Strategic National Companies of Kazakhstan Have Approved Their Business Transformation Roadmaps Under the Direction of Sovereign Wealth Fund “Samruk-Kazyna”
Astana, Kazakhstan, 29 December 2014 - “Samruk-Kazyna” JSC is a sovereign wealth fund that manages the largest strategic assets of Kazakhstan. Based on the decision of its management board the sovereign wealth fund has approved Business Transformation Programme roadmaps of a holding company and its portfolio companies.
The roadmaps define main initiatives aimed at achieving the key goals of the Programme, timeline and milestones of national companies’ involvement into business transformation for the next three years.
As per the documents above an active phase was initiated in 2014 by the Fund itself, national rail operator “Kazakhstan Temir Zholy”, the largest postal company “Kazpost”, major business units of “KazMunaiGas” oil company. In 2015 Business Transformation Programme will be initiated in global uranium producer “KazAtomProm”, electric companies KEGOC and “Samruk-Energo”.
Later business transformation will be initiated by communications provider “Kazakhtelecom”, mining company “Tau-Ken Samruk”, engineering company “Kazakhstan Engineering”, “United Chemical Company”, “Samruk-Kazyna” Real Estate Fund. Kazakhstan’s largest air carrier “Air Astana” will be involved in Business Transformation Programme in 2017.
It should be noted that the Transformation Programme of “SWF “Samruk-Kazyna” JSC that owns assets amounting to 100 billion USD in total, was officially launched on 6 October 2014 in Astana. The President of Kazakhstan Nursultan Nazarbayev took the implementation of the initiative under his personal control.
A document developed jointly with international experts is meant to be one of the main tools that enable achieving the goal of entering the list of the world’s 30 most developed countries as stated in “Kazakhstan-2050” strategy.
Transformation programme is a large scale Business Transformation Programme of the Fund and its subsidiaries. It suggests a shift from an existing operating model, where the Fund is a state-owned asset manager, towards the role of active investor.
Improvement of the Fund’s business within the Transformation Programme suggests improving investment approaches, optimizing business processes and portfolio structure, large-scale organizational changes, and red tape reduction in the Fund.
The economic benefit of “Samruk-Kazyna” JSC Business Transformation Programme is estimated at 11 billion USD.
About Samruk Kazyna
JSC “”Samruk Kazyna” Sovereign Wealth Fund” was created in 2008 as a result of a merger between “Kazyna Sustainable Development Fund” and “Kazakhstan State Asset Management Holding Samruk.” The Fund manages major strategic companies of the country with the combined asset value of close to $100 bn. Subsidiary companies include AirAstana, Kazakhtelecom, Kazatomprom, Kazmunaigaz, Kazpost and others.
The key objectives of the Fund and its subsidiaries include modernization and diversification of the national economy consistent with strategies set forth by the President of Kazakhstan, as well as Kazakhstan Industrial and Innovative Development Strategy 2003-2015. The Fund plays a key role in the country’s economy, having more than 350 employees and contributing over 2.5 bn tenge to the national GDP.
“Samruk-Kazyna” JSC is an official member of the International Forum of Sovereign Wealth Funds (IFSWF) that allowed the Fund to examine best practices of the organization’s members. Official members of IFSWF are 25 leading sovereign wealth funds of the world, in particular, Temasek Holdings (Singapore), Khazanah Nasional (Malaysia), China Investment Corporation (PRC), Qatar Investment Authority (Qatar), etc. Selection criteria are satisfied through meeting the requirements covered by Santiago Principles, i.e. financial stability and transparency, corporate governance and business performance.
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