Investment Environment of the Agro-Industry Sector in Kazakhstan

In 2003, Kazakhstan newly enacted the Act for New Foreign Investment after abolition of the Act for Foreign Investment and the Law on State Support for Direct Investment. Under the new law, there is no discrimination between domestic and foreign investors. Investment favors are provided in priority sectors, which include following sectors: industrial infrastructure, processing industry, agriculture, agro-industry, housing, the social sector and tourism infrastructure. The incentives for direct investments in the priority sectors are: property tax and income tax exemptions for up to five years respectively, and exemptions or reductions in customs duty on materials necessary for completion of the investment project.

Review of Agriculture and Agro-Industry Sector in Kazakhstan

Although the share of agriculture (and agro-industry) out of GDP is only 8 percent, agriculture (and agro-industry) is a very important sector in Kazakhstan, since over 40 percent of population still resides in rural areas and 20 percent of labor is employed by the agricultural sector.