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Kazakhstan considers South Asia and Africa as potential export markets
Date 2020-06-11 09:22:35
Kazakhstan considers South Asia and Africa as potential export markets
Which countries in the Southern Asia and Africa might be interested in the products made in Kazakhstan? What the domestic producers should focus on? What goods do Asia and Africa need and what will be in great demand there? A thorough analysis is needed in order to answer these questions. Representatives of the ‘QazTrade’ Center for trade policy development under the Kazakh Ministry of Trade and Integration conducted a market study of the member states of the Organization of Islamic Cooperation (OIC) as part of the work on export expansion. Experts said that Kazakhstan considers OIC member states as promising markets for exporting the domestic goods – first of all, the processed products.

Canned food, sweets, steel and metal pipes will be in demand in South Asia

According to QazTrade, the total trade turnover of Kazakhstan with the countries of South Asia amounts to US$2.3 billion (or 913.1 billion tenge). A great part of the trade turnover falls on India and stands at 79.7 percent, which amounts to US$1.9 billion (754.3 billion tenge). Afghanistan is in the second place. According to the analysts, the potential of expanding cooperation with these two markets alone may increase the export volume of Kazakhstan by US$500 million (198.5 billion tenge).

“A study of the market needs of the Southern Asia showed that there is a potential for the export of the processed products made in Kazakhstan. If we consider entering the South Asian region through the market of Afghanistan, there is a good opportunity for exporting the food industry goods with long shelf life, including flour, confectionery and canned goods. We also see a high consumer demand for Kazakh goods in India. The manufactured goods have the greatest potential in that market, including mineral products, machinery, equipment, devises and apparatus, as well as base metals and products made of them,” said Arman Abenov, Director General of ‘QazTrade’ Center for trade policy development.  

African consumers will actively purchase fertilizers, agricultural machinery, transformers and batteries

Another market analyzed by the QazTrade experts was Africa and its market potential.

“Today Africa is the fastest growing continent. We must use the moment to consolidate niches for the Kazakh business sector that can bring significant benefits. There are favorable opportunities for participation of Kazakh building companies in the construction of road infrastructure facilities, as well as prospects for delivering to the African market weapons and military equipment or opportunities for educating African students in Kazakh universities,” Abenov said.

In particular, the study showed that export of products of the Kazakh chemical industry and mechanical engineering is seen as a favorable direction. Given the fact that Africa lacks its own production and its growing agro-industrial complex needs these goods, Kazakhstan could well arrange the supply of fertilizers and mineral raw materials, as well as agricultural equipment and components to African markets. Experts say that in this case, it would be possible to use the capabilities of the Kazakhstan’s tractor plants. In addition, transformers, batteries and bearings, as well as products of the metallurgical complex, including ferroalloys and steel pipes, can be in demand in African markets. There are also opportunities for the export for processed agricultural products, including flour, cereals, confectionery, fats and oils.

OIC member states are willing to increase import from Kazakhstan

Representatives of the ‘QazTrade’ Center for trade policy development under the Kazakh Ministry of Trade and Integration took part in a seminar meeting of the Islamic Organization for Food Security (IOFS) dedicated to trade cooperation of the IOC member states. The event discussed issues of food security in the world, taking into account recent developments, as well as prospects for promoting the Kazakh export. Representatives of the IOFS noted that the Organization is ready to provide comprehensive assistance to Kazakhstan in this direction. In particular, to establish cooperation with the private sector of 57 OIC member states, as well as to form a list of the needs in the agricultural products of individual countries. In addition, the IOFS will assist in the process of transportation and storage of Kazakh products that are in demand.  

Photo: ostov.info

Source: https://kazakh-tv.kz/en/view/business/page_213607_kazakhstan-considers-south-asia-and-africa-as-potential-export-markets