National Entrepreneurship Development Project for 2021-2025

National Entrepreneurship Development Project for 2021-2025

Approved by the Decree of the Government of the Republic of Kazakhstan №728 dated October 12, 2021

The project information

Name

National Entrepreneurship Development Project for 2021-2025

The project’s tasks

- to ensure structural changes in entrepreneurship;
- to help develop small businesses to increase employment-to-population ratio;
- to diversify sectors of the economy;
- to increase market competition and ensure equal conditions for businesses.

Implementation period

2021 – 2025

Expected economic effect (quantitative data)

1.    The share of small and medium-sized businesses in GDP will reach 35%.

2.    The contribution of tourism to GDP will increase up to 8.4 trillion tenge.

3.    The state's share in the economy will be reduced to 14%.

4.    995.3 thousand jobs will be created, including:
- 335.1 thousand permanent jobs,
- 660.2 thousand temporary jobs.

Expected social effect (quantitative and qualitative data)

1.7 million people will get permanent jobs;
2. 3.5 million people will be assisted in finding a job;
3. The number of people living in rural areas and having income below the subsistence minimum will be decreased by 6.5%.

The amount of money required for the project implementation

8,455,329,919 thousand tenge (including the republican budget – 1,030,884,427 thousand tenge, local budgets – 124,695,492.0 thousand tenge, extra-budgetary money – 7,299,750,000 thousand tenge):
In 2021 – 1,272,207,923.3 thousand tenge;
In 2022 – 1,370,367,038.7 thousand tenge;
In 2023 – 1,620,056,904.0 thousand tenge;
In 2024 – 1,963,862,120.0 thousand tenge;
In 2025 – 2,228,835,933.0 thousand tenge;
Total – 8 455 329 919 thousand tenge.

The Damu Entrepreneurship Development Fund (a subsidiary of Baiterek Holding) implements the National Entrepreneurship Development Project for 2021-2025 and provides support to businesses by:

  1. subsidizing a part of the interest rate and partially guaranteeing loans and microcredits issued to small and microbusinesses;
  2. subsidizing a part of the remuneration rate and partially guaranteeing loans/financial leasing agreements concluded between subjects of industrial and innovative activities and second-tier banks/leasing companies;
  3. subsidizing the coupon interest rate and guaranteeing bonds issued by businesses.
  4. subsidizing a portion of the margin on goods and a portion of the lease payment, which comprises the income of Islamic banks if these banks finance individual enterpreneurs;
  5. subsidizing subjects of social entrepreneurship.

Conditions for portfolio subsidizing under the National Entrepreneurship Development Project for 2021-2025

Participants Small and microbusinesses
Eligible industries

Any sector of the economy, except pawn shops, microfinance and factoring organizations, leasing companies, and trade companies (except food trade companies) – loans issued by second-tier banks

Priority sectors of the economy – loans issued by microfinance organizations



The maximum loan amount 20 million tenge for investment purposes; 5 million tenge for working capital replenishment
Subsidy amount for loans

The base rate of the National Bank of Kazakhstan +7%, 15.75% of which is subsidized by the state, leaving the entrepreneur responsible for the remaining balance.

For projects implemented in small and single-industry towns, as well as rural settlements – the base rate of the National Bank of Kazakhstan +7%, 16.75% of which is subsidized by the state, and the entrepreneur is responsible for covering the difference.

Loans issued to social entrepreneurship entities are guaranteed and subsidized by the state, without industry restrictions, with the exception of pawnshops, microfinance, factoring organizations, and leasing companies. These entities are charged a nominal remuneration rate that is equivalent to the National Bank's base rate +7%, and the state subsidizes 16.75% of this rate, leaving the entrepreneur responsible for the remaining balance.

Subsidy amount for microcredits Remuneration rate is 28%, of which 50% is subsidized
Loan term

1. 3 years for investment purposes (the subsidizing period cannot be prolonged);

2. 2 years for working capital replenishment (the subsidizing period cannot be prolonged)


*Entrepreneurs who are implementing projects in small and single-industry towns, and rural areas may be eligible for subsidized interest rates on loans or financial leasing agreements. This subsidy applies to projects located in the cities of Zhezkazgan and Konaev, provided that the applications are submitted before December 31, 2023.


Conditions for subsidizing loans under the National Entrepreneurship Development Project for 2021-2025 (Support for entrepreneurs and subjects of industrial and innovative activities)

Participants

Entrepreneurs and subjects of industrial and innovative activity who are implementing or planning to implement effective projects.

Entrepreneurs and subjects of industrial and innovative activity who are implementing or planning to implement green projects.

However, the program does not apply to the following:

1. Projects that fall under the types of activities specified in paragraph 4 of Article 24 of the Code and which have arisen since April 20, 2020.

2. Pawnshops, microfinance, factoring organizations, and leasing companies.

Eligible industries

Projects in regional centers are implemented in priority sectors of the economy, according to the List of Priority Sectors of the Economy.

Entrepreneurs who are implementing projects in small and single-industry towns, as well as rural settlements, are eligible for support under this program, without any sectoral restrictions. The support provided takes into account the location of the project implementation and the entrepreneur's place of registration. In addition, for projects located in small and single-industry towns, as well as rural settlements, it is possible to subsidize the interest rate on loans that are intended to replenish working capital in the field of trading activities. The amount of this subsidy is capped at 100 million tenge per entrepreneur.

Entrepreneurs and subjects of industrial and innovative activities who are implementing or planning to implement green projects are eligible for support under this program. To qualify for this support, the project must adhere to the classification of green projects, which has been developed by the authorized body in the field of environmental protection and approved by the Decree of the Government of the Republic of Kazakhstan.

Entrepreneurs operating in manufacturing industries listed in Appendix 1-1 to the Subsidizing Rules, and implementing projects in Turkistan, Mangystau, Atyrau, Aktobe, West Kazakhstan, Kyzylorda, Zhambyl regions or the city of Shymkent are eligible for the program.


The maximum loan amount

The maximum loan must not exceed 3 billion tenge for one entrepreneur. If a loan is provided to several affiliated entrepreneurs for the implementation of one business project, then this loan cannot exceed 3 billion tenge.

The loan or financial leasing agreement cannot exceed 1.5 billion tenge for one entrepreneur (taking into account all existing loans and leasing transactions for projects in small and single-industry towns, rural settlements, with the exception of regional centers).

For entrepreneurs implementing projects in small and single-industry towns and rural settlements, within the priority sectors of the economy listed in Appendix 1 to the Subsidizing Rules, the loan or financial leasing agreement must not exceed 3 billion tenge.

Subsidy amount

The base rate of the National Bank of Kazakhstan + 5%, 13.75% of which is subsidized by the state, and the remaining balance is paid by the entrepreneur.

For projects implemented in small and single-industry towns, and rural settlements, with the exception of regional centers, the base rate of the National Bank of Kazakhstan + 5%, of which 14.75% is subsidized by the state, and the entrepreneur pays the remaining balance.

Nominal interest rate for social entrepreneurship entities – base rate of the National Bank of Kazakhstan + 5%, 14.75% of which is subsidized by the state, and the rest is paid by the entrepreneur.

Nominal interest rate for entrepreneurs operating in manufacturing industries listed in Appendix 1-1 to the Subsidizing Rules, and implementing projects in Turkistan, Mangystau, Atyrau, Aktobe, West Kazakhstan, Kyzylorda, Zhambyl regions or the city of Shymkent – base rate of the National Bank of Kazakhstan + 5%, 14.75% of which is subsidized by the state, and the rest is paid by the entrepreneur.

Loan term 1. 5 years for investment purposes (the subsidizing period cannot be prolonged);
2. 3 years for working capital replenishment (the subsidizing period cannot be prolonged)
Refinancing Loans and leasing agreements that will be valid for less than 2 years from the date of issue of the first loan/leasing agreement are refundable

* Entrepreneurs who are implementing projects in small and single-industry towns, and rural areas may be eligible for subsidized interest rates on loans or financial leasing agreements. This subsidy applies to projects located in the cities of Zhezkazgan and Konaev, provided that the applications are submitted before December 31, 2023.


The conditions for subsidizing part of the markup on goods and part of the rental payment that constitutes the income of Islamic banks are similar to the conditions for subsidizing under the "Support for Entrepreneurs/Subjects of Industrial-Innovative Activity" program.

Conditions for subsidizing loans under the National Entrepreneurship Development Project for 2021-2025 (Regional financing of small and medium-sized businesses)

Participants

Subsidizing under the Regional Program is available in socially vulnerable regions, during the state of emergency, or in other cases according to written agreement between a local executive body and an authorized body responsible for entrepreneurship.

The terms of subsidizing in socially vulnerable regions or during the state of emergency are agreed in writing by a local executive body and an authorized body responsible for entrepreneurship

Eligible industries All industries
The maximum loan amount

The subsidized loan cannot exceed 500 million tenge for one small or medium-sized business. The subsidized loan amount is specified in a written agreement between a financial institution and a local executive body. The loan amount is calculated without taking into account other loans of an entrepreneur’s affiliates.

The maximum funding limit for a microfinance organization per one small or medium-sized business cannot exceed 8,000 MCI.

Subsidy amount Only loans/microloans with a nominal interest rate less than 8.5% can be subsidized. The rest is paid by an entrepreneur in accordance with a written agreement between a financial institution and a local executive body. The interest rate paid by an entrepreneur must be at least 1% per annum.
Loan term

5 years for loans and microloans.

3 years for working capital replenishment (the subsidizing period cannot be prolonged).


Conditions for subsidizing a part of the coupon rate under the National Entrepreneurship Development Project for 2021-2025

Participants   Small and medium-sized businesses that operate in any sector of the economy (besides trade (except for working capital replenishment) and other activities specified in paragraph 4 of Article 24 of the Code, individual businesses that issue bonds in accordance with the Civil Code of the Republic of Kazakhstan;
Maximum loan amount   The total nominal value of the issuer's bonds, for which a part of the coupon rate is subsidized, cannot exceed 3 billion tenge per issuer.
Subsidy amount Subsidizing part of the coupon yield, including for "green" bonds or Islamic securities, is carried out provided that the coupon yield rate for bonds or Islamic securities does not exceed the NBK base rate + 5% for bonds with a maturity of no more than 5 years, with 6% of the total amount paid by the entrepreneur, and the difference subsidized by the government.
Subsidy term The term of subsidizing a portion of the coupon interest rate on bonds is 5 (five) years, but not more than the term of circulation of bonds or Islamic securities.
Currency tenge

Conditions for portfolio subsidizing and guaranteeing under the National Project for the Development of Entrepreneurship for 2021-2025

Program Participants

Micro- and small businesses

Economy Sector

Any sector of the economy, except pawn shops, microfinance and factoring organizations, leasing companies, and trade companies (except food trade companies) – loans issued by second-tier banks

Priority sectors of the economy – loans issued by microfinance organizations

Maximum Loan Amount 

For investment purposes – maximum 20 million tenge

For replenishment of working capital – maximum 5 million tenge

Guarantee Amount    

Up to 85% of the loan amount

Renumeration Rate

Loans issued to social entrepreneurship entities are guaranteed and subsidized by the state, without industry restrictions, with the exception of pawnshops, microfinance, factoring organizations, and leasing companies. These entities are charged a nominal remuneration rate that is equivalent to the National Bank's base rate +7%

Guarantee Term

Must not exceed the loan term 

* Entrepreneurs who are implementing projects in small and single-industry towns, and rural areas may be eligible for subsidized interest rates on loans or financial leasing agreements. This subsidy applies to projects located in the cities of Zhezkazgan and Konaev, provided that the applications are submitted before December 31, 2023


Loan guarantees for social entrepreneurship entities

Program Participants

Individual entrepreneurs and legal entities included in the register of social entrepreneurship entities

Loan Purpose

Investments and replenishment of working capital

Economy Sector

Any economy sector

Maximum Loan Amount 

For investment purposes – maximum 20 million tenge

For replenishment of working capital – maximum 5 million tenge

Renumeration Rate

Base rate of the National Bank of Kazakhstan +7%

Guarantee Amount       

Up to 85% of the loan amount

Guarantee Term

Must not exceed the loan term

Fees and Charges

None


Conditions for loan guaranteeing under the National Project for the Development of Entrepreneurship for 2021-2025 (Support for entrepreneurs and subjects of industrial and innovative activities)

 

GUARANTEES for novice entrepreneurs

GUARANTEES for experienced entrepreneurs

Maximum guarantee amount:

Up to 85 % of the loan amount

85 % of the loan amount – 360 million tenge

70 % of the loan amount – 600 million tenge

50 % of the loan amount – 1 billion tenge;

Maximum loan amount: 360 million tenge 1 billion tenge

For entrepreneurs operating in manufacturing industries listed in Appendix 1-1 to the Subsidizing Rules, and implementing projects in Turkistan, Mangystau, Atyrau, Aktobe, West Kazakhstan, Kyzylorda, Zhambyl regions or the city of Shymkent

The loan amount must not exceed 360 million tenge

The guarantee amount must not exceed 85% of the loan amount

The entrepreneur provides collateral for a loan in the amount of at least 15% of the loan amount (when calculating the sufficiency of the collateral, the pledge of the right to claim and the pledge of shares in the authorized capital of business partnerships are not taken into account).

Economy Sector

  1. For projects in small and single-industry towns, and rural settlements – projects in any industry are eligible
  2. For projects in regional centers – priority sectors of the economy
  3. For projects implemented in Turkistan, Mangystau, Atyrau, Aktobe, West Kazakhstan, Kyzylorda, Zhambyl regions or the city of Shymkent – manufacturing industries listed in Appendix 1-1 to the Guarantee Rules.
 Loan Purpose 1. Investments, acquisition of fixed assets

2. Replenishment of working capital

3. Replenishment of working capital in the amount of 500 million tenge or less (except for current loan payments or payments for leasing agreements and other purposes not related to the applicant's main activity)

4. Refinancing.

Interest rate: The interest rate established by the National Bank of the Republic of Kazakhstan and increased by no more than 5%.

Maximum guarantee term

Must not exceed the loan term



Collateral (% of the loan amount)

15% or less

50% or less



Entrepreneurs’ own money in loans of 500 million tenge and more

Not less than 10% of the total cost of project implementation (cash, real estate, or other assets, including property of third parties)


Application Processing Time

For loans of 500 million tenge or less – up to 5 working days

For loans exceeding 500 million tenge – up to 10 working days



* Entrepreneurs who are implementing projects in small and single-industry towns, and rural areas may be eligible for subsidized interest rates on loans or financial leasing agreements. This subsidy applies to projects located in the cities of Zhezkazgan and Konaev, provided that the applications are submitted before December 31, 2023

Conditions for finance leasing guaranteeing under the National Project for the Development of Entrepreneurship for 2021-2025 (Support for entrepreneurs and subjects of industrial and innovative activities)

Maximum guarantee amount: up to 70% of the value of the leased asset
Maximum amount of financial leasing: 500 million tenge

Economy Sector

  1. For projects in small and single-industry towns, and rural settlements – projects in any industry are eligible
  2. For projects in regional centers – priority sectors of the economy
 Finance Lease Purpose 1. Investments, acquisition of fixed assets

2. Replenishment of working capital

3. Replenishment of working capital in the amount of 500 million tenge or less (except for current loan payments or payments for leasing agreements and other purposes not related to the applicant's main activity)

4. Refinancing.

Financial lease rate:

The base interest rate established by the National Bank of the Republic of Kazakhstan + 5% or less

Maximum guarantee term

Must not exceed financial leasing term

Collateral (% of the loan amount)

      30% or more

Application Processing Time

For loans of 500 million tenge or less – up to 5 working days

For loans exceeding 500 million tenge – up to 10 working days


Loan guaranteeing for social entrepreneurship entities

Program Participants

Individual entrepreneurs and legal entities included in the register of social entrepreneurship entities

Loan Purpose

Investments and replenishment of working capital

Economy Sector

Any economy sector

Location

Any place of implementation

Maximum Subsidized Loan Amount

For investment purposes – maximum 1,5 billion tenge

For replenishment of working capital ­­– maximum 500 million tenge

Maximum Guaranteed Loan Amount

360 million tenge

Renumeration Rate

The base rate of the National Bank of Kazakhstan+5%

Subsidy Amount     

The base rate of the National Bank of Kazakhstan+5%, 14,75% of which is subsidized by the state, and the rest is paid by the entrepreneur

Refinancing of loans and leasing transactions

2 years or less

Subsidy Term

For investment purposes – up to 5 years

For replenishment of working capital – up to 3 years

Guarantee Amount

Up to 85% of the loan amount

Guarantee Term

Must not exceed loan term

Fees and Charges

None


Implementation of the National Entrepreneurship Development Project for 2021-2025


Subsidizing projects in all industries from January 1, 2023 to January 1, 2024

REGIONS 

  National Project  

  Portfolio Subsidy  

  TOTAL  

Akmola region

259

102

361

Aktobe region

588

360

948

Almaty region

376

127

503

Atyrau region

337

236

573

East Kazakhstan region

248

145

393

Almaty city

832

361

1 193

Astana

664

484

1 148

Shymkent

386

307

693

Jambyl Region

321

384

705

West-Kazakhstan region

241

188

429

Karaganda region

307

229

536

Kostanay region

346

121

467

Kyzylorda Region

586

245

831

Mangistau region

596

419

1 015

Abay region

322

102

424

Zhetysu region

147

122

269

Ulytau region

214

35

249

Pavlodar region

472

151

623

North-Kazakhstan region

255

85

340

Turkestan region

344

122

466

Total

7 841

4 325

12 166


Project guaranteeing from January 1, 2023 to January 1, 2023

REGIONS

  Number of signed guarantees  

  Total loan amount, tenge  

  Total amount of guarantees, tenge  

Akmola region

227

               13 691 518 906  

                      6 956 147 337  

Aktobe region

670

               21 708 650 980  

                     11 731 223 914  

Almaty region

277

               20 651 191 630  

                      9 362 206 515  

Atyrau region

459

               15 414 133 820  

                      7 420 202 312  

East Kazakhstan region

270

               11 770 351 043  

                      6 027 394 523  

Jambyl Region

547

               15 248 852 340  

                      8 297 839 928  

West Kazakhstan region

331

               16 295 086 650  

                      8 061 117 857  

Karaganda region

397

               13 902 152 079  

                      6 428 072 071  

Kostanay region

284

               15 588 257 112  

                      8 411 116 958  

Kyzylorda Region

591

               15 539 890 205  

                      8 031 304 495  

Mangistau region

653

               20 049 641 676  

                      9 621 461 803  

Pavlodar region

400

               20 635 439 161  

                     10 760 437 072  

North Kazakhstan region

210

               10 265 715 280  

                      6 035 804 126  

Turkestan region

315

               17 216 685 000  

                      7 387 859 027  

Shymkent

415

               14 804 665 000  

                      6 277 216 274  

Astana

769

               39 036 824 670  

                     16 895 885 587  

Almaty city

522

               26 429 484 960  

                     12 718 509 547  

Abay region

237

                8 501 516 121  

                      3 863 940 475  

Zhetysu region

241

                9 449 465 000  

                      4 279 798 495  

Ulytau region

128

                6 236 037 479  

                      2 726 037 259  

Total

7 943

332 435 559 113

161 293 575 575

 

For more information on the Program's implementation results, please visit this link: https://damu.kz/poleznaya-informatsiya/reports/dkb-2025/month/

 

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