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Dear Olzhas Abaevich,
Dear members of the Government and colleagues,
Allow me to report on the measures taken by JSC ‘Baiterek’ National Managing Holding to develop and support domestic production.
Within the framework of the Holding’s core activities, work is being carried out to prioritize domestically produced goods, works, and services through both support instruments that ensure production and further sales, as well as through internal procurement within the group of companies.
According to the analysis conducted for 2024, the average share of domestic production in consumer goods and technical products amounted to 45%, totaling approximately 23.9 trillion KZT.
High indicators in the consumer segment were recorded in such goods as gasoline and propane-butane with a domestic production share of 86%, food products – 63%, and passenger cars – 46%.
In technical products for the energy sector (fuel oil, petroleum gases, kerosene, etc.) – 81%, building materials – 66%, and chemical products – 43%.
As part of the initiative to direct 8 trillion KZT into the economy, the Holding and JSC ‘Samruk-Kazyna’ National Welfare Fund are currently working together to saturate the domestic market by providing domestic manufacturers with off-take contracts.
Under the National Project for the modernization of the energy and communal sectors, priority is given to using domestically produced goods to reduce import dependence and develop industrial potential.
Currently, in cooperation with JSC ‘QazIndustry’, data is being collected on the needs for goods, works, and services required for the National Project, after which work will begin to identify potential manufacturers to meet these needs.
The National Project provides for the replacement and modernization of critically worn energy and communal infrastructure. To supply SEM with products (pipes, treatment products, electrical cables, valves, fittings) of domestic production, it is proposed to make purchases, including from borrowers within the Holding group, thereby providing off-take contracts to Kazakh enterprises.
As a result of support in 2024, 33 projects were commissioned with a total support amount of 345.5 billion KZT, including the construction of an oil extraction plant, a volumetric block production plant, tire manufacturing, household appliances, cast iron foundries, and more.
This year, domestic production projects are also being covered, including the construction of plants for alkylate, paper and cardboard, sodium cyanide, soda ash, and other projects.
Support for domestic production is also carried out through the renewal of the vehicle fleet, with an indirect effect on the sale of domestically produced goods.
In particular, under the Industrial Development Fund, around 15 domestic manufacturers in the railcar, bus, agricultural machinery, and specialized transport sectors have been supported. To date, approximately 1.1 trillion KZT has been allocated, ensuring the sale of 26.6 thousand units of equipment.
Through the Agricultural Credit Corporation, via agricultural machinery leasing, 88.3 thousand units of equipment have been renewed for a total of 1.4 trillion KZT, of which 17.1 thousand units from domestic manufacturers accounted for 393.8 billion KZT.
Moreover, the focus of support measures also covers reciprocal obligations regarding the mandatory and regular procurement of domestically produced goods, works, and services.
This year, the volume of procurement of goods, works, and services (GWS) by supported enterprises of the Development Bank of Kazakhstan amounted to 30 billion KZT, of which the share of domestically produced GWS was about 29 billion KZT (approximately 99%). In comparison, in 2024, the share of domestic production in GWS was 4.6 billion KZT (about 14%).
The total procurement volume across the Holding’s group of companies in 2024 amounted to 54.1 billion KZT, of which domestic suppliers accounted for 45.7 billion KZT, representing an overall domestic value share of 84% (compared to 81% in 2023).
As of the first quarter of 2025, the domestic value share remains at 84% (or 5.7 billion KZT) of the total procurement volume (6.8 billion KZT).
This year, a Department for Domestic Value Development has been established within the Holding to coordinate and develop a unified methodology for evaluating and incentivizing domestic procurement in projects financed by the Holding group, including conducting sectoral and project analysis to identify production gaps.
In addition, under the announced initiative to direct 8 trillion KZT, it is planned to procure GWS worth at least 1.2 trillion KZT during the investment phase of projects.
Thus, within its activities, Baiterek Holding will continue to provide comprehensive support for domestic production, contributing to employment growth, technological modernization, and reduced import dependence through implemented projects and produced goods, including fulfillment of reciprocal obligations.
