Archives

• How to begin your Export Success Story

  Posted 15/09/2014

  Often export success stories involving businesses tapping into the huge potential market in Kazakhstan cite the need to take the long term view.  Many large corporates emphasise the importance of taking time to establish local partnerships and relationships.

  Companies who have built up experience within the country place high value not only on partnerships, but also upon another virtue – patience. The volume of government regulation can appear daunting initially, especially for those without local help or experience.

  But how many SMEs can afford the time and expense involved in developing business relationships? And will it all be worth it?

  When you realise that you’re talking about a country which is geographically larger than the whole of Western Europe – a fact which alone commands attention – potential rewards are exciting. Kazakhstan has a population of 17 million people and has been led by President Nazarbayev since becoming independent of the former Soviet Union in 1991. Notwithstanding its own size, the country is dwarfed by its neighbours, China and Russia and yet scored ahead of these superpowers on its borders in a 2014 World Bank survey on the ease of doing business in various countries.

  The fact that several countries, including China, Canada and some from Western Europe continue to eye the country’s potential, attracted perhaps by the wealth of its natural resources, particularly oil and gas, speaks volumes. In addition, the government has begun to implement reforms in the energy sector and simplify regulatory requirements, for example, as to visas, which should make it even easier to do business there.

  As for the business relationships, the easiest way to get around this is to let an agent with the relevant knowledge, experience and contacts represent you, your products or services. This way any burden upon cash flow can be neatly avoided, not to mention a raft of time consuming research and business relationship building. Exports can be directed straight to the right buyer and market and with the additional advantage of accessible advice as to local business practices and procedures, there need be no sleepless nights worrying about business faux pas.

  Makes sense, right? Let us do the talking for you. What have you got to lose?

  If you’re interested in setting up exports to Kazakhstan or getting help with doing business there, get in touch.

   

  Posted in: Opportunities for SMEs, Recent Developments

• 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

• 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

• Could your SME hold the key?

  Posted 04/08/2014

  It’s a well known fact that much of the world’s easily accessible oil has now been exhausted. Whilst we are not about to run out of oil any time soon, the challenges for the future will be in finding ways to bring oil supplies which are not so accessible online.

  There is plenty of anecdotal evidence from oil/gas field projects, particularly the Kashagan field in western Kazakhstan as to operational difficulties and delays. That field alone is believed to contain 13 billion barrels of crude oil.

  Kashagan has suffered significant delays due to the presence of hydrogen sulphide and as a result of gas leaks discovered in the pipelines. There are also difficulties in managing the project due to extreme weather conditions – ice surrounds the oil field for lengthy periods throughout the year.

  

  The delays that such issues or mistakes cause are a major headache for the large oil companies – when something goes wrong, it costs a HUGE amount of capital.

  Might your SME hold the solution to the issues facing Kazakhstan’s oil industry?

  It will take a good degree of innovation and specialist skill to solve these issues and these are qualities often found in manufacturing SMEs. But how many are confident that they have the time and resources to consider exporting to an unfamiliar country like Kazakhstan, far from UK shores?

  And yet taking that step could be the big break most SME owners can only dream of.

  If your SME might hold the key to solving some of these issues, exporting to Kazakhstan could send your profits soaring. For advice and support which can make a real difference in easing the way to growth into this exciting market, contact us.

  Posted in: Opportunities for SMEs

• Why consider exporting to Kazakhstan?

  Posted 21/07/2014

  According to UKTI* research, companies who export regularly see significant benefits:

  59% of companies found that overseas business led to fresh ideas and innovation driving upgrades to products and services

  58% of entrepreneurs said exporting has led to levels of growth otherwise unattainable

  44% of companies active abroad reported increased turnover over a three year period

  

  Kazakhstan offers great potential returns in the oil/gas and construction industries, by virtue of the sheer size of those sectors in country. But we often talk to SMEs that don’t have the time and budget to research new markets or are cautious about branching out into new markets they are unfamiliar with. Kazopp’s network of contacts can help you to ensure your company is quickly talking to the right people, saving you valuable time and resource in finding new markets for your goods and services. We can also provide the reassurance you need to reach your export goals and succeed.

  We can offer you:

  • A unique opportunity to launch your company into Kazakhstan
  • Introductions to our established network of contacts
  • Support and advice on doing business in Kazakhstan
  • Up to date news and information on target markets via our website
  • Sector specific expertise and experience
  • Opportunities to raise your company profile

  Contact us today or call 01935 385929 for more information.

   Kazopp – Helping you succeed in Kazakhstan markets

   

  *www.ukti.gov.uk

   

  Posted in: Opportunities for SMEs

• Opening up business travel to Kazakhstan

  Posted 17/06/2014

  

  Visa-free travel pilot unveiled

  The President of Kazakhstan, Nursultan Nazarbayev last week announced a pilot scheme to remove visa requirements for the citizens of 10 countries, including the UK. The move is further evidence of the country’s commitment to strengthening bilateral partnerships and establishing more favourable conditions for foreign business and investment.

  This visa-free regime will run from 15th July 2014 until 15th July 2015 and is aimed at those countries which have the best record of investment in Kazakhstan or greatest potential to invest in the future. During the pilot period, UK citizens with a valid passport will be able to enter, exit and transit through Kazakhstan on multiple occasions without a visa for up to 15 days at a time. Longer stays for business travel may be permitted upon application.

  At the conclusion of the one year pilot, the system will be reviewed by officials, as to whether it should continue.

  Watch out for further details of the pilot which are expected to be publicised within the next few weeks.

  This makes it a great time for potential exporters to the country to seize upon the vast array of export opportunities the oil/gas and construction industries have given rise to in Kazakhstan.

  Could your business become the next big export success story?

  Find out more about how we can help by contacting us today.

   

   

  Posted in: Opportunities for SMEs, Recent Developments