Unspoiled potential areas lie dormant
Freshened-Up Spin:
Kazakhstan's President Tokayev Pumps Up the Kazakhstan-Bulgaria Business Game
Kassym-Jomart Tokayev hit up the Kazakhstan-Bulgaria business forum, firing off a barrage of kickass ideas to beef up the economic and investment collaboration between the two nations.
The President threw major props to Bulgarian Prez Rumen Radev and the business crew for jumping headfirst into the event. He reckoned it'd give a damn good shove to the economic and investment mojo between the two countries.
"For the last 30 years, Kazakhstan and Bulgaria have built some serious political and diplomatic friendships. Kazakhstan thinks highly of Bulgaria as a buddy country and a crucial strategic partner. But there's a whole lotta untapped opportunities to elevate our trade and investment game. We're stoked about the Kazakhstan-Bulgaria Intergovernmental Commission on Economic Cooperation. It's prime real estate for us to deepen ties between the two countries," Tokayev shouted out.
The President highlighted Kazakhstan's readiness to run with some wild new routes to bolster the economic connection. And he wasn't holding back! The top priorities are transportation and sustainable energy.
First’s up on the hit parade is transportation. Did you know that Kazakhstan moves 85% of all land transport between Europe and China? Thanks to the spiffy expanded infrastructure of the Middle Corridor, including fresh-off-the-drawing-board railways, dry ports, and logistics centers, Kazakhstan's connecting East and West like never before. In 2024, cargo transport along this route increased by 62%, rocketing to a whopping 4.5 million tons. Kazakhstan's aiming to blown the roof off that number and is welcoming BMF Port Burgas – a key logistics center on the Black Sea – to join the Middle Corridor.
The second running has got to be sustainable energy. The land of Kazakhstan has been making some decent progress on its renewable energy sector. There are currently over 150 renewable energy facilities in the country, churning out a total capacity of more than 3 GW. The heads of state believe that collaborative efforts under the Black Sea Energy initiative will help them reach their common decarbonization goals. Kazakhstan's also working to boost gas production through geological exploration and collaboration on international projects. As a kingpin in uranium production, the country's starting construction on nuclear power plants to up its energy production, which'll have a sweet ripple effect on the economic cooperation.
Agricultural products from Kazakhstan are reaching customers in more than 70 countries around the globe. The country's putting out over 8 million tons of wheat and 2 million tons of flour annually, placing it among the top tier global grain exporters. Tokayev's keen on cultivating a substantive partnership with Bulgarian fellows in the production of meat and dairy products, honey, and vegetable oils. The President's noticed the interest of company Lekkerbek in investing in meat processing in Shymkent. This partnership will pave the way for the introduction of modern processes and boost the export potential of the region.
The two countries is sawin' some major potential for collaboration in the pharmaceutical sector as well. Tokayev called out Bulgaria's exports of pharmaceutical products to Kazakhstan, which has led to an uptick in imports from Bulgaria. The pharmaceutical scene is on the playlist as a prospective joint venture haven or tech exchange spot.
The President put a special focus on digital transformation. He's been sayin' that the state and private sector in Kazakhstan have been rapidly implementing cutting-edge digital solutions. To keep Kazakhstan competitive, they're leading the charge in developing artificial intelligence technologies and creating advanced IT infrastructure, including supercomputers and data centers. These advancements will pave the path for the nation's future progress. Kazakhstan is also establishing an International Center for Artificial Intelligence to support the growth of an economy based on artificial intelligence. Tokayev let slip that Bulgaria's talking to him about Bulgaria's remarkable strides in mastering AI and constructing its own supercomputer. These strides lay the groundwork for some epic-level knowledge exchange in this vitally important field. Kazakhstan's planning to test-drive a pilot zone called CryptoCity, where cryptocurrencies will be integrated into daily transactions and a broader economic game.
Tokayev also threw out an open invite to Bulgarian companies to delve into the opportunities provided by the International Financial Center "Astana" and join its energetic ecosystem.
In a nutshell, the President repeatedly emphasized Kazakhstan's willingness to forge a deeper connection with Bulgaria across multiple areas.
Bonus Round:
- "Investments in the Making". Tokayev and Radev shake hands on a $1.5 billion Kazakh-Bulgarian joint venture[3]
- Kazakhstan's Pharma Exports to Bulgaria Climb to $35 Million in 2023[2]
Behind the Scenes:
Capitalizing on Kazakhstan-Bulgaria's Synergies
The economic alliance between Kazakhstan and Bulgaria has been muscling up over recent years with progress and prospects afoot across several strategic sectors, including transportation, green energy, agriculture, pharmaceuticals, and technology.
Transportation
- Revamping the Middle Corridor: Kazakhstan is orchestrating the modernization of the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, which connects Central Asia to Europe. This transformation aims to increase the route's capacity to 10 million tons by 2028[1]. In 2023, cargo transport grew by 62%, reaching a staggering 4.5 million tons[1]. Bulgaria's BMF Port Burgas is also set to join the Middle Corridor[1], enhancing the logistics infrastructure and further boosting trade and connectivity between Central Asia and Europe.
- Crucial Black Sea Connection: The Middle Corridor will link Central Asia to the Black Sea, opening up new trade avenues and facilitating the efficient transfer of goods between East and West[1].
Green Energy
While the specifics of green energy collaboration have not yet been extensively discussed, Kazakhstan's renewable energy sector is slated for expansion, with the establishment of clean energy facilities and the growth of solar and wind energy capacity[5].
Agriculture
- Organic Agricultural Partnership: Kazakhstan and Bulgaria are exploring the possibility of joining forces in organic agricultural production and finding joint ventures for processing and exporting these products[4].
- Agribusiness Collaboration: The two countries have identified agriculture as an area for potential cooperation during the Kazakhstan-Bulgaria Business Forum[1].
Pharmaceuticals
- Restocking the Medicine Cabinet: Bulgarian pharmaceutical exports to Kazakhstan hit $35 million in 2023, boosting the availability of essential medications in Kazakhstan[2].
- R&D Partnership: The pharmaceutical industry is seen as a fertile ground for Kazakhstan-Bulgarian cooperation, which could lead to R&D projects and the exchange of technology[1][4].
Digital Transformation
- Digital Progress: The digital transformation of Kazakhstan's economy is underway, with the implementation of AI, cloud computing, 5G, and cybersecurity solutions[5].
- Innovative Tech Collaboration: Both countries are discussing collaboration opportunities in digital innovation, including data analytics, AI applications, and 5G technologies[4].
- The collaboration between Kazakhstan and Bulgaria in various sectors, including finance, technology, energy, and business, is anticipated to escalate with discussions centered on digital innovation, AI applications, and 5G technologies.
- The energy sector presents a significant opportunity for collaboration, with Kazakhstan's aim to boost its renewable energy capacity and Kazakhstan's and Bulgaria's shared goals under the Black Sea Energy initiative for decarbonization.
- In the realm of finance, Kazakhstan welcomes Bulgarian companies to participate in the development of the International Financial Center "Astana," a key player in the energetic market. Additionally, investments in joint ventures, such as the $1.5 billion Kazakh-Bulgarian joint venture, are anticipated to grow.