Economy • 01 August, 2019

Industry Development Fund of Kazakhstan to be created

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Industry Development Fund of Kazakhstan to be created under Ministry of Industry and Infrastructure Development, reports primeminister.kz.

 

The fund will allow businesses to develop capital-intensive industries in mechanical engineering. This was announced by the Chairman of the Union of Machine Builders of Kazakhstan Meiram Pshembayev at a press conference in the Government.

Engineering provides the country's economy with means of production, contributes to the development of all other manufacturing industries, fuel and energy, transport and logistics, extractive sectors of the economy and agriculture. The industry has moved from the production of components and spare parts to the production of final products: diesel locomotives, electric locomotives, passenger and freight cars, trucks and cars, buses, combine harvesters, pumping equipment, elevators.

Since 2000, Kazakhstan's machine-building production volume has increased 24 times, amounting to 1.1 trillion tenge at the end of 2018.

As Pshembayev noted, the adoption of the Roadmap is an important event for domestic engineering, a strategic vision for the development of the industry for the medium term. The document is based on three pillars.

The first is the adoption of the Law on Industrial Policy, which will contribute to a balanced industrial policy throughout the country. State support measures will be centralized in one law.

The second is the creation of the Industry Development Fund of Kazakhstan under the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan.

The fund will allow businesses to develop capital-intensive industries in mechanical engineering and finance projects in the manufacturing sector, including engineering.

Such funds have successfully operated for several years in Russia, Belarus, and the OECD countries, providing loans at a rate of 1.4% per annum for leasing projects and 1% for scientific and technical developments, increasing labor productivity, and innovative products. The effectiveness of the Fund will be determined by the fact that the general policy of supporting industry will be concentrated in one hand — under the Ministry of Industry and Infrastructure Development. Clear monitoring will be carried out.

Third, the introduction of tax preferences for enterprises in order to modernize existing capacities, as well as further increase the export potential of domestic enterprises.

The measures prescribed in the Roadmap for the Development of Automotive Industry will stimulate that by 2024 the total production should be brought to at least 2 trillion tenge, labor productivity per worker from the current $12 thousand should be increased to $24 thousand, and the export of engineering products was increased to 30%.

“The roadmap has been adopted in order to increase the competitiveness of manufacturing enterprises. We are ready to make a worthy contribution to the development of industrialization of Kazakhstan,” said the chairman of the Union.

 

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