Chinese investors lead surge as Kazakh FDI on course to hit $10bn for 2016

Kazakh FDI: With some $24bn of Chinese project investment in the pipeline over the coming years. the Astana is expecting FDI into Kazakhstan to hit $10bn this year, according to Kaznex Invest Chairman Borisbiy Zhangurazov, almost double the figure for last year when investment inflows dropped  back by 30%.  “Kazakhstan has attracted $2.7 bn of foreign direct investment [in Q1],” he said. “This is much higher than in 2015 and is on par with 2014 and 2013.”
While  the Netherlands , the US and Switzerland havebeen the top three investors over the past decade, they are now being overtaken by their Chinese counterparts who announced 12 greenfield investments last year and about 40 more in the pipeline worth a total of $24bn, he added. While 50% of the total has  been funnelled into Kazakhstan’s mining sector, all the new Chinese-backed projects are in the processing and manufacturing sectors and include a  $1.4bn polypropylene production facility  at Atyrau that is being financed by a loan from China’s Exim Bank, and a $1.2bn hot briquetted iron plant being developed by China’s MCC Baosteel in partnership with Eurasian Resources Group. Chinese companies are also in talks to invest $1.9bn in 19 agricultural projects across the country.