Offtake Contracts and Import Substitution: Baiterek National Managing Holding Ensures Stable Procurement for Domestic Manufacturers

At a Government meeting, Chairman of the Management Board of ‘Baiterek’ National Managing Holding JSC Rustam Karagoishin reported on measures to support domestic production.

According to him, as part of the initiative to channel 8 trillion tenge into the economy, the Holding and Samruk-Kazyna Sovereign Wealth Fund JSC are working jointly to supply the domestic market by providing local manufacturers with offtake contracts.

Particular emphasis is placed on the priority use of domestically produced goods to reduce import dependence and develop industrial potential under the National Project for the Modernization of Energy and Utility Infrastructure. The project includes the replacement and modernization of critically worn-out energy and utility infrastructure. To ensure that such infrastructure is supplied with domestically produced goods, it is proposed to carry out procurement, including from the Holding’s group borrowers, which will in turn secure offtake contracts for Kazakhstani enterprises.

As a result of the support provided in 2024, 33 industrial projects worth 345.5 billion tenge were commissioned. These include the construction of an oil extraction plant, a volumetric blocks production facility, tire manufacturing plant, home appliances production facility, and a cast iron foundry. In 2025, new projects are planned — for the production of alkylate, paper, sodium cyanide, and soda ash.

Significant support is being provided to the transport sector. Through the Industrial Development Fund, 15 domestic manufacturers of railcars, buses, and special-purpose vehicles have been supported. A total of 1.1 trillion tenge was allocated, enabling the sale of 26.6 thousand units of equipment. Through KazAgroFinance, more than 88 thousand units of agricultural machinery were upgraded, including 17.1 thousand units worth 393.8 billion tenge.

Rustam Karagoishin emphasized the importance of commitments to procure goods, works, and services from domestic producers.

“This year, the volume of procurement of goods, works, and services (GWS) by enterprises supported by the Development Bank of Kazakhstan amounted to 30 billion tenge, of which GWS from domestic producers accounted for approximately 29 billion tenge (around 99%). By comparison, in 2024, the share of domestic producers in GWS was 4.6 billion tenge (around 14%),” the Chairman of the Holding’s Management Board stated.

At the same time, under the announced initiative to direct 8 trillion tenge into the economy, procurement of goods, works, and services worth at least 1.2 trillion tenge is planned this year.

The Prime Minister stressed that efforts in this direction must continue. When receiving support from Baiterek, each enterprise must procure only Kazakhstani goods, works, and services. This issue is to be kept under close supervision.