Export Credit Agency of Kazakhstan expands cooperation with global trader Trafigura
A working meeting with the management of the multinational corporation Trafigura Pte Ltd, the world leader in the wholesale trade of metals and energy resources, was held at the office of the Export Credit Agency of Kazakhstan (ECA).
During the negotiations, the parties discussed the prospects for the implementation of export-oriented projects in Kazakhstan. Particular attention was paid to the integration of domestic manufacturers into global supply chains through ECA support tools.
The meeting was attended by Timur Onzhanov, Deputy Chairman of the Management Board of NIE Baiterek JSC, representing the interests of the Sole Shareholder of ECA. In his speech, he emphasized the renewed strategic role of the Holding as a proactive development institution.
"Baiterek Holding provides comprehensive support for system-building projects that have a positive multiplier effect on the national economy. We have all the necessary tools to provide guarantees and financial support, especially in the manufacturing sector. Synergy with such large international traders as Trafigura will allow Kazakhstani enterprises not only to increase production capacities, but also to enter new highly profitable markets. Today, Trafigura not only carries out trading operations, but also actively invests in the economies of individual countries," T. Onzhanov noted.
Nicolas Jaubert, Head of Trafigura's Structural Finance department in the EMEA region (Europe, Middle East and Africa), highly appreciated the investment attractiveness of Kazakhstan, the reliability of its economic system, as well as the potential for cooperation with domestic manufacturers.
In particular, interest was expressed in cathode copper, a high–purity product of electrolytic refining (99.95–99.99% Cu), which is the basic raw material for the production of copper wire rod, cable and wire products and copper alloys. In addition, the parties discussed the prospects for cooperation in the supply of Kazakh products in the fields of mechanical engineering, metallurgy and the agro-industrial complex.
Madina Yerzhanova, Deputy Chairman of the ECA Management Board, presented risk minimization tools for export operations. In particular, the mechanism of advance payment insurance was presented in detail.
This mechanism allows an international trader to safely advance Kazakhstani producers. In case of non-fulfillment of delivery obligations or when the supplier has not returned the advance payment, EKA reimburses the trader for the amount of the advance payment. This removes financial risks from the foreign partner and provides domestic enterprises with the necessary working capital to fulfill orders.
This tool allows an international trader to make safe advances to Kazakhstani manufacturers. In case of non-fulfillment by the exporter of obligations for the delivery of goods or non-repayment of advance funds, the Agency guarantees a refund of the advance amount in favor of the foreign buyer. The introduction of such practices not only eliminates the financial risks of foreign partners, but also provides domestic manufacturing enterprises with the necessary working capital for the timely execution of export contracts.
Following the meeting, the parties expressed mutual substantive interest in further developing joint projects and confirmed their readiness to develop long-term and mutually beneficial cooperation.
For reference: Trafigura Pte Ltd., founded in 1993, is one of the world's largest independent suppliers of metals and energy resources. The company's global network covers more than 50 locations worldwide.
