of the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan, Atyrau (1998-1999);
  • • Chief Specialist, Deputy Head of the Regional Department of Economics of the Atyrau Region of the Akimat of Atyrau Region, Atyrau (1999-2000);
  • • Deputy Head, Acting Head of the regional financial department of the akimat of Atyrau region, Atyrau (2000-2002);
  • • Director of the Finance Department of the Ministry of State Revenues of the Republic of Kazakhstan, Astana (2002);
  • • Deputy Director of the Department of Public Debt and Crediting of the Ministry of Finance of the Republic of Kazakhstan, Astana (2002-2003);
  • • Director of the Investment Policy and Project Financing Department of CJSC “National Company “Kazakhstan Temir Zholy”, Astana (2003);
  • • Managing Director of Development Bank of Kazakhstan JSC, Astana (2003-2006);
  • • Chairman of the Board of DBK-Leasing JSC, a subsidiary of the Development Bank of Kazakhstan Joint-Stock Company, Astana (2006-2008);
  • • President of Kaztemirtrans JSC, a subsidiary of NC Kazakhstan Temir Zholy JSC, Astana (2008-2009);
  • • Vice Minister of Industry and Trade, Ministry of Industry and Trade of the Republic of Kazakhstan, Astana (2009-2010);
  • • Advisor to the President of JSC National Company Kazakhstan Temir Zholy on logistics and investments, Astana (2010-2011);
  • • Vice-President of JSC “National Company “Kazakhstan Temir Zholy” for logistics, Astana (2011-2013);
  • • General Director, Member of the Presidium, Member of the Committee for Transport, Logistics and Communications of the National Chamber of the Republic of Kazakhstan, ALE "Union of Transport Workers of Kazakhstan" KAZLOGISTICS ", Astana (2013-2015);
  • • First Vice-President of OAO United Transport and Logistics Company, Moscow (2015-2016);
  • • Director of the Branch Directorate "Transport and Logistics" (NC KTZh and JSC "AIR Astana") of the National Welfare Fund "SAMRUK-KAZYNA", Astana (2016-2018);
  • • Chairman of the Transport Logistics Subcommittee of the Logistics and Transportation Committee of the National Chamber of Entrepreneurs "Atameken", Astana (2018-2020).

 Scientific titles, degrees, activities:

  • Ø Applicant for the degree candidate of economic sciences (Ph.D) in the specialty "Finance, money circulation and credit", thesis topic: "Leasing financing of industrial and innovative development of Kazakhstan";
  • Ø Scientific study of structured finance using leasing through the "Credit + Leasing" and "Equity + Leasing" models;
  • Ø Academic degree - Doctor of Business Administration.

FOREIGN INVESTMENTS AND EXPORTS ARE THE MAIN DRIVERS OF GROWTH IN KAZAKHSTAN

The head of state attaches particular importance to attracting direct investment to the country, noting the importance of building an effective system for their “landing”. Every possible effort should be made to improve the investment climate in Kazakhstan.

During the years of Independence, a lot of work has been done in the investment sphere in Kazakhstan. In the first decades of sovereignty, the republic actively accepted proposals from foreign investors to invest in new promising projects. During the formative years, Kazakhstan needed external support, and it was the influx of foreign investment that could contribute to the systematic development of the country's economy and, even to some extent, become a growth driver.

   An investor is like a child: he requires an individual approach. For him, special conditions should be created.

  Investment attractiveness consists of a combination of different factors. Usually they are divided into two: hard, that is, those that cannot be changed. This includes geographical location, natural resources, demographic potential. And the soft ones, which are subject to adjustments, include: legislation, taxation, relations between government and business.

  A favorable strategic position also plays an important role in this vein. The Great Silk Road once passed through the territory of Kazakhstan, because we are in the heart of the Eurasian continent, thereby providing ourselves with the role of a “land bridge”. Thus, our country is a new strategic place at the crossroads of Europe and Asia.

It should be noted that in recent years Kazakhstan has demonstrated a high investment potential, being a leader among the CIS, as much attention is paid to creating a favorable business climate for investors. This includes the reduction of administrative barriers, the simplification of procedures, and the improvement of customs and tax administration. Kazakhstan has made significant progress in attracting foreign investment, which has played an important role in the development of the economy of our country as a whole.

According to the Government of the Republic of Kazakhstan, in 2022, the gross inflow of foreign direct investment in Kazakhstan amounted to $28 billion, which is 17.7% more than in 2021. This is a record figure for the last 10 years.

The leaders in terms of investment in the republic were the Netherlands - $ 8.33 billion. Silver goes to the United States - $ 5.1 billion, and Switzerland closes the top three with a total figure of $ 2.8 billion. Among the regions, Atyrau region, Almaty and Astana. According to the data, the largest volume of investments was directed to the mining industry, manufacturing industry, as well as wholesale and retail.

As for the total amount of foreign direct investment in Kazakhstan over the years of independence, according to Kapital.kz, this figure exceeds $400 billion. At the same time, despite the global competition for investments, according to UNCTAD, almost half of the investments and announced "greenfiled" projects in the Central Asian region falls on Kazakhstan (46%), which confirms the country's sustainable regional leadership.

In the context of 32 developing countries of the world that do not have access to the sea, Kazakhstan took the 2nd place. Mongolia, Uzbekistan and Turkmenistan followed.

Today, Kazakhstan means new opportunities and huge potential for profitable investments. Our republic occupies a strategically important location, has a favorable environment for doing business, protection of the rights of investors and investment incentives.

In order to promote sustainable socio-economic development of Kazakhstan by attracting foreign investment in priority sectors of the economy and comprehensive support of investment projects, National Company Kazakh Invest JSC was established. The company occupies an important position as an operator in attracting investments, acting as a "single negotiator" on behalf of the government. Kazakh Invest works closely with business associations and local entrepreneurs.

COMPETITION FOR INVESTMENT

One of the main tasks the government is currently working on is attracting investments for the implementation of the industrialization program. Foreign investment should bring not only capital, but also business culture.

Over the past few years, due to the deterioration of the global economic climate, the world economy has experienced a reduction in foreign direct investment (FDI) flows. At the same time, in developing countries, the need to attract investment, diversify and structurally transform the economy is more acute than ever. Virtually all new industrial strategies carried out in the world depend to a large extent on attracting investment.

The demand for investment remains higher than ever, while the supply is shrinking. Because of this, the investment market is becoming increasingly complex and competitive.

Our main competitors are developing countries with large reserves of natural resources. Of course, in each industry we are talking about different countries. For example, in the mining industry, our competitors are Australia, Canada and some countries in South America.

Moreover, Uzbekistan is becoming a promising regional player. And this, in turn, contributes to the balanced development of Central Asia. The rapid development of Uzbekistan will ensure stable economic growth and regional connectivity. According to experts, our region of 70 million inhabitants will achieve much better results with a coordinated joint positioning on the global investment map.

However, according to KursivaMedia, Ernst & Young analysts conducted a study of the investment attractiveness of Central Asian states over the past three years, as a result of which Kazakhstan took first place in this rating.

It turned out that over three years the number of new investment projects in the Central Asian countries decreased by 2.5 times, and the volume of investment in such projects decreased by 4 times. The largest investors during this time were Russia, USA, China and Türkiye.

In Kazakhstan, despite the crisis, the gross inflow of foreign direct investment in 2021 increased by 38%, but did not reach the pre-pandemic level. In 2022, Kazakhstan has become more actively involved in the global struggle for investment capital. The consequences of the geopolitical crisis opened up new investment opportunities, as more than 1.4 thousand large foreign companies left Russia or suspended their activities. So, a number of firms moved to our territory.

The study of the investment climate in Kazakhstan and other countries of Central Asia was carried out by experts with the help of sociological surveys. After polling respondents about potential risks affecting the investment attractiveness of the Central Asian countries in 2022–2025, they named political instability (it was noted by 45% of respondents) against the backdrop of conflicts in neighboring states, a low level of digital regulation and information security (48%). Representatives of foreign companies are skeptical about the uncertainty of the Central Asian countries in tariff and trade policies, high volatility in the capital markets. Every third respondent says this.

What can Central Asian governments do to improve the investment climate and compete for global investment in the next three years?

Judging by the results of the surveys, the most important thing for investors is that the country has a fair and transparent legal system, and that the tax laws of states have a clear and predictable interpretation. No one wants to find themselves in a situation where the norms of the law are interpreted differently by various government agencies or suddenly change.

Investors also note that governments need to move away from strict bans on the arrival of foreign skilled labor and make their own investments in human resources. In competition for foreign investment, what level of digitalization a country has, whether it has a basic IT infrastructure, will also matter.

An important role in the competition for investments is also played by the synchronism of all key links - customs, tax and logistics. The competence of personnel, litigation, the banking sector and export culture should be systematically improved. All of them, like a cog in a Swiss watch, perform an important function - the accurate and uninterrupted operation of the entire mechanism for attracting foreign investment to the country.

Taking into account all the above factors, in order to level the global challenges in Kazakhstan, approaches have been developed at a systemic level to attract and increase investments, taking into account all the criteria of investors. It should be noted that today Kazakhstan has a fairly good reputation, showing good results, and a number of advantages as an investment object.

WHAT IS KAZAKHSTAN ATTRACTIVE FOR INVESTMENTS?

As we said earlier, Kazakhstan is quite attractive for foreign investors, and the republic's strategic location is far from the only advantage.

Kazakhstan has natural investment advantages: transit and logistics potential, rich resource base, international trade and investment agreements, and access to major world markets. Our country is unique in terms of the potential of a leader in various industries. In addition, over the years of independence, our country has done significant work to create a truly attractive investment climate.

The activities of the state today are focused on reducing the risk for investors, increasing the transparency and predictability of government policies. For an investor, such factors as the proximity of large sales markets, the availability of qualified personnel, infrastructure capabilities and ease of logistics come to the fore. An important signal for potential investors is the availability of digital services for administrative procedures, for example through online one-stop shops.

The investment climate and its components - business regulation, tax policy, currency regulation and others - are the minimum necessary environment.

Adhering to the principle of a "hearing state" and in order to increase the inflow of direct investment into the country, all procedures for potential partners are simplified. Namely, administrative barriers are being reduced, customs and tax administration are being improved, investment incentives are functioning and the rights of investors are being protected.

State support measures

According to the legislation, state support for direct investment consists in legislative guarantees for ensuring investment activities; establishing a system of benefits and preferences; the presence of a single state body authorized to represent Kazakhstan to investors; providing guarantees for covering political and regulatory risks in accordance with agreements concluded by the Government with international organizations and relevant regulatory legal acts of the Republic of Kazakhstan.

 Protecting the rights of investors

Attraction and effective use of foreign investments is one of the main directions of mutually beneficial trade and economic cooperation between Kazakhstan and other countries.

In order to protect the interests of investors, there are such special consultative and advisory bodies as the Council of Foreign Investors under the President of the Republic of Kazakhstan, the Council for Improving the Investment Climate, the Investment Headquarters chaired by the Prime Minister, within which investors' proposals are discussed and decisions are made on their problematic issues. In addition, the Prime Minister is an investment ombudsman, which emphasizes the importance for Kazakhstan of the issue of protecting the rights and legitimate interests of investors.

The investor is provided with full and unconditional protection of rights and interests, which is provided by the Constitution of the Republic of Kazakhstan, and other regulatory legal acts of the Republic of Kazakhstan, as well as international treaties ratified by the Republic of Kazakhstan.

Council of Foreign Investors under the President of the Republic of Kazakhstan;

• Coordinating Council chaired by the Prime Minister of the Republic of Kazakhstan;

• Council for Improving the Investment Climate - under the Government of the Republic of Kazakhstan;

• The Court of the International Financial Center "Astana" and the International Arbitration Center - the judicial system according to the principle of English law;

• Specialized Judicial Collegium of the Supreme Court and the Court of Astana to resolve investment disputes;

• Investment Ombudsman - Prime Minister of the Republic of Kazakhstan.

Investment Agreement

In Kazakhstan, targeted and targeted work is carried out with each investor using a wide range of state support measures. In particular, there is a mechanism of investment agreements that guarantees the stability of legislation for strategic projects.

A new tool for large investment projects is an investment agreement. As part of the execution of the instructions of the Head of State on further support for investors and the implementation of a strategic investment agreement, investors in Kazakhstan have the opportunity to directly conclude an investment agreement with the Government.

  • Reduction of tax liabilities up to 20%;
  • Stability of legislation (up to 25 years);
  • Reimbursement of up to 20% of the cost of construction and installation works and purchase of equipment;
  • Provision of additional preferences provided for by the Legislation of the Republic of Kazakhstan in agreement with the Government.

Favorable tax regime

General rate for taxes and social charges. Kazakhstan ranks 5th for tax policy in the IMD ranking.

Simplified procedures for starting a business:

  • 1 day to register a legal entity;
  • 3 days to register property;
  • 100 days to obtain building permits.

 Human capital

The President always focuses on the role of human capital as a basic component of state policy and a driver of post-crisis economic development. In this regard, Kazakhstan has performed relatively well in the Human Capital Index in recent years.

 31st place in the World Bank Human Capital Index-2018;

  • • Visa-free regime for citizens of more than 65 countries of the world, including all OECD countries;
  • • 128 higher education institutions, 8 of which were included in the list of the best universities in the world according to the QS Stars Development Road map for 2018;
  • • International Scholarship "Bolashak" - more than 10 thousand specialists have been trained in 100 best universities in the world.

     ATTRACTION OF GLOBAL PLAYERS

Attracting foreign direct investment has the strongest impact on Kazakhstan's emerging markets. The dynamics of investment activity, the volume of foreign capital inflow directly affect the solution of socio-economic problems associated with the growth of living standards of the population, as well as the country's competitiveness in the global arena. That is why the stimulation of this segment is carried out at the state level, especially in countries with developing economies. And attracting global players to the domestic market gives an enhanced effect. So why involve them?

Brandname

The issues of exporting national brands, along with the attractive investment policy of the state and maintaining the positive status of the country, are in the same dimension, since, being equal sides of the same coin, they are equivalent and interconnected.

The goal of any state in the context of globalization is to ensure the growth of the welfare of its citizens and the protection of national interests in the world community. An effective tool included in the arsenal of strategic approaches to determining the trajectory of development and prosperity of the country is the presence of a country branding policy, which helps to strengthen the image and reputation of the state in the eyes of the world and domestic public.

Today, the positive reputation of the country is becoming an object of close attention from investors who want to invest their capital in a stable economy, and also creates a springboard for the successful promotion of brands in foreign markets.

It is obvious that a country with an attractive image, stability, low risk, high potential of the domestic market, an effective system of support from the state, a stable tax base, low production costs, a high rate of return and a level of staff qualification forms a favorable investment climate for attracting investments. global players. And this, in turn, has a positive effect on the development and sustainability of the brand and raising its status at the global level.

SMART investments

Against the backdrop of growing interest in "smart" solutions in the startup industry, the concept of SMART investments has appeared. This is a logical continuation of the basic principles of investing, according to which the investor must make correct and effective investment decisions that meet precisely formulated needs.

In other words, a SMART investment is an infusion of financial and other resources into a project that it does not have enough to achieve its business goals.

Thus, there is an opportunity for the exchange of experience and knowledge, tools and methods for business development, assistance with access to the international market, as well as networking with global players.

INVESTMENTS IN THE PHARMACEUTICAL INDUSTRY OF KAZAKHSTAN

The domestic pharmaceutical market today is of great interest to international investors who are looking for new opportunities in emerging markets. Foreign investors should be offered to invest in specific projects, form ready-made package solutions, the President said.

Today in Kazakhstan there are a number of priority areas for development. One of them is pharmaceuticals. According to experts, Kazakhstan has the potential to double its capacity in the pharmaceutical industry.

One of the main drivers of full-cycle localization of production is the policy of import substitution consistently pursued by the country's leadership. The emphasis of this policy is on the creation of innovative industrial sectors, among which the pharmaceutical industry is one of the key ones.

The healthcare and pharmaceutical industries have great potential for further development. The presence of state support against the backdrop of growing demand for medicines, the introduction of new standards and laws that contribute to the modernization of industries are key prerequisites for increasing the growth of production capacities of Kazakhstani enterprises, which will reduce import dependence, as well as increase exports.

Recall, in his Address, the Head of State instructed to intensify cooperation with global pharmaceutical corporations, ensure the transfer of technologies and the latest developments, as well as increase the share of medicines and medical products of domestic production to 50% in 2025.

 

The instructions of the President are under the special control of the Ministry of Health of the Republic of Kazakhstan and the Single Distributor.

To implement the tasks set, the Comprehensive Plan for the Development of the Pharmaceutical Industry until 2025 was approved, the National Project "HEALTHY NATION" for 2021-2025 was developed, where one of the directions is the "Domestic pharmaceutical industry of Kazakhstan".

Over the past year, the industry has shown a positive trend. A noticeable development of the industry in Kazakhstan took place during the years of industrialization, along with the arrival of large foreign investors from Poland, Turkey, China, Russia and other countries.

Today, domestic manufacturers need to focus on the development of their industries with an emphasis on import substitution in terms of transferring advanced technologies, localizing the production of original, innovative medicines and increasing exports of finished products. At the same time, along with the production of finished products, it is necessary to develop and produce pharmaceutical components and substances.

In order to increase accessibility, reduce import dependence and ensure the financial sustainability of the healthcare system, the Code of the Republic of Kazakhstan "On the health of the people and the healthcare system" provides for a measure of state support for domestic production in the form of long-term contracts with domestic manufacturers or customers of contract manufacturing medicines located in Kazakhstan for a period of up to 10 years.

This norm allows the development of own development of medicines, as well as the transfer of innovative technologies for the domestic production of medicines and the production of original drugs in the territory of the Republic of Kazakhstan.

THE ROLE OF A SINGLE DISTRIBUTOR

The issues of increasing the share of own pharmaceutical production in the country up to 50% are under the special control of the Government of the Republic of Kazakhstan and the Single Distributor continues to expand favorable conditions to stimulate the development of the industry, develop mechanisms to support domestic production through a single distribution system. Systematic and comprehensive work has been done in recent years.

Contract manufacturing of medicines

An important priority in the activities of the Single Distributor is to attract investment in innovative pharmaceutical products within the framework of contract manufacturing in the territory of the Republic of Kazakhstan.

The use of contract manufacturers in the pharmaceutical industry has been growing for several decades in an effort to reduce costs, reduce in-house capacity and expand into new markets.

 

The mechanism of contract manufacturing is as follows: a foreign company manufactures medicines on a contract basis at the production facilities of a domestic agent. The scheme was developed with the aim of supporting domestic producers and simplifying the procedures for entering the market of original and innovative medicines, since the scheme allows BIGPHARMA brands to enter the market of Kazakhstan.

. Contract manufacturing makes it possible to "marry" domestic manufacturers with global BigPharma players.

A single distributor systematically studies the best practices in the procurement and logistics of drugs from global players for its implementation in the domestic market. The issue of localizing the production of medicines and medical devices of BigPharma players on the basis of Kazakhstani manufacturers with the possibility of exporting to the countries of the EAEU and Central Asia is being worked out.

Framework cooperation agreements have already been signed with global pharmaceutical companies such as F. Hoffmann-La Roche Ltd, Novo Nordisk and AstraZeneca UK LTD. Work is underway to sign an agreement on cooperation and readiness for localization with Bayer AG (Germany), Takeda Pharmaceutical (Japan) and Novartis (Switzerland). Along with this, cooperation with South Korean companies is being actively developed.

  As part of the visit of the head of state to the United States, following the results of working out a single distributor, Pfizer and KazakhInvest signed an agreement on the localization of production in Kazakhstan of a vaccine to protect children and adults from pneumococcal infection.

Contract manufacturing of medical equipment

The sphere of production of medical equipment in the country also remains open for investment, including through the conclusion of long-term contracts with domestic manufacturers. Such projects will receive full support from the state.

To date, a number of meetings have been held with large companies to exchange experience in the field of the latest technologies: the German industrial association of optical, medical and mechatronic technologies SPECTARIS, the Dutch manufacturer of medical equipment Philips, the Korean global orthopedic company specializing in the production of high-quality products Corentec, the Kazakhstani service department LLP "BARK Technology" and others.

The issues of localization / contract manufacturing with major global manufacturers are being actively worked out. Companies such as Canon, Philips, General Electric, Samsung Medison, Mindray and others expressed their interest in localizing production. Work is also underway with other vendors, manufacturers of medical equipment, such as Lowenstain Medical, Ackerman, Atom Medical and others, who are also exploring the possibility of localization in Kazakhstan.

In addition, in 2022, a trip was made to the Republic of Korea, where the experience of creating medical-pharmaceutical and instrument-making clusters was studied. As a result, 5 memorandums were signed on the location of production sites in Kazakhstan - the latest developments in the field of pharmaceuticals and medical equipment between: JW Pharmaceutical and Ordamed JSC, Samsung Medison and Ordamed JSC, GENORAY and Ordamed JSC, DOLCE LLP » and MEDICAL PARTNERS KOREA LTD, Aktyubrentgen JSC and DRTECH.

С АО «Актюбрентген» прорабатывается вопрос локализации производства на территории Казахстана продукции таких вендоров, как Shenzhen Mindray Bio-Medical Electronics Co., Ltd (КНР); IBIS (Италия).

The issue of localization of production in the territory of Kazakhstan of products of such vendors as Shenzhen Mindray Bio-Medical Electronics Co., Ltd (PRC) is being worked out with Aktyubrentgen JSC; IBIS (Italy).

  Roche expressed its readiness to provide methodological and logistical support to Kazakhstan for the introduction of new diagnostic methods, namely, to provide the necessary laboratory equipment for research projects and as grants. The company's experience can help strengthen Kazakhstan's laboratory infrastructure and ensure that it meets international standards.

In September, Philips representatives visited to get acquainted with the base and production technology of Aktyubrentgen JSC and discuss issues related to the joint production of medical equipment. Thus, a memorandum of strategic cooperation was concluded between the Ministry of Health and Philips.

An OEM agreement was signed on both sides of Aktyubrentgen and SINOVISION on the localization of the production of multislice computed tomographs. Work is underway to prepare operational documentation, finance the project, purchase units, master the production of individual units at Aktyubrentgen JSC, manufacture a prototype, test and obtain a registration certificate for a computer tomograph.

  Medical and pharmaceutical clusters

Kazakhstan is interested in attracting investments and advanced technologies necessary for the successful implementation of the modernization of the economy. Key importance is attached to the development of the production of expensive innovative products, the promotion of the industry in the direction of technology transfer, its digitalization, as well as the development of a cluster initiative.

For the successful implementation of the goals set by the head of state, and based on the results of studying international experience, there is a need to create a favorable infrastructure for the development of the domestic pharmaceutical industry, in connection with which the Single Distributor took the initiative to create medical and pharmaceutical clusters in the country.

 

.

The creation of pharmaceutical clusters is expedient through the involvement of domestic research institutes, scientific laboratories, large medical universities, domestic production sites, the involvement of investment project support institutions, local executive bodies, as well as the deployment of clusters in free economic and industrial zones like R&D centers .

To date, the relevant order to create medical and pharmaceutical clusters in the country in the cities of Astana, Aktobe and Shymkent has already entered into force and work is underway to develop and approve road maps for the implementation of the initiative. In March, a memorandum was signed on the creation of a cluster in the city of Shymkent between the Ministry of Health of the Republic of Kazakhstan, the akim of the city of Shymkent, the South Kazakhstan Medical Academy, the production site "Khimfarm" and the association of the South Kazakhstan pharmaceutical cluster.

Clinical researches

As part of the Memorandum of Cooperation signed, Novo Nordisk and the Ministry of Health of the Republic of Kazakhstan are working together in the field of clinical trials for the treatment of diabetes mellitus, the provision of continuing education for healthcare professionals "Global Obesity clinics program" and programs to train Kazakh endocrinologists in modern methods of treating diabetes mellitus.

Thus, 162 Kazakhstani specialists took part in the online course "Diabetes University", accredited by the Royal College of Physicians, UK (Royal College of Physicians, UK) with the provision of continuing medical education (CME) points.

In the future, it is planned to organize a study of a drug for the treatment of diabetes mellitus in the framework of real clinical practice, in accordance with international requirements for this type of research and in accordance with the legislation of the Republic of Kazakhstan.

Along with this, in the development of the medical and pharmaceutical cluster in Astana, an important role is played by the creation of an in vitro diagnostics training center on the basis of the School of Medicine of Nazarbayev University, within the framework of the Framework Agreement signed by the Ministry of Health of the Republic of Kazakhstan with Roche, during a government visit to Switzerland.

On the site of the created training center, in addition to Roche, it is planned to launch educational and innovative programs with other global vendors for comprehensive advanced training and training of specialists from all over Kazakhstan.

In addition, GE Healthcare plans to open a branch of GEAcademy in Kazakhstan in order to increase the efficiency of the use of installed equipment. The search for a suitable partner and platform for the implementation of this project is currently underway.

Cooperation with national companies

To attract foreign investors to the pharmaceutical industry of Kazakhstan, a Memorandum of Cooperation was signed between the Single Distributor and Kazakh Invest. Within the framework of the document, the parties support initiatives on the implementation of investment projects.

A single distributor with the support of Kazakh Invest held a series of round tables and webinars with India, Japan, the Republic of Korea, Italy, Pakistan, Astana Diplomatic Club, International Associations of Pharmaceutical Manufacturers of the Republic of Kazakhstan, Association of Russian Pharmaceutical Manufacturers.

The ultimate goal of the efforts of the team of the Single Distributor and Kazakh Invest is the modern re-equipment of the Kazakh medical and pharmaceutical industry.

In addition, in order to implement the export acceleration program for Kazakhstani manufacturers, aimed at increasing export potential and expanding foreign trade, the Single Distributor and QazTrade signed a Memorandum of Understanding and Cooperation.

Cooperation involves the promotion of domestic medicines, medical devices and medical equipment to foreign markets.

The parties intend to develop a partnership to create conditions for increasing the competitiveness of domestic producers, searching for potential export markets and promoting medicines, medical devices and medical equipment to foreign sites.

QazTrade, relying on its professional activities and competence, is ready to assist in the study and identification of barriers to trade in foreign markets, protect national interests within the WTO and the EAEU, and also take part in the implementation of the country's trade policy.

Investor Guide - Investment Guide Book

In pursuance of the instructions of the President of the Republic of Kazakhstan and in the implementation of the Comprehensive Plan for the Development of the Pharmaceutical Industry, the Single Distributor, together with Kazakh Invest, prepared a guide for potential investors - Investment Guide Book.

  The objective of the guide is to provide a platform for entry into the country of major drug brands from packaging to the full production cycle, to provide support to investors at all stages of the implementation of the investment project, to resolve emerging issues in a timely manner, a single point for investors to contact the state.

INVESTMENT GUIDE BOOK is designed to provide information on available investment preferences and ensure openness and transparency of procedures, both for domestic and foreign investors. Its task is to provide support to investors at all stages of the implementation of an investment project, timely resolution of emerging issues, a single point for investors to contact the state, according to the one-stop principle.

EXPECTED EFFECTS

Over the past decades, comprehensive work has been carried out to attract foreign direct investment to Kazakhstan. Today, our republic meets all international requirements and is an ideal platform for the development of potential investors.

There are no trifles in attracting investments, every detail is important. For this reason, over the years of independence, all comfortable conditions have been provided and created in Kazakhstan so that foreign partners have a favorable environment for doing business and investment incentives, which will create irreplaceable turnover. To this day, only the best world practice is being studied and implemented.

Thus, in the future, great interest from investors is expected not only to attract capital to the manufacturing industries, but also to increase productivity and innovation. It is planned to increase the flow of advanced technologies in order to create a circular economy based on decarbonization and renewable resources, in particular, on the use of "green" hydrogen.

As for the pharmaceutical industry, in order to attract the production of branded drugs in the territory of the Republic of Kazakhstan, barriers to the development of contract manufacturing are reduced in the relevant regulations. As a support for import substitution, with representatives of global pharmaceutical companies Pfizer, AstraZeneca, RocheHolding, Janssen (Johnson & Johnson) and others, amendments and additions to the legislation were developed to simplify the processes of localization of branded drugs in Kazakhstan, by way of concluding long-term contracts between the Single Distributor and contract manufacturing customers .

It should be noted that the Ministry of Health of the Republic of Kazakhstan is completely revising the state policy on long-term contracts. Priority should be given to industries that meet international standards and provide an integrated approach to improving the range of products produced with an emphasis on scientific and technological innovations.

Of course, in order to get a 100% result, Kazakhstan will have to do a lot of work to train qualified personnel and eliminate their shortage. Fortunately, the country has enough resources for this.

Most of the higher educational institutions comply with international standards, cooperation agreements are concluded annually with the leading universities of the world, competent professors and teachers are involved, laboratories and the field of scientific research are being improved, and R&D centers are being created. With this approach, it is highly likely that Kazakhstan will surprise the world with its scientific discoveries, inventing, for example, a unique molecule.

Taking into account the world experience and introducing only the best practices to Kazakhstan, we significantly accelerate the process of the country's success on the global platform. It must be understood that world leaders like China, Korea and Japan also once began their great journey. Thanks to their efforts, perseverance, patience and the desire to become a key link in the international arena, today every second inhabitant of the earth is familiar with the companies of these countries.

Taking a step into its bright and prosperous future, today Kazakhstan provides a stable inflow of foreign investment and fulfills its obligations to investors by constantly introducing new tools, measures and support mechanisms. Thanks to all the measures taken by the state, the volume of foreign investments that come into our economy is increasing every year. Today we are faced with the task not only of maintaining the given dynamics of investment inflows, but also of improving their quality.

 

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Источник: Пресс-служба ТОО "СК-Фармация"