The Prime Minister of Kazakhstan

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It is planned to launch 18 new industrial projects for a total of 399 billion tenge in December — Zh. Kassymbek

31 October 2017, 10:30

Today, during the meeting of the Government of Kazakhstan chaired by the Prime Minister Bakytzhan Sagintayev, the implementation of the State Program of Industrial and Innovative Development for nine months of 2017 was reviewed.

Minister for Investments and Development, Zhenis Kassymbek reported that the volume of industrial production for the first nine months of this year amounted to 6.5 trillion tenge, an increase of 5.7% compared to the same period of the last year. At the same time, growth is observed in the pharmaceuticals, ‘light industry’, metallurgy, machine building, oil refining, food production and chemical industry.

The main target indicators of the state program are also positive. Exports of manufacturing industry in the eight months of this year increased by 23.1% compared to the same period of the last year and amounted to $9.9 billion.

Significant growth is observed in the sectors of agrochemistry, oil refining and ferrous metallurgy. To date, Kazakhstan's manufacturing products are exported to 115 countries. For some commodity positions, new markets were opened.

For the first time, cars "Asia Auto" were exported to China, "Saryarka Automotive Industry" - to Tajikistan. The products of agricultural machinery – harvesters, produced by DonMar, have been exported to the Russian market for several years.

More than 380 exporters receive financial and service support annually.

In order to create a system to support non-primary exports this year, the MNE RK developed and adopted a National Export Strategy.

To improve the investment climate, the National Investment Strategy for 2018-2022 was developed and approved in the framework of the fulfillment of the instructions of the Head of State jointly with the World Bank. There is a specialized national company for investments, Kazakh Invest, with a network of foreign representatives and regional branches.

For seven years, more than $26 billion of foreign direct investments have been attracted in the manufacturing sector. The share of manufacturing in the structure of investments in 2016 increased to 19.5%. The growth trend continues this year, the volume of investments in the manufacturing industry grew by 3.5% and amounted to 599 billion tenge.

The labor productivity in the full circle of enterprises in the first quarter of 2017 increased by 16.1%. Most of the growth occurred in the priority sectors: oil and gas chemistry, ferrous metallurgy, oil refining.

"An objective picture for all enterprises, including small, medium and large, will be formed following the results of the current year. Taking into account the current development trend, it is possible to forecast that, by the end of the year, the indicator will not be lower than the level of the previous year," the minister stressed.

In general, the regions have a positive trend in all indicators.

According to Zh. Kassymbek, the implementation of the program influenced the change in structure of the economy and industry. Thus, the contribution of the manufacturing sector to the development of the economy (GDP) increased from 10.1% in 2015 to 11.9% in the first half of 2017, in industry – from 31.8% in 2010 to 40.7% in the eight months of 2017, in exports – from 27.9% in 2010 to 32.7% in the eight months of 2017.

The minister also noted that new production is being launched every year under the program.

"Only in seven years and nine months of 2017, 1080 projects worth 5.5 trillion tenge have been commissioned within the Industrialization Map, 101 thousand permanent jobs have been created," Zh. Kassymbek said.

At the same time, in the first nine months of 2017, 52 projects worth 800 billion tenge were introduced with the creation of 4,500 permanent jobs. Until the end of 2017, in the regions, it is planned to complete more than 80 projects worth over 700 billion tenge with the creation of about 10,000 permanent jobs.

Also, according to the minister, special control now includes work on 72 problem projects. For each project, a roadmap was adopted.

"Enterprises were provided with state support measures such as search for investors, concluding subsoil use contracts, lending through STBs, assistance in marketing products to the enterprises of the region," Zh. Kassymbek noted.

Now, 11 special economic zones (SEZ) and 22 industrial zones (IZ) work in the country.

In total, since the creation of the SEZs, 157 projects for the amount of more than 682 billion tenge have been launched, more than 11,600 jobs have been created.

This year, it is planned to launch 24 more projects for 100 billion tenge, with the creation of three thousand new jobs, and 20 more projects will begin construction.

115 projects for the amount of 100 billion tenge were launched at the IZs, about eight thousand jobs were created.

Also, work is under way to amend the legislation on special economic and industrial zones in terms of simplifying the procedures for allocating land plots, granting preferences, and reducing administrative barriers.

In conclusion, Zh. Kassymbek informed that on December 6, at the Day of Industrialization, the results of industrialization for the current year will be summed up.

"Within the framework of the Teleconference, we plan to launch 18 projects for a total of 399 billion tenge. Also we plan to show TV commercials on 26 projects," Zh. Kassymbek concluded.

Akim of Zhambyl region, Karim Kokrekbayev, akim of Almaty, Bauyrzhan Baibek, deputy akim of Aktobe region, Akim of East Kazakhstan region, Danial Akhmetov also spoke during the meeting.

Following the discussion Bakytzhan Sagintayev noted that in the first nine months of this year, good progress has been achieved in implementing the state program of industrialization. The Prime Minister expressed confidence that by the end of the year, the regions will overcome the backlog in investments in fixed assets and will be tightened by other indicators.

First Deputy Prime Minister, Askar Mamin, was instructed to take all these issues under personal control.