Kazakhstan to support its businesses
The Kazakh government will commit 421 billion tenge (US$1.08 billion) to support businesses as part of Business Road Map 2025, said Minister of National Economy Ruslan Dalenov, reported the Prime Minister’s press service. The new programme, regulating business development and state support measures in this area, will be adopted by the end of November, The Astana Times writes in the article Kazakhstan to allocate more than $1 billion to support businesses through 2025. “This year, Business Road Map 2020 is nearing its end. Therefore, we prepared the new project for the programme. It preserves the goals and tasks. The instruments of support were enhanced and their efficiency and affordability have been improved,” he said in addressing the government meeting.
State grants offered to businesses will be increased from three million tenge (US$7,688) to five million tenge (US$12,813) and the volume of loans for working capital will be upped from 60 million tenge (US$153,750) to 360 million tenge (US$922,504). “Secondly, the access to financing will be expanded. For that purpose, we are introducing subsidies and guarantees of loans provided by microfinance organisations. Third, the requirements to the programme participants in terms of increasing employment and tax contributions are enhanced,” said Dalenov. Businesses will also have access to assistance and mentorship at all stages of development, including training, document aid for loan applications and support measures.
Prime Minister Askar Mamin commended the results of the Business Road Map 2020 programme. “Strong business is one of the important factors to ensure a sustainable economy, according to Kazakhstan’s First President Nursultan Nazarbayev. In May, the head of state, Kassym-Jomart Tokayev, set the task to strengthen the role of small and medium-sized businesses and bring their share in the economy to at least 35 percent by 2025. By 2050, we need to reach 50 percent. Huge work is being undertaken to achieve these figures, including changes to the legislation,” he said.
Since 2010, the Business Road Map has created more than 94,000 jobs and preserved more than 342,000. The share of small and medium-sized businesses in the gross domestic product grew from 24 percent in 2015 to 28.4 percent in 2018 and the total volume of goods and services produced increased by 10 trillion tenge (US$25.6 billion) from 13.3 trillion tenge (US$34 billion) to 23.4 trillion tenge (US$59.9 billion). Officials expect the processing industry share of the country’s gross domestic product will reach 13.4 percent from the current 11 percent. The country currently has 1.3 million small and medium-sized businesses, growing by 400,000 since 2015. Nearly 3.3 million people are employed in the enterprises.
The nation’s efforts have been recognised in the latest World Bank Doing Business Report. Kazakhstan ranked 25th of 190 economies and has advanced significantly over the past four years. The government has spent 282 billion tenge (US$722.6 million) on the programme since 2015. The measures enabled financing more than 16,000 small and medium-sized businesses, train more than 10,000 entrepreneurs, produce an output worth 15.5 trillion tenge (US$39.7 billion) and ensure tax payments of nearly one trillion tenge (US$2.56 billion).
“The programme participants can receive loans for 7.1 percent. The maximum sum of the loan is 2.5 billion tenge (US$6.4 million). There is an opportunity to receive guarantees for 60 million tenge (US$153,750) and grants up to three million tenge (US$7,688). The measures are in place to train citizens in the basics of business. You can get advice and take training courses and internships,” said Dalenov.