During today’s Government meeting chaired by Prime Minister Bakytzhan Sagintayev, the progress has been reviewed of the implementation of the Industrial-Innovative Development State Program for the nine months of 2017.

Minister of Investments and Development Zhenis Kassymbek reported that the volume of industrial production for the first nine months of this year amounted to 6.5 trillion tenge, having increased 5.7% compared to the same period last year. At the same time, growth is observed in the pharmaceuticals, light industry, metallurgy, machine building, oil refining, food production and chemical industry.

The state program’s main target indicators also show positive dynamics. Exports in manufacturing industry in the eight months of this year increased 23.1% compared to the same period last year and amounted to 9.9 billion USD.

Significant growth is observed in the sectors of agrochemistry, oil refining and ferrous metallurgy. To date, Kazakhstan's manufacturing products are exported to 115 countries. New markets were opened for some commodity items.

For the first time, cars made by “Asia Auto” were exported to China, by "Saryarka Automotive Industry" - to Tajikistan. Agricultural machinery, harvesters manufactured by DonMar, has been exported to the Russian market for several years.

Annually more than 380 exporters receive financial and service support.

In order to create a system for the of support non-primary exports, this year the Ministry of National Economy has developed and adopted a National Export Strategy.

To improve the investment climate, the National Investment Strategy for 2018-2022 was developed and approved jointly with the World Bank in the framework of the fulfillment of the instructions of the Head of State. There is the specialized national investment company “Kazakh Invest” with a network of foreign representatives and regional branches.

In seven years, more than 26 billion USD of foreign direct investment has been attracted in the manufacturing sector. The share of manufacturing in the investment structure in 2016 increased to 19.5%. The growth trend continues this year, the volume of investments in the manufacturing industry grew 3.5% and amounted to 599 billion tenge.

Workforce productivity within all enterprises in the first quarter of 2017 increased 16.1%. Most of the growth occurred in the priority sectors: oil and gas chemistry, ferrous metallurgy, oil refining.

"The true picture on all enterprises, including small, medium and large, will be formed at year-end. Taking into account the current development trend, it is possible to forecast that by the end of the year the indicator will be at least equal to the level of last year,” – the Minister stressed.

In general, positive trends are being observed in regions by every measure.

According to Zh. Kassymbek, the implementation of the program influenced the change in the structure of the economy and industry. Thus, the contribution of the manufacturing sector to the development of the economy (GDP) increased from 10.1% in 2015 to 11.9% in the first half of 2017, in industry - from 31.8% in 2010 to 40.7% according to the results of nine months of 2017, in exports - from 27.9% in 2010 to 32.7% in the eight months of 2017.

The Minister also noted that new production is being launched every year under the program.

“In just seven years and the nine months of 2017, 1080 projects worth 5.5 trillion tenge have been launched within the Industrialization Roadmap, 101 thousand permanent jobs have been created," – Kassymbek said.

At the same time, in the first nine months of 2017, 52 projects worth 800 billion tenge were launched, creating 4500 permanent jobs. Until the end of 2017, in the regions, it is planned to complete more than 80 projects worth over 700 billion tenge, creating about 10 000 permanent jobs.

Also, according to the Minister, work on 72 troubled projects is tightly monitored. A roadmap was adopted for each project.

"Enterprises were provided with such state support measures as the search for investors, conclusion of subsoil use contracts, lending through STBs, assistance in marketing products to the enterprises of the region,” – Kassymbek noted.

There are now 11 special economic zones (SEZ) and 22 industrial zones (IZ) in the country.

In total, since the creation of the SEZ, 157 projects for the amount of more than 682 billion tenge have been launched and more than 11 600 jobs have been created.

This year, it is planned to launch 24 more projects worth 100 billion tenge, creating three thousand new jobs, and 20 more projects will begin construction.

115 projects amounting to 100 billion tenge were launched at IZ sites, about eight thousand jobs were created.

Also, work is under way to amend the legislation on special economic and industrial zones in terms of simplifying the procedures for allocating land plots, granting preferences, and reducing administrative barriers.

In conclusion, Zh. Kassymbek said that the results of industrialization for the current year will be summed up on December 6, the Industrialization Day.

“Within the framework of a televised conference, we plan to launch 18 projects worth 399 billion tenge. We also plan to show videos on 26 projects,” – Zh. Kassymbek concluded.

Akim of Zhambyl region Karim Kokrekbayev, Akim of Almaty Baurzhan Baybek, Deputy Akim of Aktobe region, Akim of East Kazakhstan region Daniyal Akhmetov also spoke during the meeting.

Following the discussion Bakytzhan Sagintayev noted that in the first nine months of this year, good progress has been achieved in implementing the industrialization state program. The Prime Minister expressed confidence that by the end of the year the regions will overcome the backlog in investments in fixed assets and catch up in all other areas.

First Deputy Prime Minister Askar Mamin was instructed to take these issues under personal control.

www.primeminister.kz

Published: 31 October 2017

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