Presidents Kassym-Jomart Tokayev of Kazakhstan and Emmanuel Macron of France came together for the Kazakhstan-France Business Forum, highlighting the growing economic collaboration between the two nations. The forum, held on November 1, was a platform for the leaders to discuss various sectors of mutual interest and explore new opportunities for cooperation.
President Tokayev's opening speech emphasized Kazakhstan's remarkable economic growth, with a 4.7% increase in 2023, driven primarily by non-oil sectors. He also outlined the strategic goal of doubling the national economy's size by 2029, demonstrating Kazakhstan's commitment to economic development.
One key theme of Tokayev's address was the country's dedication to attracting foreign investment. Kazakhstan boasts a substantial volume of foreign direct investment, surpassing the combined investments of all other Central Asian nations. The president acknowledged the fruitful economic relationship between Kazakhstan and France, citing a 30% increase in bilateral trade last year, amounting to $4bn.
"France is one of the largest international investors in our economy, injecting almost $19bn. In the first six months of this year, we recorded an impressive 50% increase in FDI to Kazakhstan from our French partners. This is a sign of high confidence in Kazakhstan," President Tokayev said.
The president highlighted the presence of almost 200 French companies in Kazakhstan, spanning various sectors including energy, industry, railways, and agri-food. Notably, Kazakhstan is a vital supplier of crude oil to the French market and is eager to expand its energy exports. The potential for cooperation in oil and gas exploration, uranium exports, and renewable energy projects was also discussed.
Kazakhstan, the world's top uranium producer, is keen on leveraging its position to collaborate with France, which relies on nuclear power for 63% of its energy needs. Both countries aim to work together on achieving a net-zero carbon future, and French Total Energies has already invested $1.3bn in a 1 GW wind farm in Kazakhstan.
“There is enormous potential for green hydrogen as well. With the right partnerships, Kazakhstan can become a top-10 exporter. We look forward for more cooperation in this vital sector, whether it involves production, transfer of technology or expertise,” Tokayev noted.
The extraction and processing of critical raw materials, including rare earth metals, were identified as a promising area of cooperation. Kazakhstan possesses a vast number of unexplored deposits that could be valuable in the global technological revolution, especially as demand for rare metals is expected to quadruple by 2040.
Kazakhstan holds more than 5,000 untapped resources worth over $46 trillion and can serve as a dependable collaborator for the development of this particular sector.
“Today we already produce 16 out of 30 rare earth materials critical for the EU economy, covering 70% of the European phosphorus market. We possess deposits for nine more kinds that can be exploited with the necessary investment. We invite French companies to join this win-win partnership,” the head of state emphasized.
Additionally, the agro-food sector offers an opportunity for collaboration, with Kazakhstan aiming to double its exports of agro-food products to meet international food deficits. The President expressed the country's readiness to provide comprehensive support to joint projects in animal husbandry and crop production.
Transport and logistics were highlighted as another relevant area for cooperation, with Kazakhstan actively developing the Trans-Caspian International Transport Route or the so-called "Middle Corridor", which is seen as the shortest and most viable route between Europe and Asia. The goal is to transport 10 mn tons of cargo annually and link these efforts with the Trans-European Transport Network and the EU's "Global Gateway" initiative.
President Tokayev also emphasized potential cooperation in biotechnology and medicine, particularly through the national biopharma holding QazBioPharm, which aims to develop the biotech cluster. Leading companies are planning to localize the production of medicines and medical equipment in Kazakhstan, and French companies are encouraged to participate in this endeavor.
In conclusion, President Tokayev encouraged French companies to consider the competitive advantages of the Astana International Financial Center (AIFC) for attracting investments. Over 2,100 companies from 78 countries are already based in AIFC, facilitating investment capital not only for Kazakhstan but the entire region.
President Macron, in his address, praised Kazakhstan's goal of achieving carbon neutrality by 2060 and expressed France's readiness to support Kazakhstan in this direction. He emphasized the importance of developing partnerships through transport routes, especially the "Middle Corridor," and noted France's willingness to contribute to the development of this route. Macron also highlighted the potential for cooperation in the agro-food sector to ensure food security and thanked President Tokayev for his willingness to cooperate in various areas of mutual interest.
French President Emmanuel Macron embarked on his inaugural official visit to Kazakhstan on November 1. The leader was warmly welcomed at the capital's airport by Prime Minister Alikhan Smailov. Without delay, Macron proceeded to President Tokayev's residence, where he received a formal reception in accordance with diplomatic protocols.
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