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.

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

Participants Small and microbusinesses
Eligible industries

Loans issued by second-tier banks are subsidized for businesses operating in any industry

Loans issued by microfinance organizations are subsidized only for businesses operating in high priority sectors of the economy



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

The interest rate established by the National Bank of the Republic of Kazakhstan + 7%, of which 6% is paid by an entrepreneur, and the rest is subsidized by the state

For projects implemented in villages, single-industry and small towns – the interest rate established by the National Bank + 7%, of which 5% is paid by an entrepreneur, and the rest is subsidized by the state

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)


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 activities operating in priority sectors of the economy

Projects implemented in villages, single-industry and small towns (except for cities of republican significance and regional centers) can be subsidized disregarding sector of the economy

Eligible industries All industries – for projects implemented in villages, single-industry and small towns (except for cities of republican significance and regional centers)

The maximum loan amount

3 billion tenge for one entrepreneur. If a loan is provided to several affiliated entrepreneurs for the implementation of one business project, then the total loan amount cannot exceed 3 billion tenge.

1.5 billion tenge for entrepreneurs operating in villages, single-industry and small towns (except for cities of republican significance and regional centers).

Subsidy amount Subsidy amount The interest rate established by the National Bank of the Republic of Kazakhstan + 5%, of which 6% is paid by an entrepreneur, and the rest is subsidized by the state
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

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 7 billion tenge per issuer.
Subsidy amount 7% of the coupon rate
Subsidy term 5 years, but not more than the maturity of bonds
Currency tenge

An entrepreneur can be provided with support under the Program.

Newly-founded businesses and entrepreneurs implementing or planning to implement their projects in priority sectors of the economy are subject to guaranteeing.


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

  For newly-founded businesses For long-established businesses
Maximum guarantee amount: up to 85% of a loan ip to 50% of a loan
Maximum loan amount: 360 million tenge 1 billion tenge
Eligible industries: 1. projects implemented in villages, single-industry and small towns can be guaranteed disregard for their industry
2. projects implemented in cities of republican significance or regional centers must belong to high priority sectors of the economy
Purpose of a loan:

1. Purpose of a loan;

2. Working capital replenishment;

3. 100% of the loan is intended for working capital replenishment (not more than 500 million tenge) with the exception of current payments for loans or 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 Cannot exceed the loan term

Collateral for loan (ratio of collateral value to loan amount):  minimum 15% minimum 50%

Investing own funds in a project (for loans over 500 million tenge): not less than 10% of the total cost of project implementation. Own funds are cash, movable property, or real estate, including property of third parties
Consideration period: maximum 5 working days for loans under million tenge; maximum 10 working days for loans over 500 million tenge;


Conditions for guaranteeing financial leasing agreements under the National Entrepreneurship Development Project 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
Eligible industries 1. projects implemented in villages, single-industry and small towns can be guaranteed disregard for their industry 2. projects implemented in cities of republican significance or regional centers must belong to high priority sectors of the economy
Purpose of financial leasing: 1. Investments, acquisition of fixed assets; 2. Working capital replenishment; 3. 100% of the loan is intended for working capital replenishment (not more than 500 million tenge) with the exception of current payments for loans or leasing agreements and other purposes not related to the applicant's main activity; 4. Refinancing.
Financial lease rate: The interest rate established by the National Bank of the Republic of Kazakhstan and increased by no more than 5%.

Maximum guarantee term no more than the term of financial leasing

Collateral for loan (ratio of collateral value to loan amount):  Minimum 30%

Consideration period: maximum 5 working days for loans under 500 million tenge; maximum 10 working days for loans over 500 million tenge;


Implementation of the National Entrepreneurship Development Project for 2021-2025

Subsidizing projects in all industries from January 1, 2022 to July 1, 2022

REGIONS Business Roadmap (2nd leg) Portfolio subsidizing National Project TOTAL
Akmola Region 28
14
43
85
Aktobe Region 65
186
64
315
Almaty Region 51
8
56
115
Atyrau Region 59
31
58
148
East Kazakhstan Region 67
91
51
209
Almaty 80
240
136
456
Nur-Sultan 110
4
90
204
Shymkent 28
155
65
248
Zhambyl Region 14
14
86
114
West Kazakhstan region 22
69
48
139
Karaganda Region 28
77
67
172
Kostanay Region 28
65
68
161
Kyzylorda Region 35
57
78
170
Мангистауская область 50
20
40
110
Pavlodar Region 25
111
103
239
North Kazakhstan region 11
14
49
74
Turkistan Region 16
194
64
274
Total 717
1350
1166
3233

Project guaranteeing from January 1, 2022 to July 1, 2022

REGIONS The number of signed guarantees Total loan amount, tenge Total guarantee amount, tenge
Akmola Region 70
2 130 506 000 1 046 190 356
Aktobe Region 304
7 708 858 390 3 956 492 081
Almaty Region 119
6 005 970 037 2 513 957 696
Atyrau Region 152
4 256 247 649 1 923 060 616
East Kazakhstan Region 138
6 432 383 948 2 784 346 729
Zhambyl Region 111
4 198 679 389 1 855 961 794
West Kazakhstan Region 141
4 983 432 568 2 052 805 733
Karaganda Region 130
4 022 500 070 1 880 803 381
Kostanay Region 169
4 758 569 151 2 062 830 835
Kyzylorda Region 153
3 934 431 329 1 669 578 399
Mangystau Region 94
3 824 003 410 1 488 417 199
Pavlodar Region 161
6 856 323 100 2 938 877 075
North Kazakhstan Region 83
4 075 318 234 1 501 683 011
Turkistan Region 45
2 022 580 336 730 149 280
Shymkent 172
4 159 033 807 1 810 994 739
Nur-Sultan 104
9 258422 488 3 445 631 986
Almaty 113
11 650 014 193 4 597 494 745
Total 2259
90 277 274 099 38 259 275 653

Feel free to visit the Damu Fund’s website for more information on the program implementation https://damu.kz/poleznaya-informatsiya/reports/dkb-2025/month/

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