Message - 2026: From Capital Raising to Launching Production Facilities

A Series of Analytical Articles
On the Role of Baiterek Holding in Implementing the Address of the Head of State
“Current Challenges Facing Kazakhstan in a New Historical Cycle”

Message - 2026: From Capital Raising to Launching Production Facilities

Kazakhstan needs a coordinated investment attraction system in which capital raising, project preparation and the launch of production facilities are interconnected. In his Address to the People of Kazakhstan, President Kassym-Jomart Tokayev emphasized the need to strengthen coordination of investment policy and proposed transferring a range of related responsibilities to Baiterek Holding. This approach broadens the scope of the Holding’s investment transformation and its role in establishing new production facilities.

The Head of State drew attention to the lack of coordination among certain government agencies, overlapping responsibilities and insufficient long-term planning in working with investors. The President linked the resolution of these issues to the establishment of a unified investment policy management center.

“The most effective solution could be to delegate to Baiterek Holding a range of issues related to investment policy,” the President noted.

At the same time, certain powers will remain with the Ministries of National Economy and Foreign Affairs. Thus, the proposed approach envisages establishing a coordinated system with clearly defined responsibilities for all stakeholders and ensuring consistent engagement with investors.

Following the Address, the Prime Minister instructed the relevant ministries, together with Baiterek Holding, to prepare proposals for establishing a comprehensive investment management system. This work will involve identifying a central decision-making authority, clearly allocating responsibilities and ensuring centralized coordination of engagement with investors.

For businesses, the practical value of such a system lies in having a clear framework for interaction. Investors need to understand in advance the terms of participation in a project, available financing instruments, implementation requirements and the parties responsible for addressing any issues that may arise. Coordination in these areas affects how quickly projects move from negotiations to construction and production.

In this context, the transformation of Baiterek Holding into a national investment holding company takes on particular significance. Its role is expanding through participation in the development of major projects, attracting partners and pooling resources for their implementation.

The updated Development Plan through 2033 provides for strengthening the Holding’s role as a strategic investor and coordinator of major projects. This model focuses on diversifying the non-resource economy, developing businesses and attracting additional sources of capital. The financial instruments of development institutions are expected to operate in a coordinated manner and support projects at different stages.

In practical terms, this means the Holding becomes involved in the investment process at an earlier stage. The work begins by identifying the needs of the economy. Which products should be manufactured in Kazakhstan? Where are there opportunities for deeper processing? Which enterprises could replace imports or enter export markets? Answers to these questions make it possible to develop concrete investment proposals.

Sector-specific investment directorates have been established on the basis of the Holding’s existing departments. They participate in selecting project ideas, preparing investment proposals and determining financing structures. The international division helps bring foreign companies, banks and investment funds into projects.

This approach makes it possible to identify suitable partners more precisely. One enterprise may need technology and manufacturing expertise. Another may require an investor willing to acquire an equity stake. A third may need long-term lending or a combination of several instruments. Assessing these needs makes negotiations more substantive and helps determine the terms of participation for each party. Capital raising is therefore directly linked to the quality of the future production facility.

“To give a new impetus to economic development, we need to attract leading global and domestic companies with advanced technologies, the necessary expertise and significant opportunities to access global markets,” the Head of State emphasized.

That is why project preparation must take into account the expertise an enterprise will acquire, the market demand for its products and its ability to operate sustainably after launch.

As part of the Holding’s transformation, equity financing mechanisms are being expanded, while overlapping support instruments among its subsidiaries have been eliminated. This makes it possible to establish a complementary business support system. Lending, equity financing and leasing address different business needs, while combining them helps connect investment in business development with equipment acquisition and the creation of production capacity.

The Silumin of Qazaqstan plant, which opened on October 21 in the Karaganda Region, is an example of this coordinated approach. The enterprise manufactures aluminum and bimetallic heating radiators under the Norq brand.

Qazaqstan Investment Corporation participated in the project through equity financing, while the Industrial Development Fund supported equipment acquisition through leasing. Total investment exceeded KZT 23.4 billion, including KZT 5 billion provided by Qazaqstan Investment Corporation.

The first phase of the plant has been completed, creating 200 jobs. Its designed annual production capacity is 5 million radiator sections. The facility brings together the entire production cycle, from processing raw aluminum to manufacturing finished products. The plant is equipped with machinery from Switzerland, Italy and Türkiye.

In this case, combining financial instruments made it possible to provide the project with both capital and modern equipment. For the region, the result is a new manufacturing facility, additional jobs and opportunities to process raw materials domestically.

The Qazaq Kalium project in the West Kazakhstan Region illustrates another stage of the investment process. It envisages the construction of a complex for producing potash fertilizers with a designed annual capacity of 1.5 million tonnes.

In September, the Development Bank of Kazakhstan, Qazaq Kalium and a consortium comprising Thyssen Schachtbau and Shakhtbau Kazakhstan signed an agreement to commence financing under a contract covering the design, equipment supply and construction of a mine complex at the Satimola deposit. The contract is valued at EUR 418.2 million.

The participation of Germany’s Thyssen Schachtbau, which specializes in mine construction and underground structures, provides the project with the necessary engineering expertise. At this stage, the coordination of financing, design and construction is of critical importance. The stated capacity refers to the planned production facility and will be achieved through the subsequent implementation of the project.

These examples demonstrate the different challenges addressed at various stages of investment activity. In one case, combining support instruments has already enabled a manufacturing facility to open. In the other, the conditions are being established for the construction of a large-scale industrial complex.

The strengthening of Baiterek Holding’s role outlined in the Address is directly related to the need to make this work systematic. The Holding’s investment transformation provides a foundation for its involvement throughout the entire decision-making process, from identifying promising production opportunities and attracting partners to financing projects and overseeing their implementation.

“The effectiveness of investments should be assessed by the number and quality of production facilities commissioned, as well as their actual contribution to the economy,” the President stated.

Therefore, what matters is actual production output, capacity utilization, technology adoption, sustainable sales and the jobs created. Through these results, investment attraction becomes an integral part of Kazakhstan’s long-term development.