Report of the Chairman of the Board of JSC ‘Baiterek’ National Managing Holding Karagoishina R.T. for the meeting on the issue “On the Development of the Manufacturing Industry”

DEAR PARTICIPANTS OF THE MEETING!

At present, JSC ‘Baiterek’ National Managing Holding, together with its subsidiaries (Development Bank of Kazakhstan, Industrial Development Fund, Qazaqstan Investment Corporation, Damu Entrepreneurship Development Fund, and Export Credit Agency of Kazakhstan (KazakhExport)), provides comprehensive support to the manufacturing industry.

Thus, based on the results of 2023 and the first quarter of 2024, the Holding’s group of companies financed 4.6 thousand projects in the manufacturing industry totaling 1.6 trillion KZT.

According to the results of 2023, enterprises in the manufacturing industry supported by the Holding (excluding Damu) produced goods worth 3.9 trillion KZT, which accounts for 18% of the total volume of manufactured products in the manufacturing sector. The contribution to non-commodity exports by supported enterprises amounted to 12% (excluding Damu).

Thanks to state support measures, the Holding has achieved the following socio-economic effects: about 4 thousand new jobs were created, goods were produced and services were provided totaling 15.1 trillion KZT, export volume exceeded 1.6 trillion KZT, and tax payments to the state budget amounted to 1.6 trillion KZT. (Data for 2023 were provided by entities that received state support measures, without confirmation from the State Revenue Committee. Effects for the first quarter of 2024 will be generated in early July 2024, as reporting entities submit their reports at the end of May 2024).

Taking into account the Holding’s financial support, 5 projects were commissioned in 2023 with a total financing amount of approximately 96.8 billion KZT.

At the same time, within the framework of financial support for manufacturing industry projects, I would like to highlight several key projects.

For example, the project “Construction of a multi-brand passenger car manufacturing plant” (Astana Motors), which is expected to create about 2.2 thousand jobs by 2025 with the production of more than 90 thousand vehicles. Under the project “Establishment of tire production in the city of Saran” (KamaTyres), about 1.1 thousand jobs are planned to be created with the production of 3 million tires for passenger cars and 500 thousand tires for trucks.

In addition, under the project “Construction of a sodium cyanide production plant”, Innovative Complex Sastobe LLP plans to create 300 new jobs by 2025 and produce 30 thousand tons of sodium cyanide per year.

All these projects are aimed at further import substitution.

In addition, it should be noted that the Holding is currently developing additional package programs that will support projects in the manufacturing industry.

Thank you for your attention!