Kazakhstan's Indigenous Industries Surge under Government's Implementation of Value Chain Policy
Kazakhstan's Booming Manufacturing Sector
Alright, let's dive into Kazakhstan's exciting manufacturing growth! The nation's manufacturing sector recently experienced a whopping 7.2% increase from January to April, as revealed by Minister of Industry and Construction Yersayin Nagaspayev at a June 3 government meeting.
Check out this sick photo from gov.kz!
The growth was most prominent in mechanical engineering and the chemical industry, which rocketed by 111.2%, construction materials skyrocketed by 112.9%, and the furniture industry witnessed a massive 114.8% surge. Neat, huh?
Kazakhstan’s homegrown goods are on the rise too, especially in metallurgy, light industry, and electronics. This trend is speeding up the phasing out of imported products. Nagaspayev highlighted that local companies' priority access in regulated procurement processes plays a significant role in supporting domestic manufacturers.
To amp up local involvement, exceptions to the national regime have been introduced for approximately 4,834 items. During the first five months, an astounding 96,000 contracts worth 303 billion tenge (US$593.7 million) were signed by government agencies, triple the number from the same period last year.
Pushing for Homegrown Goods
To pump up local participation, large-scale purchasers, including government bodies and subsoil users, gotta step up their game. They'll need to create and execute programs aimed at boosting the share of locally produced goods, services, and works in their procurement. That's right, it's time to roll up our sleeves and get to work! These initiatives will build stable production facilities capable of covering industry needs.
The demand for small industrial zones is surging across the country. The government has planned out a tasty program supporting regional biz by providing ready-made production spaces since 2024. Currently, 34 small industrial zones are under construction in eight regions, encompassing over 200,000 square meters. A cool 46.6 billion tenge (US$91.3 million) has been set aside from the national budget to execute this badass plan.
Nagaspayev is all for it, assuring that more funding will be secured for the Industrial Development Fund to address additional applications. He stated, "The program has shown high demand from businesses in the regions. The ministry is considering additional funding to address the applications submitted to the Industrial Development Fund."
Prime Minister Olzhas Bektenov is eager for each large enterprise to Board the Domestic Value Creation Express, which includes creating a network of small and medium-sized businesses around them. If industrial enterprises refuse to hop aboard, well, they'll be missing out on some tasty state support.
- In order to strengthen the domestic manufacturing sector, large-scale purchasers like government bodies and subsoil users need to prioritize the use of locally produced goods, services, and works in their procurement.
- To further stimulate local industry growth, more funding will be allocated to the Industrial Development Fund to cater to the increasing demand from businesses seeking support.
