Astana session unveils strategies for advancing Damu Entrepreneurship Development Fund

The strategic session of the Damu Entrepreneurship Development Fund, chaired by Alibek Kuantyrov, the Minister of National Economy of the Republic of Kazakhstan, took place in Astana. The meeting saw the participation of Nurlan Baibazarov, Head of Baiterek Holding, and members of the Fund's Board of Directors, including T. Zhaksylykov, G. Buribaeva, E. Ausharipov, along with independent directors R. Batalov, E. Bakhmutova, G. Khusainov, and others. The Development Strategy of the Damu Entrepreneurship Development Fund was presented during the session.

The draft Strategy is aligned with President Kassym-Jomart Tokayev's directives outlined in the Address to the People of Kazakhstan, "Economic Course of a Fair Kazakhstan." It emphasizes the necessity to devise new approaches for medium-sized business development through state support mechanisms.

The presented Strategy outlines Damu Fund's plans to boost the growth of medium-sized businesses, identified as having significant potential for the country's economic development. Priority focus is given to export-oriented projects in non-resource sectors and those promoting import substitution. 

The expansion of the guarantee instrument stands out as a key area of state support for SMEs, aiming to boost second-tier banks' liquidity involvement in lending to the national economy.

Collaborative efforts with akimats will persist to formulate financial regional programs tailored to the unique specifics and priorities of each region.

Additionally, the Fund intends to develop alternative support tools through stock market products. This initiative aims to enable SMEs to attract financing by engaging the private market in investing in business projects, with a specific emphasis on developing Islamic financial instruments and factoring operations.

The Development Strategy underscores the importance of digitalizing business processes and transitioning the front office to an online format. Currently, all Fund business processes, from entrepreneur application submissions to subsidy/guarantee agreement signings, have been digitized for the convenience of entrepreneurs.

ESG factors are integral to the Fund's strategy, with a commitment to increasing the share of ESG projects, including green and social initiatives, and supporting women and youth entrepreneurship.

– The government is actively working to foster the development of SMEs in the country, as evidenced by various indicators in this domain. For instance, the production output of small and medium-sized businesses has exceeded 47.2 trillion tenge, with a workforce of 4.3 million people. In 2023, 12.3 thousand projects received subsidies, totaling 1 trillion tenge in loans, and 8.2 thousand projects were guaranteed loans amounting to 363 billion tenge. We will persist in our efforts to propel SMEs as the primary driver of economic growth. To enhance the efficiency of budget fund utilization, considering their inherent limitations and to ensure broader SME coverage with financing, it is imperative to actively transition from a subsidizing instrument to guaranteeing and utilizing alternative funding instruments, – noted the Minister.  

During the session, participants shared new proposals and visions, identifying growth points crucial for the ongoing improvement of the Fund's activities. In conclusion, participants expressed confidence that the outlined goals and plans will enable the Damu Fund to continue successfully fulfilling its mission of entrepreneurship development in Kazakhstan.