The Damu Entrepreneurship Development Fund, a subsidiary of Baiterek Holding, and the Ministry of National Economy of the Republic of Kazakhstan are developing government support measures under the Business Roadmap-2025 Program.
The Damu Fund will continue to provide support to micro-, small and medium-sized businesses in priority sectors of the economy, such as the manufacturing industry, medicine, education, logistics, etc.
– 17,727 projects have been supported since the microcredit program was launched at the end of 2020. Under this program, the Damu Fund subsidizes up to 85% of the loan amount, while the final interest rate is 6% per annum. An entrepreneur can get a working capital loan of up to 5 million tenge and up to 20 million tenge for investment purposes. The amount of money allocated for microcrediting is planned to be increased since the program is popular among entrepreneurs, – said Gaukhar Buribayeva, Chairman of the Board of the Damu Fund.
The Damu Fund will work in cooperation with local executive bodies and will focus on the potential and opportunities of a region. By the order of President Kassym-Jomart Tokayev given on November 4, 2021, projects implemented in single-industry towns, small towns, and villages are planned to be supported without industry restrictions with a final rate of 5% per annum.
As for medium-sized businesses, the Damu Fund and the Agency for the Regulation and Development of the Financial Market financially support them through banks and the stock market. Medium-sized businesses will be able to use guarantees and subsidies on bond loans.
Moreover, by the order of the President given in his latest Address to the People of Kazakhstan, the Economy of Simple Things Program will be continued until the end of 2022. This program is aimed at expanding production in the manufacturing industry and the agro-industrial complex, import substitution, and promoting local goods and services on the domestic market. Over the entire period of the program implementation, the Damu Fund supported 929 projects with 746.6 billion tenge.
Projects that have been funded under the state programs are being implemented now. Also, applications will resume after certain budgetary procedures are completed.
The Damu Fund introduces digitalization to make the application process easier and faster. So far, the submission of documents and the signing of agreements are carried out online. It enabled the Fund to support more projects. Today, the share of online applications for subsidies is 97%, applications for guarantees – 76%.