Samruk-Kazyna Develops Effective Support Mechanisms in Kazakhstan Manufacturer Sector

Samruk-Kazyna Develops Effective Support Mechanisms in Kazakhstan Manufacturer Sector

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23 September 2021

The IX Forum of Kazakhstan Manufacturer Mechanical Engineering in the New Reality, which combines online and offline formats, was held in Nur-Sultan. Samruk-Kazyna submitted its report on action taken to support Kazakh producers. 

It shows the mutual benefits for the local businesses and Samruk-Kazyna Group. Since 2018, the Fund has implemented the Import Substitution Program. It aimed to stimulate the creation of new manufactures which have no analogs in Kazakhstan. 

Offtake agreements provide the opportunity to local businesses to create a production for Samruk-Kazyna’s subsidiary companies. One of the first projects was the offtake agreement that specializes in the production of transformers and reactors. The Fund signed 54 projects and 155 offtake agreements in force with a total value of KZT 77,7 billion. It reduced importation and outflow of funds amounting to over KZT 8,5 billion annually and helped suppliers increase their production and paid taxes of more than KZT 18 billion. 

The realization of this project has created positive economic impacts as it has provided new jobs and a broadening of the tax base. According to results for eight months of 2021, the share of local content in Samruk-Kazynaprocurement has increased to 76%. The Fund does not intend to rest on its laurels and will continue to work on this area.