The Kazakh government plans to attract $1 billion in investment next year to support regional startups and cutting-edge technologies. A new venture capital fund will be created for this purpose.
Kazakhstan, the largest oil producer in Central Asia, has seen the development of local fintech companies, including companies such as Kaspi.kz, which is listed on the US stock exchange. At the same time, the government is trying to reduce its dependence on energy revenues. President Kassym-Jomart Tokayev has set a goal of reducing the role of the state in the economy and attracting $150 billion in foreign investment by 2029.
The newly created Kazakhstan Venture Group plans to invest in global and local venture funds that finance the latest technologies, including artificial intelligence, the minister of digital, innovation and aerospace said.
“We want startups operating in the fintech, medtech and artificial intelligence sectors operating in the region to come to Kazakhstan,” Minister Zhaslan Madiyev said in a telephone interview. He noted that the fund will support these startups and help the most promising ones reach the level of "unicorns" (billion-dollar companies).
Investment Plans
Kazakhstan will begin attracting funds from the first half of 2025. The national development holding Baiterek will initially invest $30 million. The minister added that an agency affiliated with the ministry that will manage the fund has already reached preliminary agreements with private investors for more than $90 million.
Madiyev said that 30% of the fund's funds will be invested in the Central Asia and Caucasus region, and the rest in the United States and other international markets.
In addition, the Kazakh government is also negotiating with Middle Eastern funds and global financial institutions to attract investments for this new initiative.
This initiative is an important step towards diversifying Kazakhstan's economy and becoming a regional hub in the field of technology.
