Almaty in 2019: Industrial production growth, investor support and educational success

Friday, 31 January 2020, 21:49:00

In the light of the instructions of the President of Kazakhstan Kassym-Jomart Tokayev, to systematically create jobs and increase the level of income of citizens, the city of Almaty relied on the formation of new economy sectors. The promising areas are the knowledge economy, digitalization, creative industries, tourism industry, service sector and others. As the results of the socio-economic development of the metropolis for 2019 show, the course has been chosen correctly. Read more about the development of the city in 2019, the implementation of state programs and the prospects of the city in the review by

Almaty is the largest metropolis of Kazakhstan, located in the foothills of the Trans-Ili Alatau. Until 1997, the city was the capital of the state. At the moment, Almaty is a scientific, cultural, historical, industrial and financial center of the country.

Powerful human capital is concentrated here. The city today has formed as the economic center of the country. Business is actively developing here. In a word, Almaty today makes a significant contribution to the development of the country.

Over 46 thousand people employed in industry

In the Akimat of Almaty, it was noted that in January-December 2019, industrial production amounted to 957.1 billion tenge. The growth compared to the same period in 2018 was 4.5%.

For the development of the industrial sector, the Almaty Industrial Zone operates. The total area of ​​the territory is 490 ha.

According to the Department of Statistics of Almaty, 1,500 companies are operating industrial enterprises. The number of people employed in the industrial sector is 46.3 thousand people.

Industrial enterprises produce reinforced concrete products, asphalt, concrete, aluminum profiles, paints and varnishes, etc. In 2019, construction materials enterprises produced products worth 54.3 billion tenge, or 107.7%.

Building materials are exported to the CIS countries. The largest companies are Temirbeton-1 LLP, AZMK LLP, InnoTrack LLP, KSM Tekhvid LLP, Alyugal LLP, ALPROF LLP, LCIMK LLP, Salavat BS LLP, LLP Asphalt Concrete-1, etc.

Flour, sweets and butter: What is produced in Almaty

There are 225 actively operating enterprises in the food industry in Almaty. This sector accounts for 29% of the city-wide manufacturing industry.

The main areas are: meat processing (Becker & K LLP, MPZ BIZHAN LLP), fruit and vegetable processing (Tsin-Kaz LLP, KazsnekSauda LLP, GoldenFoodCompany LLP), production of oils and fats (JSC EFC, MasloDel LLP and EFKO Almaty LLP), production of dairy products (Agroproduct, Increasefood, and MZ Solnechny), production of bakery and flour products (Aksay Bread Mill LLP, LLP Bakery Factory Almatynan, Almaty Flour Mill LLP), manufacture of other food products: confectionery (Rahat Confectionery factory), tea (Teahouse, Tealand, Almaty tea), mayonnaise, ketchup, yeast.

The main export directions of the industry are the confectionery (Rahat JSC) to the countries of near and far abroad (42 countries) and oil and fat products (EFC JSC, MasloDel LLP and EFKO Almaty LLP) to the countries of Central Asia and China.

Implementation of SPIID: Launching 12 projects and creating over 1 thousand jobs

In 2019, 12 projects worth 47.5 billion were implemented with the creation of 1,163 jobs, including six companies worth 41.6 billion tenge were launched in the industrial zone with the creation of 848 jobs.

In 2020, it is planned to launch 12 projects in Almaty for 13.5 billion tenge with the creation of 1,127 jobs.

Ninety-nine entrepreneurs involved in program “The Economy of Simple Things”

The city is actively implementing the program "The Economy of Simple Things." Over the period of the Project Office, 99 business entities with 79.8 billion tenge were involved in the Program.

As of Jan. 17, 2020, 14 projects were funded in the amount of 6.5 billion tenge, 14 projects were approved in the amount of 6.3 billion tenge in second-tier banks. Sixteen projects worth 32 billion tenge are under consideration in the second-tier banks. Forty-eight business entities with 34.1 billion tenge are potential participants in the program. Of these, approved projects: SamalBіlіm LLP, Shin-Line LLP, OrkenAlem IP, Abudbaitova IP, Aizhan Author's House.

Priority — measures to improve investment climate

According to the Akimat of Almaty, the volume of investments in fixed assets in January-December 2019 amounted to 821 billion tenge with an increase of 8.3%.

In the metropolis, investors are provided with wide support tools. So, in the House of Investments on the principle of one window provides service support, search for partners and support of investment contracts. There are sites with special conditions — special economic and industrial zones.

In order to improve the investment climate and increase the interest of potential investors in the implementation of new projects in the city of Almaty, work is underway in the following areas.

FIRST. The mechanisms for financing entrepreneurship and the expansion of lending to small and medium-sized businesses under existing republican programs were expanded through:

  • the creation of the AlmatyFinance financial organization, which will allow issuing medium and large amounts of financing to business entities that are not attractive for STBs, but at the same time relate to priority sectors of the city’s economy.
  • creation of a microfinance organization together with the regional chamber of entrepreneurs.
  • creating a unified regional program by combining regional programs Zhibek Zholy, Almaty Onim, Almaty innovation, Almaty tourism.
  • enhancing the role of the republican program “The Economy of Simple Things,” as well as the programs of the national development institutes KazAgro, Baiterek in financing city projects.

SECOND. Creation of the Qolday Enterprise Center to overcome administrative barriers, reduce the time and financial costs of the business.

The main task of the Center is to create a single window for business entities with the exception of direct contact of entrepreneurs with state bodies, which will reduce the discontent of city entrepreneurs with the current procedure for issuing various permits.

THIRD. The National Investment Strategy for Attracting Investments reloaded the activities of Almaty SEC with the creation of a full-format investment block AlmatyInvest. AlmatyInvest within the framework of the SEC will be the main driver of attracting investments, implementing anchor projects, creating favorable conditions for the development of large and medium investment projects in the city.

Almaty Invest organizes targeted work with investors, from the identification of the project, its packaging and targeting to the commercial launch of the project and post-investment support.

Almaty ranks first in the number of entrepreneurs

In total, 277,470 small and medium-sized enterprises were registered in the city, which is 1% higher than the indicator for the same period in 2019. The number of active SMEs is 190,190, which is 9% higher than the same period in 2019. This is about 14% of the share of Almaty in the total number of operating small and medium-sized enterprises in the republic, thereby taking first place in the Republic of Kazakhstan.

The number of employees in SMEs in January-September 2019 amounted to 600,065 thousand people, which is 1.1% higher than the same period in 2018.

In January-September 2019, the volume of output of SMEs amounted to 5,313 billion tenge.

In 2019, 5,292 million tenge was allocated from the local budget for the implementation of the Business Roadmap 2020 State program for business support and development.

Within the framework of the State Program for the Development of Productive Employment and Mass Entrepreneurship for 2017-2021, Enbek financed 199 projects for 2,704 million tenge.

How housing programs implemented in Almaty?

In 2019, 3,604 apartments were distributed as part of the Nurly Zher State Housing Program, of which: 1,245 apartments were allocated in the Loan Housing Department of MIO through JSC Housing Construction Savings Bank of Kazakhstan.

In the framework of the program in the direction “Rental housing with a purchase,” 305 apartments were distributed through the Samruk-Kazyna Construction JSC through the e-Government web portal.

As part of the Housing for Young Families program, 100 apartments are distributed through the PEP.

Within the framework of the Program, 31 apartments were distributed through the PEP in the direction of JSC Kazakhstan Mortgage Company IO.

In July 2019, within the framework of the Program, the implementation of the direction “Lending to low-income citizens for the purchase of housing” (the Republican program “Funds of the Year”) for the waiting list of the city of Almaty in the categories of “large families,” “single-parent families” and “families with or raising children disabled people.”  As part of this area of ​​the Program, 236 waiting people received preferential housing loans.

In 2019, in the framework of the program “Towards rental housing without the right to purchase,” with the transfer to the municipal housing fund, 637 apartments were distributed to the waiting list of the local executive bodies, including 496 apartments for families with or raising children with disabilities, 141 apartments for large families .

In October 2019, a reception was announced under the Program for the direction of non-repayable rental housing for working youth under 29 years old for 1,050 apartments for up to five years.

In order to achieve the objectives of the Head of State’s first initiative “New Housing Opportunities for Every Family,” a housing program aimed at improving housing conditions for every Kazakhstani with affordable credit conditions was first adopted.

7-20-25 is the most profitable mortgage program with a low interest rate of 7%, an initial payment of 20% with a maturity of up to 25 years. To date, 2,986 loans have been issued under this program.

In addition, within the framework of the city budget lending program “Baqytty Otbasy,” to provide preferential housing loans to the waiting list of the local executive body in the large families category, 284 large families were provided with housing, and 284 housing certificates were issued accordingly.

Employment promotion measures reached over 37 thousand people

According to statistics, in the city the labor force for the III quarter of 2019 amounted to 987 thousand people, including the employed population — 935.2 thousand people.

The number of unemployed amounted to 50.3 thousand people, the unemployment rate was 5.1%, decreasing by 0.1% compared to 2018.

In 2019, the implementation of the Development of Productive Employment and Mass Entrepreneurship for 2017-2021 State Program was continued.

Since 2017, 7,162 people have been covered by technical and vocational education in the framework of the first direction, of which 2500 people started in 2019.

Today, 2,573 people went to short-term vocational training. Of these, 1,480 people completed training, 69% found jobs.

The third direction. In 2019, 48,032 people applied to the Employment Center for assistance in finding employment.

In order to prevent the growth of unemployment and maintain stability in the labor market, the Deputy Akim of Almaty approved the Comprehensive Employment Promotion Plan for 2019, which provides for the provision of active measures to promote the employment of more than 33 thousand citizens seeking work.

The comprehensive plan was implemented by 135%, 37 988 people were covered by measures to promote employment, including:

  • found for permanent work — 21,177 people;
  • social jobs — 1,220 people;
  • youth internship — 1,142 people;
  • community service — 3,930 people;
  • vocational training — 2,573 people and etc.

This year, small and medium-sized businesses planned to create 28 thousand jobs. In total, 47,428 jobs were created in 2019, of which 35,168 were subjects of entrepreneurship, as well as 1,980 under the state programs Nurly Zher, 206 under the Nurly Zhol, 1,083 at the State Design Bureau, 1,023 at the SPIID, and Enbek — 292, regional development — 800, development of education and science of the Republic of Kazakhstan — 298, projects implemented as part of PPP — 78, program of development of territories — 248, program of development and functioning of languages ​​of the Republic of Kazakhstan — 152, Digital Kazakhstan — 20.

In order to solve the problem with the informally employed population, from Jan. 1, 2019, a single aggregate payment was introduced that does not require tax reporting. In total, 7,843 people became ESP payers.

With the assistance of the city akimat and Atameken NCE, 12 mobile employment centers operate in places of mass congestion and residence of the unemployed in eight districts of the city. Sixty coordinators and consultants collect personal data, test applicants who apply, and make a personal portrait of the applicant.

Over 12 thousand families received targeted social assistance

In order to increase the well-being of the low-income population, the city of Almaty provides targeted social assistance, housing assistance, as well as 16 types of social benefits.

In 2019, the assistance was paid to 12,748 families in the amount of 7,134.8 million tenge, housing assistance — to 1,715 people worth 37.7 million tenge. Social payments (16 types) covered 25,770 people and amounted to 1,980 million tenge.

The Baqytty Otbasy city program is actively implemented, providing for 13 support measures in the context of various programs.

Four types of payments have been increased in the implementation of the Baqytty Otbasy program: housing assistance (from 10% to 5), social assistance for people in difficult situations (from 10 MCI to 20 MCI), reimbursement of costs for individual metering devices (from 2 MCI up to 3.4 MCI per device), reimbursement of expenses for training disabled children at home (from 9 MCI to 12 MCI).

New social payments have been introduced: for students of high schools from large families in the form of monthly scholarships (10 thousand tenge each), housing certificates for large families in the amount of 1 million tenge per family for making an initial payment when receiving housing.

In 2019, in all districts of the city, nine Baqytty Otbasy centers were opened, which were visited by 42 thousand people. In the regional centers, the program for the development of women's entrepreneurship “ISKER ANA” was implemented. The centers jointly with the Atameken NCE conducted basic trainings and training courses. As a result, 827 people created business projects, 1,016 people found jobs. Large families — 617 people, and low-income families — 416 people received free grants up to 200 MCI.

Digitalization: Tax payments to the budget due to paid parking lots increased 10 times

Within the framework of the Business Roadmap-2025 Program, small business grants from 2 million tenge to 5 million tenge are provided to small businesses starting entrepreneurs on a free and non-refundable basis for implementing innovative business ideas in priority sectors of the economy.

This year, 205 million tenge has been allocated for the implementation of the program, which is seven times more than the level of 2012.

On the territory of the city there is a special economic zone "Park of Innovative Technologies." The great potential of the PIT SEZ is the emerging innovative industrial site with tax preferences.

To date, 167 companies of the Park have attracted 31.8 billion tenge, produced products worth 175.7 billion tenge, and about 5 thousand jobs have been created.

In addition, as part of the Industry Digitalization Program, a Roadmap was developed, which included 22 projects worth 3.5 billion tenge.

To date, 10 high-tech enterprises in various sectors of the economy have been launched in the city, of which four enterprises were launched in 2019. In 2020, it is planned to launch five production facilities.

In the field of security, a system of photo and video recording of traffic violations has been introduced. In 2019, 400 posts were established as part of the Sergek project.

The share of non-cash fare today is 98% (Onay), the income of carriers increased by 60%.

The A-Parking system covers 15% of the city’s parking spaces, tax payments to the budget increased 10 times.

In the housing and utilities sector, the level of heat prioritization is 90%, water supply — 91%. More than 7.6 thousand heat meters and more than 32 thousand water were installed.

Schools and medical organizations are 100% provided with Internet access. 89% of the population have electronic health passports. 39 digital aid stations have been installed. The situational center of the city of Almaty has been created. Integrated 16 city systems. 

In 2019, 98.4% of college graduates employed during first year after graduation

Currently, the coverage of children with pre-school education and training is 87%. In 2019, three state-run kindergartens with 550 beds and 162 private kindergartens with 3,174 beds were commissioned. In addition, the construction of four state kindergartens with 640 places, as well as the construction of a kindergarten with 150 places as part of social responsibility are underway.

During the year, effective measures were taken to attract educators, as a result of which the share of teachers in the specialty "Preschool education and training" increased from 37% to 49%. Work to increase the number of teachers with basic education continues.

Since 2016, 97% of students in grades 1-10 have switched to updated education content according to the experience of the Nazarbayev Intellectual Schools.

In this direction, more than 15 thousand elementary school teachers and subject teachers took advanced training courses.

In 2019, to reduce the shortage of student places, a school for 600 student places was commissioned in Alatau district, an extension of 300 places to a school in the Bostandyk district. Schools with 600 places in the Kolkhoz microdistrict in Turksib district and 1200 places in the Mamyr microdistrict in the Auezov district, 5 outbuildings for schools for 2017 places are under construction, four schools with 2,240 places are planned to be built through private investment, the construction of two schools have been launched and installation work is underway. In 2020, it is planned to begin construction of eight schools with 12,900 places in the framework of PPP. To liquidate the three-shift school No. 196 in the Rakhat microdistrict in the Alatau district, it is planned to build a school with 1,500 places. A land plot has been identified, work has begun on the development of design estimates.

The state educational order is placed in 48 colleges, with coverage of over 34 thousand students. Specialists are trained in 99 specialties and 167 qualifications. In the current academic year, the state educational order admission plan amounted to 8,650 places.

It is planned until 2025 to increase the enrollment of students studying under state orders, dual training up to 30% or 8,000 students. In 2019, the proportion of college graduates who studied under the state order, were employed and employed in the first year after graduation, is 98.4%, while the plan for the Republic of Kazakhstan is 95%.

To implement inclusive education for children with developmental disabilities, all necessary conditions are provided, technical access is created in all educational institutions of the city (elevators in new schools, ramps, tactile paths, call buttons, sanitary rooms, etc.).

Inclusive education implemented:

  • in 150 schools, involving 1,678 children;
  • in 54 kindergartens, involving 1,350 children;
  • at 19 colleges, encompassing 405 students.

The staff of defectologists, speech therapists and educators (tutors) was allocated, in general, more than 4 thousand teachers work in inclusive classes.

Number of foreign tourists in Almaty increased by 26%

The number of tourists in Almaty increased by 25% and amounted to 984 thousand. The number of foreign tourists in the city of Almaty showed an increase of 26% and amounted to 335 thousand, and the number of domestic tourists was 649 thousand with an increase of 24%.

In just one year, the number of bed-days provided increased by 13.7%, amounting to 1.4 million, the volume of services rendered — by 28%, and placements amounted to 23.5 billion tenge.

Along with the growth of tourists, the number of placements has increased. In just one year, the number of hotels and hostels increased from 285 to 341 places by 28.6%.

Development of housing and communal services in Almaty

A comprehensive work is underway to develop the housing and communal services of the metropolis. As noted in the city akimat, all work on providing water supply and sewage to 105 thousand residents of 23 micro-districts will be completed in 2023. Currently, the construction of outdoor lighting on 208 streets is completed, next year lighting will be installed on 1,176 streets.

Water and Sewerage

97.7% of citizens have access to central water supply, 82% have access to sanitation. The total length of water supply networks is more than 3.6 thousand km, of sewer networks — 1.9 thousand km.

Over the past three years, 737 km of water supply networks and 603 km of sewage systems have been built and reconstructed. In 2019, 153.5 km of water supply networks and 133.5 km of sewerage were built at 45 facilities. As a result of the measures taken, it was possible to reduce depreciation by 5.5%.

In 2020, it is planned to build 150.3 km of water supply and 138.7 km of sewerage at 30 facilities.

Power supply

Based on the level of electricity supply of 100%, only the reconstruction of existing networks and facilities is carried out. The length is 7.6 thousand km, depreciation is 65%.

In 2019, 150.19 km of electricity supply networks were reconstructed and repaired through JSC AZhK.

Heat supply

In general, the city is provided with centralized heat supply from three heat sources through JSC AlES (CHPP-1, CHPP-2, ZTK) and 83 boiler houses of ATKE LLP, this is 76% of the citizens, the remaining 24% receive heat from autonomous heat sources and private homes are heated by gas. The total length of heating systems is 1.2 thousand km, of which 61.1% or 758 km are worn out.

In 2019, 20.4 km of heating systems were reconstructed and repaired. In 2020, it is planned the reconstruction and ongoing repair work of heating systems through the AlTS LLP for 14.3 km.

Gas supply

The total length of gas networks in the city is 5.1 thousand km. In 2019, work was carried out on the construction of 130 km of gas networks, today the gas supply level is 99%. In 2020, at the expense of funds of KazTranGas JSC, reconstruction of gas pipelines for 29.2 km is planned.

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