Yerkin Tatishev Of Kusto Group's Call For Economic Revitalization: "It Is A Lost Decade"

In a recent address at CFO Summit 2024, Yerkin Tatishev, the leader at the helm of Kusto Group, lamented what he referred to as a “lost decade” for Kazakhstan’s economy.

Tatishev’s remarks shed light on the challenges faced by active people striving to propel economic growth in the country.

Over the past ten years, Yerkin Tatishev noted that there has been a concerning stagnation in the pace of economic development, hindering the aspirations of entrepreneurs and investors alike.

As the head of Kusto Group, he is intimately familiar with the intricacies of Kazakhstan’s business scene, and his insights carry weight within the industry.

Central to his concerns is the risk of social inequality exacerbating amidst economic stagnation. Drawing parallels with Argentina’s socioeconomic divide, where stark contrasts exist between urban and rural populations, Yerkin Tatishev emphasized the importance of equitable economic progress across all regions of Kazakhstan.

“We should not turn into 10 cities of the country, so we need the support of the regions. They must have some kind of competition. Regions need to be given the opportunity to compete.

For the development of small settlements, there should be its own policy, perhaps a separate tax proposal. For example, CIT and VAT should be lowered there and raised in cities.

We need to solve it by trial and error,” the Kusto Group founder said at the CFO Summit in March 2024, underscoring the need for balanced regional development strategies.

IMAGE: UNSPLASH

Kusto Group’s Yerkin Tatishev: “We Need To Open This Key”

Addressing the challenges at hand, Yerkin Tatishev emphasized the importance of eliminating inefficient market players to foster economic growth. Moreover, despite budget constraints, he underscored the imperative of investing in enhancing the skill sets of the workforce, recognizing the critical shortage of qualified professionals despite an ample labor supply.

He also criticized the ineffectiveness of the public-private partnership (PPP) mechanism, recounting an instance where he encountered prolonged bureaucratic hurdles. He advocated for simplifying procedures in such domains to facilitate seamless entry for businesses.

“We, of course, as athletes, have an interest in working out even in the gym, or in the room, as it was during the pandemic. We are a private Kazakh business, give it to us – do not give it to us – we will do something.

But, of course, we could have done much more. The lost decade that the World Bank referred to in its report when talking about previous years is a lost decade of my life as well. It is a lost decade of active people who want to do something.

We need to open this key, we live on our land and want to be active,” the Kusto Group founder stated.

Kusto Group’s Diverse International Portfolio

Kusto Group, under Yerkin Tatishev’s leadership, has been at the forefront of efforts to revitalize Kazakhstan’s economy. With a diverse portfolio of projects spanning various sectors, including real estate, energy and agriculture, the conglomerate plays a pivotal role in driving innovation and growth.

One of Kusto Group’s flagship projects in Kazakhstan is Koktobe City, a sprawling urban development that aims to redefine modern living in the region. Featuring state-of-the-art residential complexes, commercial spaces and recreational facilities, Koktobe City embodies Kusto Group’s commitment to creating vibrant, sustainable communities.

Additionally, Kusto Group has made significant investments in Kazakhstan’s energy sector through ventures like KazPetrol and KazBeef. These initiatives not only contribute to the country’s energy security but also stimulate economic activity and job creation in the region.

Beyond Kazakhstan, Kusto Group’s footprint extends across Asia, with landmark projects such as Diamond Island in Vietnam. This ambitious waterfront development epitomizes Kusto Group’s innovative approach to urban planning and underscores its role as a catalyst for economic growth in the region.

In 2014, Kusto Group also expanded its global reach with the acquisition of Tamobur, a leading paint company in Israel. This acquisition marked a significant milestone for Kusto Group’s international expansion strategy and underscores its commitment to driving growth through strategic partnerships and investments.