During a conference commemorating the 25th anniversary of the German economy in Kazakhstan, the topic shifted to the potential relocation of German companies' production and offices to Uzbekistan, media reports.
Many of these companies had moved from Russia to Kazakhstan due to economic sanctions against Russia, but recent changes in Kazakhstan's tax laws and unstable business environment were causing concern.
Head of Finance & Administration Henkel Central Asia & Caucasus bei Henkel
In particular, Stefan Mohrlang, Head of Finance & Administration Henkel Central Asia & Caucasus bei Henkel, expressed his concern over revenue forecasting, noting that the corporate tax for his company had tripled.
Stefan Mohrlang also highlighted the lack of qualified personnel in Kazakhstan, which resulted in difficulties with employment due to outstanding loans of employees and executives.
Stefan Mohrlang emphasized the importance of stability and tranquility for a successful business and suggested that Uzbekistan could be a potential investment market, explaining that the company continuously analyzes risks and looks for the most favorable conditions.
At the conference, it was emphasized that Kazakhstan is crucial for maintaining competitiveness and attractiveness for investors, not just for German companies but also for other foreign organizations.
Representatives of the German economy mentioned that around 30-35 German companies have entered Kazakhstan's market since the start of the war in Ukraine. Despite the challenges, Central Asian countries continue to receive attention from international investors.
The conference highlighted the need for stability and favorable conditions for successful business operations.
While Kazakhstan remains an important market, companies are considering other options, too, such as Uzbekistan.
The annual investment inflow from Germany to Kazakhstan is $400-450mn, directed towards manufacturing, services, and agriculture rather than oil and gas.
Now, German companies are actively developing their activities in Kazakhstan. One of the world's largest manufacturers of building materials, the German company Knauf, plans to launch a plant in the Zhambyl region to produce plasterboard and dry building mixtures. The total investment in the plant will amount to KZT 60bn. An investment agreement was signed with the German company Monterra Qasaqstan to construct a gold processing plant in the Kordai district. The project cost KZT 832bn.
SYBAC SOLAR plans to build a 400 MW solar power plant in the Zhambyl region. The Hansa Consortium announced investing $500mn to construct and manage Aktobe’s new airport.
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