Kazakhstan and Afghanistan Make Trade Deals Worth Millions

Gulaikhan Myrzagalieva
Gulaikhan Myrzagalieva, left, negotiates trade deals at the business-to-business event in Kabul.
KAZNEXT Invest
Kazakhstani products aid Afghanistan's economic rehabilitation
“The visit to Kabul has evoked a great interest from Afghani businessmen in Kazakhstani products.”

When top managers from 14 Kazakhstani companies visited Kabul, Afghanistan, in July 2013 to present and promote products and goods made in Kazakhstan, more than $7 million in deals between entrepreneurs from the two countries were preliminarily negotiated at the meetings.

The meetings were part of a trade exchange organized by USAID's Regional Economic Cooperation Project.

Igor Denissenko, director general of the Dikanshy company, participated in the business-to-business meetings in Kabul and signed a $2 million, one-year contract to supply flour to Afghanistan. The first lot of 408 tons of flour valued at more than $130,000 was delivered to the Afghan trading partner in October 2013.

“Kazakhstan contributes a lot to stabilization of Afghanistan," said Denissenko. "This trade exchange is proof of the support provided by entrepreneurs to economic rehabilitation of Afghanistan and its involvement into regional [economic] integration processes.”

Maslodel LLP is one of the largest food producers in Kazakhstan, offering more than 100 types of food items including butter, vegetable oil, mayonnaise, margarine, condensed milk, tomato paste and ketchup. As part of the trade exchange, Gulaikhan Myrzagalieva, commercial director of Maslodel, negotiated trade deals with Afghan entrepreneurs and signed a contract to supply 1,500 tons of vegetable oil per month to an Afghan company, for a total value of $650,000. The contract is for one year, but the Afghan company is planning to extend the arrangement for an additional 10 years. The first part of vegetable oil, valued at $130,000, was delivered to Afghanistan in November 2013.

“Kazakhstan and Afghanistan have longstanding trade relations. I am very grateful to USAID, as the visit to Kabul has evoked a great interest from Afghani businessmen in Kazakhstani products and made it possible for Kazakh entrepreneurs to export goods to Afghanistan,” said Myrzagalieva.

Food products imported by Afghanistan from Kazakhstan, namely flour and vegetable oil, are of higher quality than similar products imported from other trading partners. For example, Kazakhstani flour is of superior quality because it is produced from hard wheat.

KazStroiSteklo LLP, a Kazakh glass-producing company that also participated in meetings in Kabul, signed letters of intent with Afghan counterparts to supply armored glass valued at more than $5 million. Biopharm LLP, a Kazakh pharmaceutical company, established business contacts with Afghani counterparts and is now negotiating a pilot contract to supply $300,000 worth of medicines.

USAID supports mutual endeavors of the two countries to expand trade ties and to deepen economic relations between Kazakhstan and Afghanistan. The Regional Economic Cooperation Project facilitates trade among Central Asian countries and Afghanistan as well as large trading partners of these countries. The project, which has been operating in Central Asia since October 2011, will continue until March 2015.

Last updated: April 16, 2014

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