Archives

• Setting up in Kazakhstan – what all businesses need to know

  Posted 01/09/2014

  

  Last month’s Somerset Chamber of Commerce magazine picked up on research by the British Chambers of Commerce which identified Kazakhstan as one of the countries perceived as providing the greatest opportunities for growth in the next five years.

  Perhaps you’ve picked up on that message too? Maybe you’re keen to move into this market, but no doubt without putting lots of cash at risk.

  Whether you’re thinking from your own perspective as an entrepreneur, or weighing the issues up with support from your board of directors, here are some of the key questions you should be asking.

  • How will you identify and contact potential customers, partners and distributors?
  • How will you obtain sales leads and opportunities?
  • How will you ensure you pre-qualify for tender opportunities, or better still, obtain direct sales?
  • How will you address the practicalities of language, business etiquette and culture?
  • Where will you obtain advice, and who will you trust to understand and protect your interests?

  If you’re thinking of taking things a step further and registering a local branch or setting up a local company to ensure you have a real presence in country:

  • How will you identify and select a local partner?
  • How will you protect your investments, assets and people?
  • How will you obtain visas, work permits, licences and other operational requirements?
  • How will you get money out of Kazakhstan, and what taxes will apply?
  • How will you ensure that management / overhead costs are allowed against local taxes?

  It’s more crucial than ever that your investment is of demonstrable benefit to the local economy. As with other countries in the region, the government are increasingly promoting the importance of “local content”. So you’ll need to understand:

  • What constitutes “local content” in relation to business ownership, staffing, purchasing and manufacturing.
  • How can you maximise local content while bringing in outside investment, assets and people.

  If you’re already doing business in Kazakhstan, why not share your experiences with us via twitter.

  Alternatively, if you’re just starting out in Kazakhstan, let us know if you are looking for opportunities, local delivery partners or professional tax advice. We’ll be happy to talk to you.

   

  Posted in: Opportunities for SMEs, Recent Developments

• Pushing to New Export Markets?

  Posted 28/08/2014

  Successful exporting is often about knowing where and how to tap into demand for your products and services. Choosing the right international market is crucial to your success, whether your company is just starting out in export or already a seasoned exporter.

  So where do you start?

  

  Thorough market research is vital before you launch into doing business in a new country. It’s not only about finding a country where demand for your exports will be high – understanding the market will be just as important if you are to get your market entry strategy right.

  How to assess overseas market risks

  Research into potential export markets should include careful analysis of any:

  • Business risk – how will you avoid the pitfalls of a different business and social culture? Knowledge of local custom and practice will help you to avoid causing offence, misunderstandings and delay.
  • Legal or regulatory risk – what difficulties might arise from doing business under an unfamiliar legal or regulatory framework and dealing with different regulatory bodies?
  • Political risk – how stable is the market politically, economically and socially.

  Not only can the cost of such international research mount up, it also requires significant investment in terms of time – a resource which is often in short supply in the SME sector. How many business owners have time to travel to other countries to find out how local business operates? Not to mention the strain such enquiries could place on cash flow. Whilst government assistance may initially be available through UKTI, more detailed knowledge about an overseas market may be harder to come by without some form of partnership with an agent or company with the right knowledge and experience.

  This is where specialist companies like Kazopp can be invaluable. We can help by guiding your SME to where the potential demand is and working with you to facilitate your route into exports to Kazakhstan. We’ve already done the leg work in country and have built up knowledge, experience and most importantly, the business contacts and relationships which can give SMEs new to the country a head start.

  If you’re interested in starting or expanding your export portfolio, then get in contact with us.

   

  Posted in: Opportunities for SMEs

• Energy Sector Reforms in Kazakhstan

  Posted 18/08/2014

  Kazakhstan has announced major reforms to the country’s energy sector. Kazakhstan’s president, Nusultan Nazarbayev confirmed that a new regulatory body will replace the Ministry of Oil and Gas and will benefit from greater links to other sectors, such as industry, technology, environment and water resources.

  Analysts are already predicting that a new and improved regulatory body with a broader remit could have a significant impact upon speeding up progress for energy projects, particularly within the oil and gas industries.

  

  Here at Kazopp, we welcome these further steps to streamline the regulatory framework for energy projects, which are likely to have a positive impact upon doing business in this sector. They further demonstrate the Kazakh authorities desire to facilitate business within the country, as shown by the recent relaxation of visa requirements.  All good news for potential exporters looking to benefit from the opportunities available in Kazakhstan, given the sheer scale of the country’s resources and projects.

  Never a better time to start thinking about growing your business by exporting to this exciting market – contact us to find out more.

  Posted in: Opportunities for SMEs, Recent Developments

• Why would you export to Kazakhstan?

  Posted 14/10/2013

  Here’s one answer.  The KazMunaiGas corporation has recently announced a $23 billion project to expand production at the Tengiz field, to be implemented between 2013-2018.  Projects like this are currently planned and taking place across the country.  Compare this to projects currently taking place in the UK.  Only Hinkley Point C, which will involve an estimated £14 billion investment over a similar period, is in the same league. (Unless you count HS2, which we’re not counting on yet!).

  

  UK exports to Kazakhstan in 2012 were valued at £375 million, but the country remains a source of untapped potential. According to UK Trade and Investment Minister Lord Green:

  “Kazakhstan is emerging as the dominant economy in central Asia and offers many opportunities for British businesses small and large across a wide variety of sectors”

  Maybe the question should be why wouldn’t you export to Kazakhstan? Perhaps you don’t know what it might involve?  Why not ask us?

  Posted in: Recent Developments

• UK Prime Minister reaches out to Kazakhstan

  Posted 02/07/2013

  

  Kazakhstan officially goes on the trade-map this week with UK PM David Cameron’s first visit to the country.  His brief, to develop trade links, is one which we’ve been working on for over a decade.  Never before have there been so many opportunities for UK suppliers to reach out to this market.

  Our clients are continually looking for ways to save time and resources on complex construction and maintenance projects.  UK providers can bring both innovation and efficiency through tried-and-tested products and services to this exiting market.

  If the thought of going out alone puts you off, we would be delighted to help match your services to our client’s needs.

  Posted in: Recent Developments