The Prime Minister of Kazakhstan

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Bakytzhan Sagintayev gets acquainted with activities of the largest SMEs in Almaty

24 October 2017, 15:45

Today during a working visit to Almaty, Prime Minister of the Republic of Kazakhstan, Bakytzhan Sagintayev familiarized himself with the progress of implementation of the President's instructions on cardinal improvement and expansion of the business environment.

First of all, Bakytzhan Sagintayev visited Magnum Cash & Carry LLP, where he got acquainted with the activities of the trade network. The Prime Minister inspected sections of household and food products, bakery, confectionery, fruit and vegetable and meat and dairy products. In his turn, the head of Magnum Cash & Carry Alexander Garber explained about the sale of food products of local producers and the formation of retail prices for socially important goods.

Magnum Cash & Carry is the largest retail network in Kazakhstan, established in 2007. It is worth noting that, starting from a single shopping center in Almaty with an area of ​​more than 7 thousand m², over the nine years the network has grown to 28 stores in five cities of the country. According to the company, its share in the retail market of civilized trade in Almaty is about 50%. The daily flow of customers in the stores of the network averages more than 61 thousand. The share of goods of Kazakhstan content is 42-47% depending on the season.

After that, the Prime Minister visited the enterprise for producing fat-and-oil products of LLP “EFKO Almaty”, where he checked the reconstruction and modernization of the fat and oil complex. It is worth noting that thanks to the update, the company managed, in the shortest possible time, to establish the production of fats and margarines that meet the highest world standards. This allowed not only to cover the internal needs of the republic, but also to start deliveries to the countries of Central Asia and China, and the status of Kazakhstan changed from a "net importer" to a "net exporter" of fat and oil products.

When EFKO Almaty successfully implemented the project to create an oil and fat cluster, the volume of investments in which exceeded 11 billion tenge, it was included in the Almaty Industrialization Map and the Business Roadmap 2020 program.

According to the head of the company, Nurzhan Kozhamuratov, despite the difficult macroeconomic situation, the enterprise is increasing production and export of fat and oil products, which will allow Kazakhstan to become its key supplier in Central Asia by 2025.

The next object of the visit within the framework of the working visit to Almaty was the enterprise for the development, production, repair, modernization of military equipment and weapons –AlmatyEnergoServise LLP, where Bakytzhan Sagintayev got acquainted with the production process. The modern approach is applied here: innovative methods of prototyping and production, own 3D-laboratory, introduction and use of additive technologies.

The company's products are in demand not only in Kazakhstan, but also in Russia, Vietnam, the United Arab Emirates, Bangladesh and the Sudan. It is worth noting that the company is included in the Republican industrialization map. In addition, it is a participant of the Business Support Map and "BRM-2020".

To date, the Government is carrying out a comprehensive work to attract business to the implementation of the Third Modernization of the Economy, which was declared by the Head of State. This work is primarily aimed at the widespread adoption and use of digital technologies by businesses in all priority sectors of the economy.

In particular, in this direction, work is under way to create a system of appropriate incentives for entrepreneurs, among them are the improvement of the regulatory framework, the reduction of costs for the digital transformation of enterprises, the creation of favorable conditions for attracting investments in digital projects.

At the same time, the Government continues to support business in the framework of new state programs: the development of agribusiness and the development of productive employment and mass entrepreneurship, which also contain business support tools, including in the form of concessional lending.

For reference: The volume of retail trade turnover in Almaty increased by 4% and amounted to 1,752.7 billion tenge. In total, 263,660 small businesses were registered in the city, which is 7.7% higher than in the last year. The number of active SMEs is 173,377, which is 5.7% higher than in the same period in 2016. The number of employees in the SME for the II quarter of 2017 was 572.5 thousand people, which is 0.5% higher than in the last year.

For the second quarter of 2017, the volume of SME output reached 2346.9 billion tenge, with growth of 20.7% compared to the same period of the last year.

In 2017, 4.4 billion tenge was allocated for the implementation of a unified program of business support and business development "Road map of business - 2020". A total of 205 projects were approved under the program, including 107 projects on subsidizing, 33 – on guarantees, 65 – on grants.

In the framework of the "Zhibek Zholy" program, 66 projects were financed for a total of 4 billion tenge, 818 jobs were saved, and 202 are planned to be created. At the expense of funds, returned by the participants of the first stage (2015), 37 projects have been additionally supported for 2.2 billion tenge. In 2017, 2.7 billion tenge was allocated for the implementation of the program.

Also, from the local budget, funds were allocated to finance regional programs "Almaty-Onim", "Almaty-Innovation" and "Almaty-Tourism".