Kazakhstan businesspersons to receive substantial support in 2020
Akhmetzhan Yessimov, Chairman of the Board of Samruk Kasyna National Welfare Fund, and Timur Kulibayev, Chair of the Bureau of Atameken National Chamber of Entrepreneurs, have declared 2020 the year of support for entrepreneurship, as well as considered the future objectives for cooperation among the Fund and the Chamber, Strategy2050.kz informs with the press service of Samruk Kazyna.
Mr. Kulibayev, in his speech, noted that most Kazakh citizens are involved in private entrepreneurship and that long-term orders could provide them with considerable support.
“They [entrepreneurs], in their turn, could raise their employees’ salaries, which is one of the requirements when joining the Fund’s procurement system, playing a serious stabilizing social role for the society.
The reduction in the terms of payment for the services rendered and goods delivered to 20 days is essential. There is no place to go for funds, all the companies have been refinanced. Unfortunately, such requirements for credit were set by the National Bank, leading to the sharp decrease in the financing of the real sector. The offset policy and long-term contracts system, that we are discussing, is of great importance to manufacturers,” Kulibayev said.
The Head of Atameken has suggested envisaging business cross-undertakings to improve the quality and localization. When creating new productions under off-take contacts and Russia’s experience, provide funds to do research and development, buy drawings, study world analogues by public institutions.
On his part, Akhmetzhan Yessimov, accentuated such an interaction form as off-take contracts – a mechanism of prepaid long-term orders.
“We need to support Kazakh manufacturers as our company benefits. We conclude off-take contracts because those goads are in demand. Nevertheless, it is important that those meet the quality, cost, and so on, not only because they are domestic producers,” said Akhmetzhan Yessimov.
10 off-take contracts are slated for signing by the year’s end. So far, 4 such contracts on transformers and wagon stabilizers for around 3.5 billion tenge have been signed. 19 projects have been approved and 47 projects are being discussed, they all aim at creating new high-technology plants.
The sides agreed to develop partnership relations, build up the joint work to ensure an increase in local content in the medium term by 2-fold through the increase procurements from 300 billion tenge to 600 billion tenge.
At the meeting’s end, the heads of the Fund and the national chamber announced 2020 the year of support for entrepreneurship.
In May this year the Fund and the Chamber signed the agreement giving the opportunity for producing companies to get long-term contracts alongside the Fund’s companies, ensuring business growth and effective decision-making to support domestic producers.
