Government leader advocates for government backing for major corporations
Fostering Local Production: A Look at Kazakhstan's Domestic Value Initiative
In the spirit of strengthening domestic industries, Prime Minister Olzhas Bektenov has stressed the need for large enterprises to develop and implement Programs of domestic value creation, surrounded by a ring of small and medium-sized businesses. These suggestions, as reported by Vechernyaya Astana, will open the door to state support.
The objective of these domestic value creation programs is to establish conditions that foster direct procurement from domestic enterprises, thereby encouraging the expansion and creation of new production facilities through localization. This approach, PM Bektenov explains, aims to build a self-sustaining production cycle within the country, diminishing imports and costs, and bolstering the competitive edge and demand for domestic goods.
The benefits of these programs extend beyond setting up new production facilities. They also involve the transfer of new technologies, the development of science, the creation of new jobs, and the nurturing of new competencies, all of which contribute positively to the country's export potential, economic diversification, job growth, and improved living standards.
For large enterprises, these programs provide a secure domestic market, enabling them to secure contracts and supplies more dependably. Additionally, by focusing on domestic production, these enterprises can diversify their supply chains and minimize reliance on foreign imports.
Small and medium-sized enterprises (SMEs) stand to gain significantly from these programs, too. Access to infrastructure support, coupled with reduced initial investment costs, encourages entrepreneurship and employment opportunities. By operating within designated industrial zones, SMEs can bolster their competitive production capacities and make substantial contributions to the national economy.
To take part in these initiatives, SMEs typically need to meet specific criteria, such as operating within designated industrial zones, where at least 80% of the space is reserved for SME occupancy. Additionally, there are unified annual interest rates offered through support programs like the leasing initiative by the Industrial Development Fund to help SMEs. Large enterprises often require strategic partnerships with financial institutions or government aid to execute import substitution projects effectively.
In conclusion, Kazakhstan's domestic value creation programs are essential for stimulating local manufacturing, fostering collaboration between large enterprises and SMEs, and driving sustainable economic growth. The country can look forward to increased self-reliance, stronger domestic industries, and elevated living standards as a result of these initiatives.
- The domestic value creation programs in Kazakhstan, as mentioned by Prime Minister Bektenov, are linked to the country's policy-and-legislation, aimed at encouraging local businesses, especially SMEs, through infrastructure support and reduced costs.
- As these programs promote direct procurement from domestic enterprises, they are expected to have a significant impact on the general-news landscape, including job growth, economic diversification, and enhanced competitiveness of domestic goods.
- In the realm of business and finance, these initiatives could lead to a shift in Kazakhstan's trade, as domestic enterprises, both large and small, diminish their reliance on foreign imports while fostering partnerships with financial institutions and the government for effective import substitution.
