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Electric cars and wines to push the Italian boom in Kazakhstan

October 17, 2019


Abstract : The ambassador in Astana analyses the key aspects of the Made in Italy export record rise (+74%) in the Asian country, which follows the performance in 2018 (+72%). Cars and electrical and power sector components increased fivefold the export share

MILAN, Oct. 14 (Class Editori) – In order to understand the Italian exports success in Kazakhstan – raised by 74.9 percent in the first 7 months of this year at almost 850 million euros, after the 2018 performance compared to the year before (+72 percent) – it is above all useful to look at how the politic landscape is after 4 months from the presidential elections; a substantial stability even though the democracy modernization process could raise some uncertainties.  

In this framework, the Italian exports trend and the presence of Italians enterprises in the country depend both on contingent reasons and structural aspects related mainly to investments in this market.

The acceleration of the economy diversification process implies more productions toward a natural resources transformation, which need more and more Italian equipments, the main Made in Italy flagships.  

At the same time, the medium-term trend of the Kazakh authorities to attract technology transfers from Italy favors a gradual substitution of machinery imports and other products with local productions. This trend creates opportunities for Italian businesses to establish joint ventures with local businesses, in sectors such as the oil industry and the realization of petrochemical districts.

According to a study conducted by the Asian development bank, other opportunities are opening up in the international logistics sector, driven also by the Khorgos dry port success, and by the agriculture. ( www.adb.org/publications/kazakhstan-economic-diversification)

In order to sell, it is more and more necessary to invest. This is the case especially for sectors such as the agri-business, that is why local authorities invites Italian enterprises in the sector to invest in Kazakhstan for the wheat processing for the production of pasta. The sector offers, among other things, huge opportunities for Italian agronomists for advisory activities and for businesses wishing to invest or to transfer technology.

The sector structure analysis highlights the positive performance of capital goods, machineries in particular (+494 percent) and intermediary industrial goods driven by orders for government investment programs in the power sector. As a matter of facts, engine exports and electrical components marked a doubling for transformers and electrical converters is even better (+122 percent). Again, interesting growth for pharmaceutical products (+36 percent).

The consumer goods sector registered a gradual return of the Made in Italy products and accessories demand after the decrease in the period 2015-2017, caused by the devaluation of the national currency against euro and the loss of purchasing power of the middle class. During the 7 months of 2019, furniture, clothing and knitted accessories and footwear returned to grow.

However, the most interesting performance is that related to Italian wines and spumanti, in a market which is contracting but where Italian prosecco and spumante are growing in value (+35 percent) and in market shares (+55 percent).

Another factor which affected the general trend is the activism of the Embassy and ICE, which in the last 18 months organized almost 150 promotional initiatives both sector-based and of image, mainly in the three F sectors – food-wine, fashion-clothing, furniture-house – plus the automation-mechanic-tire-plastic sector.

The strategy was complex and focused on maintaining market shares in mature sectors, searching for new areas in emerging ones.

For what concerns consumer goods, in Almaty every six months it is organized an event on footwear, recently including fashion as well to create a system and answer to the changes in the high-end distribution landscape.

Essential was also the invitation of many delegations of economic operators and in some cases Kazakh institutions to the main exhibition events in Italy ((Eima, Salone del mobile, Vinitaly, Mido, Marmomac, Ipack Ima, Tecnargilla, Xilepo, Cosmoprof, Meat Tech, Micam, Vicenzaoro, Expodental,  Vitrum, Fiera Cavalli) during which they started and concluded many trade negotiations.

During these days in Moscow the Salone del Mobile hosts a qualified and large Kazakh delegation, and in the next weeks in Verona will come the first important delegation from Kazakhstan to the Fiera Cavalli.

Despite the big picture seems encouraging, some international observers believe that the inefficiencies of some administrations and of this young market need to be taken prudently.

(Source:Class Editori)

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Keyword: electric-cars Italy-Kazakhstan wines

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