Dividends worth 158 billion Tenge gained from the sale of Tele2 company
Bringing Kazakhstan's Economic Landscape into Sharp Focus: A Deep Dive into the Comprehensive Privatization Plan 2021-2025
Gearing up the pace for implementing Kazakhstan's comprehensive privatization strategy is the core focus, as announced by Alikhan Smailov, the Chairman of the Supreme Audit Chamber, during a joint parliament meeting. This move is aimed at propelling the nation's economic growth and capturing international investment while preserving national interests.
As of early 2025, the plan has seen a whopping 72% implementation rate. Out of the 637 objects slated for privatization or liquidation, a remarkable 460 have been ticked off the list, encompassing public sector assets and quasi-public sector holdings.
During 2024 alone, 14 objects valued at an impressive 589 billion tenge were transitioned into the competitive environment. Notably, the sale of JSC "Kazakhstan" mobile operator Tele2 to a Qatari investor accounted for 517 billion tenge of this total. The sale yielded 158 billion tenge in dividends for the republican budget, with an additional 76 billion tenge generated as corporate income tax due to the revaluation of the sold asset's worth. The remaining profits from this deal will be collected over the course of the next six years, stretching until 2028, in accordance with the contract terms.
With 177 objects still needing to be transitioned for the plan's full execution, the Supreme Audit Chamber feels the urgency to accelerate this process. According to Alikhan Smailov, this process holds critical importance as it will bring about substantial economic growth, operational efficiency improvements, and foreign and domestic investment opportunities.
While the comprehensive privatization plan has made impressive strides, ongoing assessments ensure that the remaining assets areHELD suited to meet the evolving needs of the national economy. This involves rigorous examination of criteria for asset sales, competitive transitions, and preparations for upcoming privatizations such as the planned 2024 sale of Qazaq Air to boost the competitiveness of the aviation sector and elevate the country's economic landscape appeal.
The plan also supports key industrial projects, such as a new ferroalloy production plant, which is expected to be completed by 2025. This project represents a significant industrial investment (over $245 million) and is expected to generate more than 520 permanent jobs, boosting Kazakhstan's presence in global markets.
The ongoing implementation of the Comprehensive Privatization Plan 2021-2025 is geared towards comprehensive economic growth by efficiently transitioning state assets to the private sector, fostering competition, and inviting foreign and domestic investment. As the plan presses forward, the state commission continues to scrutinize sale criteria and prepare assets for competitive bidding, pointing to a robust pipeline of upcoming privatizations beyond those that have already been announced. In summary, Kazakhstan's economic landscape is poised for transformative growth with the continued execution of this ambitious, forward-thinking plan.
The ongoing execution of the Comprehensive Privatization Plan 2021-2025 is not only inviting foreign investment but also fostering competition within the domestic business landscape. The sale of significant assets, such as Tele2 and the planned sale of Qazaq Air, underscores the government's commitment to finance these key industrial projects, thereby strengthening Kazakhstan's economy and increasing its global competitiveness.
