Kazakhstan invests in Tajikistan

2011-10-26 14:43:03

Kazakh investors are developing the markets of neighbouring Tajikistan. A subsidiary of «Samruk-Kazyna» National Welfare Fund, the Kazakhstan-Tajikistan Private Equity Fund is currently considering projects with a potential investment amount of 15 million US dollars.
Over the first six months of 2011, the Kazakhstan-Tajikistan Private Equity Fund considered more than 30 promising projects, 4 of which are in the stage of active negotiations. The fund intends to invest in projects in such sectors as mining, telecommunications, agriculture, finance and others.

Abai Alpamyssov, CEO, Kazyna Capital Management JSC
«Despite the fact that the level of stock market development in Tajikistan is not like in Kazakhstan and the economic development hasn’t had as high a rates, the country has economic potential.»

Tajikistan’s State Committee on Investments and State Property Management and «Kazyna Capital Management» JSC are the fund’s founders. The principles to attract Kazakh investments into the Tajik economy are specified in the document.

Abai Alpamyssov, CEO, Kazyna Capital Management JSC
«It is very important to note that the Tajik government is our partner and the issue of attracting investments on the whole is very important to Tajikistan. And having long-running historical and neighbourly relations with Tajikistan, Kazakhstan has demonstrated that we can and we want to actively work in Tajikistan.»

The fund’s initial capital stands at 32 million US dollars. If obligations to fund projects to the amount which will make up 80% of the authorized capital in the first stage are undertaken within 3 years, the parties will consider the fund’s additional capitalization, bringing it to 100 million US dollars, 20% of which will be the share of the Tajik side.

Abai Alpamyssov, CEO, Kazyna Capital Management JSC
«Speaking of time and dates, each fund has its own lifecycle. That is, it usually takes somewhere around 2-3 years to find the right project and enter into it. Then the fund participates in the project for about 3-5 years depending on the project by improving the performance as well as increasing efficiency and competitiveness. After this, it takes some time to withdraw from the project.»

According to the Tajikistan Statistics Agency, bilateral trade increased by 6% in 2010 compared to the previous year and exceeded 310 million US dollars.