"Business Roadmap 2020": Aidar Arifkhanov Has Spoken about Successful Projects

Entrepreneurs who received support under the “Business Roadmap 2020” State Program paid 900 billion tenge in the form of taxes to the state budget. This was announced by the Chairman of the Board of “Baiterek” National Managing Holding” JSC, Aidar Arifkhanov, speaking at the press conference in Ukimet Uyi.

He noted that one of the key Baiterek Holding’s activities is the support of small and medium-sized businesses. The holding conducts this work through its subsidiary organization, Damu Entrepreneurship Development Fund JSC.

- Under the state program, small and medium-sized businesses can receive support in the form of subsidizing interest rates to reduce the cost of a loan and receive a partial guarantee on loans in case of a lack of collateral. The result of our activities is subsidizing 13 thousand projects and providing guarantees to 5 thousand projects for the entire period of this program implementation (since 2010). These are quite significant figures, - Aidar Arifkhanov informed.

As it was noted by the Head of the Holding, over the years of BRM 2020 implementation, the program participants have paid 900 billion tenge in the form of taxes, products output at the amount of about 13.5 trillion tenge has been ensured. Due to its implementation, more than 89 thousand new jobs have been created, about 312 thousand existing vacancies have been supported.

In addition to statistics, Aidar Arifkhanov gave examples of successful projects that were implemented through the state program.

In particular, “Bal Textil” LLP produces carpets in Turkestan region. The company has received a loan of 250 million tenge for the purchase of modern equipment. As a result, today the company produces more than 500 varieties of carpets and is the first Kazakhstani supplier of products for the world famous brand IKEA.

"Bilal" Company in Turkestan region is engaged in the production of grind coffee. The company has received support from us for the purchase of equipment for the full production cycle. The loan amount is 30 million tenge. This manufacturer, by the way, successfully replaces imported counterparts in the domestic market due to low prices.

In the East Kazakhstan Oblast, one of the largest manufacturers of oilfield and drilling exploration equipment, Oskemen Industrial Reinforcement Plant, was supported. The loan amount is 1.2 billion tenge.

In Almaty Oblast, Asyl Kus Agro Company has received a loan of 1.3 billion tenge for the construction of a poultry factory and the purchase of equipment. 170 jobs have been already created at the facility.

There are interesting and very useful projects in the social sphere. For instance, Symbat-2050 LLP is building a private school for 600 children through a loan of 500 million tenge in Aktobe Oblast. The successful pace of construction has inspired them also to build a boarding school for 100 children, but it will be implemented at their own expense completely.

In the same region, we are supporting implementation of the first Kazakhstani project for health care within a public-private partnership. Namely, “Pervaya Pomosch” LLP has received a loan of 766 million tenge for the purchase of resuscitation ambulance vehicles. The company is planning to provide ambulance services with a workload of 200 thousand calls per year.

- We have a lot of similar examples, each of them is unique and solves specific economic and social issues, - said Aidar Arifkhanov.

Meanwhile, he recalled that on May 4-6, the capital's Independence Palace hosted ULTTYQ O`NIM exhibition of Kazakhstani manufacturers. This year it involved participation of more than 500 Kazakhstani enterprises which received public support through "Baiterek" Holding’s and "Damu” Fund’s programs.

According to Aidar Arifkhanov, in the future, support of entrepreneurs is planned to be strengthened. Thus, on behalf of the First President of the Republic of Kazakhstan – Yelbasy, Nursultan Nazarbayev, the Business Roadmap 2020 program shall be extended for another five years.

It is planned to increase the size of loans to subsidize and guarantee the replenishment of working capital from 60 million tenge to 360 million tenge. The list of loan objectives will be expanded: henceforth entrepreneurs who start their businesses or develop new areas of the existing businesses using Kazakhstani and foreign franchising will be supported. In addition, operating participants of the program will be expanded, where microfinance organizations will be added, as well as the amount of the state grant will be increased from 3 million tenge to 5 million tenge.

- We should not stand still, therefore, we are preparing a new state program of the “Business Roadmap” until 2025 jointly with the Ministry of National Economy. It is planned to adopt it by the end of the year, - he stressed out.

The Chairman of the Board of the Holding also told journalists about the activities of QazTech Ventures JSC, which is developing a business incubation system. A business incubator is an organization dedicated to supporting projects of young entrepreneurs at all the stages of development: from the elaboration of an idea to its commercialization. In 2019, it is planned to support at least three business incubators.

When answering journalists' questions, Aidar Arifkhanov informed that currently, through Damu Fund, there are 18 Entrepreneurs Service Centers in all the regional centers and cities of Astana, Almaty, Semei, as well as Mobile Business Support Centers, which operate in 14 oblasts of Kazakhstan.

The most comfortable conditions based on the “one-contact” principle have been created for entrepreneurs. Consultants in various areas, employees of servicing companies, Atameken NCE, representatives of second-tier banks, and Damu Fund work in the operating rooms of the Center.

- There are often people coming to us who have an idea, but do not know how to fulfill it. We explain everything in detail, absolutely for free. We help preparing a business plan, making the necessary calculations: how to contact a bank, what documents are required, - said Aidar Arifkhanov.

Since the opening of the Entrepreneurship Service Centers (since 2013), 349.2 thousand clients have been served within their base, who have received 544.9 thousand consultations. The activities of these centers provide real assistance to beginners and current entrepreneurs.

It should be noted that the press conference was organized at the site of the Press Center of the Government of the Republic of Kazakhstan. The Vice-Minister of National Economy of the Republic of Kazakhstan, Yermek Alpyssov, and the Deputy Chairman of the Board of "Atameken" National Chamber of Entrepreneurs, Eldar Zhumagaziyev, have also participated in it. The full version of the press conference is available here.

Reference:

“Baiterek” National Managing Holding” JSC was established in accordance with the Decree of the President of the Republic of Kazakhstan dated May 22, 2013. The key institution of the Government of the Republic of Kazakhstan that complies with the advanced standards of corporate governance and ensures the implementation of the objectives for the sustainable development of the economy of Kazakhstan through its diversification, support for innovation, export development, increase in labor productivity. The Holding includes: Development Bank of Kazakhstan JSC, Investment Fund of Kazakhstan JSC, Zhilstroisberbank of Kazakhstan (HCSBK) JSC, Kazakhstan Mortgage Company MO JSC, KazakhExport EIC JSC, Damu EDF JSC, QazTech Ventures JSC, Housing Construction Guarantee Fund JSC, Kazyna Capital Management JSC, Baiterek Development JSC, Kazakhstan Project Preparation Fund LLP.

“Damu” Entrepreneurship Development Fund JSC was established based on the Decree of the Government of the Republic of Kazakhstan dated April 26, 1997. The mission of the Fund is an active role in the sustainable development of micro, small and medium-sized businesses in Kazakhstan through the implementation of comprehensive and effective support tools. Branches of Damu Fund function in all the regions of Kazakhstan, having considerable experience of collaboration with local entrepreneurs, public organizations and local executive authorities.

QazTech Ventures JSC was established to enable the development of technology entrepreneurship through the tools of venture financing, business incubation and technology consulting. QazTech Ventures is a part of the structure of “Baiterek” NMH” JSC.