# Presentation: 708385

## Commercial Learnings of Kazakhstan for Make Benefit Glorious Exports of America

- Stuart Schaag
- Senior Commercial Officer
- U.S. Embassy Branch Office, Almaty

## What Kazakhstan Is Not!

## Agenda

- A _**Hypothetical**_ Situation
- Why Kazakhstan Should Be On Your Radar
- Obstacles and Limitations
- Two Case Studies:  Getting it Right!

## Slide 4

## Obligatory Statistics

- U.S exports _**doubled**_ from 2004-2006.
- Annual growth rate of appr. 9% this decade.
- Per capita GDP second only to Russia’s.
- U.S. investment reaching _**$14 billion**_.
- Investment grade rating.
**Large reserves of natural resources** – oil, gas, coal, minerals.

## Why Kazakhstan? Why Now?

- Source of energy for a Russia-dependent Europe and an energy-starved China.
- Demand for new infrastructure and the financing to pursue it.
- Strong banking sector to support growth.
- Firmly positioned economic leader of Central Asia.
- Growing middle class.

## Actively Pursuing Diversification

- Goals
- Modern, diversified economy
- High value added and high-tech component
- Strengthening of the non-oil sector
- Economy largely privatized
- National Fund and National Innovation Fund seeking to attract new industries.

## Kazakhstan Could Be Right For You If...

- Export sales are an important part of your business and emerging markets are a critical element.
- Your firm has experience in Eastern Europe, Russia, or Ukraine.
- Your firm is active in GOK “growth sectors” –construction materials, food processing, metallurgy industries, transportation & logistical support, oil and gas equipment production, agriculture machinery
- You are willing to invest your time and effort for the long haul.

## Obstacles and Limitations

- Small market size – 15 million population.
- Regional market lacks financial resources.
- Weak infrastructure – transportation links and telecommunications.
- Regulatory costs – taxation, work permits.
- Transparency of customs & judicial system.
- Increasing labor costs.

## Prime Minister’s Concerns

- Insufficient integration into the world economy
- Weak inter-branch and in-region economic integration
- Low consumer demand for products and services
- Underdeveloped production & social infrastructure
- General technical backwardness of enterprises
- Absence of effective relations between science and production
- Low spending on R&D

## Gateway to Central Asia

- Central Asian countries have above average growth:
- Kyrgyz Republic (2.7%); Tajikistan (7%); Turkmenistan (9%); Uzbekistan (7.3%).
- Large gas reserves in Uzbekistan and Turkmenistan (Global Top 10).
- Opportunities with World Bank, EBRD & ADB infrastructure projects.

## You’ll Be Successful If...

- You do your homework first.
- You find out who your business partner is.
- You hire competent legal and accounting professionals with “on ground” experience.
- Invest necessary time and resources.
- Be prepared to provide after-sales service.
- Let the U.S. Commercial Service in Almaty open doors for you!

## Some Tools

- EximBank
- Trade and Development Agency (TDA)
- Business Information Service for the Newly Independent States (BISNIS)
- Special American Business Internship Program (SABIT)

## Case Study: Porta-Kamp Int’l

- Business: Housing for remote work sites.
- Target market: Oil & gas companies
- What we did:
- 12 pre-arranged appointments plus additional meetings on the fly as goals changed
- Assistance at trade show and conference to gauge market
- Networking at multiple receptions
- Business plan being developed by Georgetown University class

## Case Study: WCCO Belting

- Business:  Agriculture belting
- Target market: Agricultural equipment distributors
- What we did:
- Counseling (USEAC & BISNIS)
- Trade Mission/Trade Exhibition
- Eight pre-arranged meetings
- Farm tour
- GOK organized roundtable

## If You Don’t Believe Me...

- “The appointments in Kazakhstan were the best of the entire trade mission...we secured several orders.”– Tom Shorma, WCCO Belting
- “Thank you for this report - it's excellent work. This is really a valuable service.”	 – Dan Brents, TVS International
- “I achieved 100% of the trip objective.” – Afram Melki, Lenel Systems International
- “The arranged meetings would not have been possible with out help from the Commercial Service” – Leonard Trudo, University of Missouri–St. Louis
- “We are impressed with the U.S. Commercial Service” – Lt. Governor Jack Dalrymple, North Dakota

## Contact Information

***The U.S. Commercial Service****** ***
**U.S. Embassy Branch Office**
**97 Zholdasbekov St, 15****th**** floor**
**Almaty, 480099, Kazakhstan **
**Tel: (7-327) 250-4850; Fax: (7-327) 250-4987**
**almaty.office.box@mail.doc.gov**
**www.buyUSA.gov/kazakhstan**