Kazakhstan and Germany Sign $6.3 Billion in Business Deals
Kazakhstan and Germany Strengthen Economic Ties with $6.3 Billion in Joint Projects
ASTANA – The recent business forum in Astana saw the official delegations of Kazakhstan and Germany sign 36 documents totaling $6.3 billion to develop joint projects in various sectors such as mechanical engineering, innovation, logistics, petrochemicals, healthcare, information technology, and industrial automation. This significant event took place during the official visit of German Chancellor Olaf Scholz to Kazakhstan and marks a milestone in strengthening the economic ties between the two countries.
President Kassym-Jomart Tokayev expressed his gratitude to Olaf Scholz and representatives of large German businesses for their participation in the forum. He highlighted the importance of the close diplomatic relations between Kazakhstan and Germany in fostering a wide range of economic opportunities that ultimately contribute to the comprehensive relations between the two nations. Germany, being one of the largest and most developed economies globally, sets high standards in manufacturing, technology, green economy, and innovation, with products known for their exceptional quality and reliability.
The bilateral trade turnover between Kazakhstan and Germany saw a significant 41% increase last year, amounting to $3.9 billion. Additionally, direct investment from Germany into Kazakhstan surged by 64% in 2023, reaching a record high of $770 million. Over the years, Germany has invested more than $6.6 billion in the Kazakh economy, with over 90% of these investments directed towards non-resource sectors.
President Tokayev emphasized Kazakhstan’s strategic location as a pivotal intra-regional hub for trade and logistics in Eurasia. He highlighted the importance of the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor, as the shortest and most reliable route to Europe, with a potential throughput of up to 10 million tons of cargo. He proposed linking the Middle Corridor with the Trans-European Transport Network and the EU Global Gateway initiative to further support the growing trade volumes between the east and west.
Several key agreements were signed during the forum, including a framework agreement between the Kazakh Ministry of Transport and Skyhansa, a Kazakh-German consortium, to construct an international airport in the Khorgos—Eastern Gate special economic zone. Another agreement was made between Aktau Commercial Seaport and Rhenus, a German logistics service provider, to build a trimodal container terminal by 2030.
Efforts to localize production in Kazakhstan were also emphasized, with agreements like the one between Baiterek National Holding and CLAAS Global Sales aiming to produce seeders and tractors in the country amounting to $1.1 billion. Furthermore, a strategic partnership agreement worth $27 million was signed between Samruk Kazyna Sovereign Wealth Fund and SIEMENS to localize the production of control and measuring devices in Kazakhstan.
The collaboration between Baiterek holding and KfW Bankengruppe, a German state-owned investment and development bank, also saw the signing of a memorandum of understanding for $500 million to provide credit financing for renewable energy, energy efficiency, and support for small and medium-sized businesses in Kazakhstan. These agreements and partnerships are expected to further enhance the economic cooperation between Kazakhstan and Germany, paving the way for mutual growth and development in various sectors.
