Japanese Investors Invited To Join Samruk-Kazyna Fund’s Privatization Program

Wealth Fund Rid of `Pocket Change' Readies Flurry of Kazakh IPOs

Dauren Tasmagambetov, Director of the Privatization and Assets Restructurisation of JSC “Samruk Kazyna” National Welfare Fund, addressed the session of the Joint Commission of governmental and private sectors of Japan and Kazakhstan for economic cooperation on Monday.

Speaking of the principles of implementation of the Privatization Program, Tasmagambetov said the fund is committed to secure equal rights and transparency of the process.

“Participation of private investors in the company’s capital will have a number of advantages for Kazakhstan. Among other things it will enhance the level of transparency and effectiveness of the company, ensure access to know how, transfer of management technologies and capital for the development of companies, stimulate the development of small and medium-sized business and create a powerful impulse for the development of financial institutes,” he added.

Most OECD member states have gone through privatization having considerably decreased the role of the government in economy and opened access to private capital. For example, in Poland and Germany the share of government participation in the GDP does not exceed 13-14%. In Canada and the U.S. this figure amounts to only 3-6%. Kazakhstan intends to decrease the share of government in its economy from 70% to 15% of GDP.

In accordance with the presidential decree, JSC “Samruk-Kazyna” is selling over 200 of its assets within the framework of the large-scale state privatization program for 2016-2020. The main objective of this program is to enhance the effectiveness of Kazakhstan’s economy by decreasing the share of government participation in economy. Seven largest companies of the fund, namely JSC “NC KazMunaiGas”, JSC “NC Kazakhstan Temir Zholy”, JSC “NAC “Kazatomprom”, JSC “Samruk Energy”, JSC “Air Astana”, JSC “Kazpochta” and JSC “Tau-Ken Samruk” will join the IPO Program until 2020.

National Welfare Fund “Samruk-Kazyna”, is a sovereign wealth fund and joint stock company in Kazakhstan which owns, either in whole or in part, many important companies in the country, including the national rail and postal service, the state oil and gas company KazMunayGas, the state uranium company Kazatomprom, Air Astana, and numerous financial groups. Bakytzhan Sagintayev was appointed as Chairman of the Board of directors of JSC Samruk-Kazyna on 28 September, 2016. President Nazarbayev fired his son-in-law, Timur Kulibayev, from his position as Chairman of the Board of Samruk-Kazyna after Zhanaozen massacre. December’s clashes came after months of strikes in Kazakhstan’s energy-rich Caspian Sea region. They coincided with the 20th anniversary of the country’s independence and were the most violent in its post-Soviet history.