Government • 05 March, 2019

Particular attention paid to development of construction, light and furniture industry — MIID

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At the regular meeting of the Government chaired by Prime Minister Askar Mamin, a set of measures for developing the manufacturing industry as part of the “economy of simple things” was considered.

On behalf of the Head of State, 400 billion tenge was allocated to support the manufacturing industry under the lending program. The development and support of business projects in the economy of simple things will allow to create 16 thousand jobs by 2025 and reduce the share of product imports from 59% to 37%. This will bring 1.1 trillion tenge of taxes to the budget.

According to the Minister of Industry and Infrastructure Development Roman Sklyar, special attention in the economy of simple things is paid to the development of the construction, light and furniture industry.

“To solve these problems, roadmaps for the development of these industries have been developed. They envisage measures to develop the resource base, protect the domestic market by improving the measures of customs administration and technical regulation, create national standards aimed at improving the quality of goods and services,” said Sklyar.

In order to increase the sales of products of these industries and reload existing enterprises, in regulated purchases, an annual increase in the share of local content by 20% is additionally proposed. At the same time, the supplier will have to confirm its production capacity with an Industrial Certificate.

In addition, measures will be taken to increase the representation of domestic goods in retail chains, to provide enterprises with highly qualified personnel, to attract investments in these industries to implement projects using advanced technologies.

In general, the roadmaps provide for the implementation of more than 150 events, according to which, in the medium term, the share of local content for manufactured goods will increase by more than 50%, the quality of products will increase and the volume of counterfeit products will decrease.

“The implementation of the proposed measures will allow to increase the production of building materials, products of light and furniture industry by 73 billion tenge annually,” said Sklyar.

Minister of Agriculture Saparkhan Omarov, in turn, reported that the main task of the agro-industrial complex is to ensure food security, the most important component of which is the food industry. 200 billion tenge was allocated for lending to the agro-industrial complex. Credit funds will be provided for the production of about 118 priority types of processed agricultural products. Of the 200 billion tenge, 100 billion tenge will be spent on loans to projects in the processing of agricultural products, and 100 billion tenge — on agricultural production, which serves as raw materials for food and other manufacturing industries.

In order to reduce the credit load on the subjects of the agro-industrial complex, the interest rate on loans issued will be subsidized. The Ministry of Agriculture have made necessary changes to the rules for subsidizing interest rates.

Roadmap for the Development of the Food Industry Includes 26 events in six main blocks:

  • development of raw materials base;
  • technical and technological re-equipment of enterprises;
  • development of enterprise infrastructure;
  • development of logistics infrastructure;
  • scientific support;
  • promotion of domestic products in the domestic and foreign markets.

“Over the past six years, the growth of the food industry has averaged 1.8% annually (30 billion tenge), an increase in agricultural production by an average of 3.2%. The inflows will increase production growth by 25 billion tenge annually, which will ensure the dynamics of the industry (food and raw materials production) up to 6%,” said Omarov.

Chairman of the Board of the Association of Financiers of Kazakhstan Elena Bakhmutova informed about the positive dynamics of the implementation of the lending program for priority projects.

“So, as of March 4, 2019, 116 projects for 72.2 billion tenge were submitted for consideration. Of these, eight projects for 5.9 billion tenge have already been approved. Eight second-tier banks intend to participate in the implementation of the program, the reception of documents has already begun in seven of them,” Bakhmutova noted.

Akims of Almaty Bauyrzhan Baibek, Shymkent — Gabidulla Abdrakhimov reported on the current situation and prospects for the development of the economy of simple things in the regions. Deputy Prime Minister Zhenis Kassymbek spoke during the consideration of the issue.

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