180 new manufacturing projects worth 1.5 trillion tenge planned to be launched in Kazakhstan in 2024

Issues of import substitution development and increasing the export potential of Kazakhstani goods and services were considered at the meeting of the Council of Domestic Entrepreneurs chaired by Prime Minister of Kazakhstan Alikhan Smailov.

Head of the Government noted that due to the measures taken in recent years there has been an increase in the volume of exports of manufacturing industry. At the same time, Kazakhstan has sufficient potential to organize local production of a significant part of imported goods.

"In this work it is important to maximize the use of our own personnel, raw materials and goods. In other words, everything that is called in-country value. The government will continue to create favorable conditions for the development of competitive enterprises," Alikhan Smailov said.

During the meeting with the participation of the leadership of the central government agencies, akimats and national companies, representatives of Atameken and business discussed issues of technical regulation, certification, transfer and introduction of advanced technologies, localization and decarbonization of production, increasing the availability of financing, providing enterprises with raw materials, government procurement and state support measures, improvement of legislation.

Detailed comments were given by government agencies, development institutions and akimats on all topical issues raised by the business community.

In his report, Minister of Industry and Construction Kanat Sharlapaev noted that according to the results of 11 months of last year, foreign trade turnover of manufacturing industry amounted to $74.2 billion, increasing by 12%.

For 2023, 179 long-term agreements and offteik-contracts worth 66 billion tenge were concluded between large customers and Kazakh manufacturers. In addition, to meet their own needs, large companies (Kazakhmys, ERG, Kazzinc, etc.) are creating an SME belt around them.

To stimulate import substitution, a mechanism has been launched to supply raw materials to domestic processors at affordable prices. To date, 25 agreements have been concluded for three main types of metals such as aluminum, copper and lead. This will make it possible to deepen processing and expand the range of goods produced in the republic.

In order to ensure wide access of enterprises to the infrastructure, the activity of special economic and industrial zones is being improved.

In parallel, work is underway to implement investment projects in the manufacturing industry, aimed at both import substitution and export-oriented. At the end of last year, 170 projects worth 930 billion tenge were launched and more than 12 thousand permanent jobs were created. In particular, production of such import-dependent goods as paints and varnishes, fittings, overalls, medical furniture, heat-insulating materials, elevators, etc. has been established.

This year, 180 projects worth 1.5 trillion tenge are planned to be implemented, creating over 18,000 jobs. These include ferroalloy plant in Pavlodar region, production of truck components by iron casting in Kostanay region, forging and bandage complex in Pavlodar region, plants for production of household appliances in Almaty region and components for wind power plants in Karaganda region.

Summarizing the results of the discussion, Prime Minister emphasized that the development of import substitution is an important factor in ensuring the sustainability of the economy.

"A comprehensive approach is required here. To this end, the Government has adopted the Program for the development of intra-country value and export-oriented industries. In particular, measures are being implemented to stimulate the growth of production of Kazakh goods through the expansion of the nomenclature and additional loading of existing enterprises," Alikhan Smailov said.

According to him, important tasks are also timely renewal of fixed assets of enterprises and launch of new productions.

"In order to increase localization of production facilities, projects should be provided with affordable financing, including through off-budget sources and expansion of guarantee mechanisms. This will allow enterprises to successfully compete with foreign suppliers," Prime Minister said.

During the Government session Deputy Head of the Government Apparatus Askar Biakhmetov also reported on the progress of consideration of business issues, previously raised at the meetings of the Council of Domestic Entrepreneurs. In particular, more than 100 issues in such areas as transportation, agro-industrial complex, energy, mining and metallurgical complex, oil and gas sector and human capital development have been considered. All problematic issues of business are under control of the Government, and appropriate work is being done on them.

#Alikhan Smailov #The Prime Minister of the Republic of Kazakhstan #Council of Domestic Entrepreneurs

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