Kazakhstan records growth in construction industry

12.03.2025, 21:00 3486

Kazakhstan’s economic growth picks up in January-February 2025

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The gross domestic product (GDP) in Kazakhstan expanded 5.4% in January-February 2025, the National Economy Ministry said in a report on Wednesday, Kazinform News Agency reports.

The National Economy Ministry said improved dynamics was seen in commodity producing and service sectors and industrial output accelerated to 5.7% thanks to the ongoing work aimed at unlocking the industrial capacity.

The January-February 2025 data indicate an 8.9% growth in manufacturing production, driven by the surge in machine-building (18.2%), food production (13.1%), production of building materials (21.6%), production of metal products (20.1%) and the chemical industry (9%). The country’s mining industry grew at a rate of 4.1%.

According to National Economy Minister Serik Zhumangarin, the construction industry in two months of 2025 was defined by strong growth rates, with the volume of works estimated at 408.1 billion tenge and the index of physical volume made up 112.8%. The total trade grew 6%, while transport and storage services rose 21.3%.

Among the significant contributors are wholesale trade enterprises, supplying grain, seeds and animal feed (5.8fold growth), pharmaceutical products (44.6% growth), cars and light commercial vehicles (38.8% growth). Grain shipments rose 43% to reach 2.4 million tons, while transportation of grain mill products increased by 12%, he said.

Zhumangarin went on to add that the export of high value-added products, especially compound feed, rose 5fold to 273,000 tons (56,000 tons in 2024), and that of vegetable oil grew 28% to up to 94,000 tons.

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12.03.2025, 11:35 1941

Business process reengineering increased science sector performance by 70%

Minister of Digital Development, Innovation and Aerospace Zhaslan Madiyev spoke at the Government session about the ongoing work on digitalisation of the scientific sphere, primeminister.kz reports.

He noted that the digital transformation of science is aimed at forming an advanced national ecosystem that relies on modern technologies and data-driven decisions. This approach ensures better public management of scientific knowledge.

Currently, 12 types of public services are provided in the field of science, all of which are available in an online format. By the end of 2024, more than 15,000 public services have been provided, of which about 95 per cent are provided in electronic format. As part of the digital transformation, 19 of the most popular business processes were re-engineered.

As a result, it was possible to improve the processes related to:

with the financing of scientific research (programme-targeted, grant funding, and commercialisation);
the issuance of accreditation certificates for subjects of scientific and/or scientific-technical activity;
and/or science and technology accreditation certificates;
with the encouragement of scientists, such as prizes and scholarships in the field of science.

As a result of re-engineering, the efficiency of business processes has increased by 70%," Zhaslan Madiyev stressed.

The Minister added that previously, in order to obtain a certificate of accreditation or apply for prizes and scholarships, it was necessary to apply in person to the territorial offices of the Government for Citizens or to the office of the Ministry. The process was accompanied by a large number of documents and depended on the work schedule of institutions.

Now, applications are submitted online, which has reduced the application processing time to 15 days with full automation.

We have also completely eliminated paper certificates and courier services, which saved the state budget by 150 million tenge. Thus, the application process has become more convenient, the bureaucratic burden has decreased, and the time for consideration of documents has been significantly reduced," Zhaslan Madiyev explained.

The speaker also said that Kazakhstan launched a ‘Single Window of the national innovation system’ on the basis of Astanahub.com.

In fact, as the Minister noted, it is an analogue of eGov, but for innovators, where the innovation and scientific community can in one place to access all major measures of state support.

A single window of the national innovation system offers solutions for different users, taking into account their needs, so that scientists, startups and businesses receive support and interact effectively on one digital platform," Zhaslan Madiyev specified.

It was noted that the Astana Hub ecosystem has already formed startups developing products in the field of deep tech and having a significant scientific base. Some companies have successfully monetised their developments and earned more than 10.6 billion tenge and created hundreds of jobs.

In conclusion, the Minister informed about the situation with 1% of subsoil users' liabilities and proposed a solution model based on digitalisation of processes.

Today, 1% of subsoil users’ liabilities is characterised by three main problems: low transparency in the allocation of funds, difficulties in monitoring and reporting, and insufficient competition due to limited awareness. It is proposed to digitise all processes through the Single Window of the National Innovation System and introduce an AI agent to monitor and analyse performance in real time. This approach will increase transparency, simplify reporting and ensure a level playing field for financing, promoting open competition among all participants," Zhaslan Madiyev summarised.

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07.03.2025, 13:58 21806

Government considers issues of economic liberalisation and privatisation rates

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Prime Minister Olzhas Bektenov held a meeting on economic liberalisation and privatisation. Reduction of state participation in economic processes and expansion of competition is implemented within the framework of the relevant Presidential Decree, primeminister.kz reports.

The progress of implementation of the Comprehensive Privatisation Plan for 2021-2025 was reviewed and measures to improve efficiency were discussed.

The revision and updating of the data of the State Property Register was completed. As part of further improvement of the privatisation process, amendments were made to the rules for the sale of objects, including the introduction of an ‘electronic wallet’ to ensure guarantee fees, an increase in the time for submitting bids for participation in the auction, as well as the publication of notices of sale on additional resources. In addition, amendments to the Law ‘On State Property’ have been developed to abandon direct sales and transfer property exclusively through auctions. To ensure transparency of the mechanism of land allocation, 100% of agricultural land has been digitised, except for desert and semi-desert areas.

To date, amendments have been made to administrative legislation aimed at protecting businesses from unjustified interference.

According to the Ministry of Finance, currently 392 objects of state property and quasi-public sector for the amount of 918.3 billion tenge have been transferred to the competitive environment, 69 objects are directed for reorganisation/liquidation. In addition, 21 objects are on auction and 155 on pre-sale preparation.

Following the results of the meeting, the Prime Minister instructed to intensify work on liberalisation of the economy, including by expanding the covered areas.

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06.03.2025, 13:04 21581

Olzhas Bektenov holds Economic Policy Council meeting

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At a meeting of the Council on Economic Policy chaired by Prime Minister Olzhas Bektenov considered measures to implement the instructions of the Head of State, given in the Address to the Nation "Fair Kazakhstan: law and order, economic growth, public optimism", primeminister.kz reports.

They discussed approaches to ensure a balance between monetary and fiscal policy to improve the balance of macroeconomic policy.

Emphasis was placed on improving the sustainability of public finances and the quality of economic growth with reliance on market mechanisms. Proposals on institutional strengthening of compliance with the system of budget rules and targets, increasing the role of the private sector in financing the economy, reducing systemic risks in the financial sector were heard.

Chairman of the National Bank Timur Suleimenov, Deputy Prime Minister - Minister of National Economy Serik Zhumangarin, Assistant to the President for Economic Affairs Kanat Sharlapayev, Chairman of the Agency for Regulation and Development of Financial Market Madina Abylkassymova, Chairman of the Agency for Strategic Planning and Reforms Asset Irgaliyev, as well as the leadership of responsible ministries attended the meeting.

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05.03.2025, 15:40 55161

Kazakhstan eyes around KZT50bn in tax revenue from marketplaces

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Nearly 20 marketplaces officially operate and pay taxes in Kazakhstan, Deputy Premier - National Economy Minister Serik Zhumangarin said during a briefing on Wednesday in the Majilis, Kazinform News Agency correspondent reports.

Temu and Pinduoduo obtained provisional registration and are VAT payers, said Zhumangarin, stressing that the same rules must be applied to other marketplaces.

According to him, if the total value of the consignment exceeds 200 euros and 31 kilos, the appropriate tax is charged. ‘In case it exceeds the limit, the cumulative customs payment of 15% is paid by the consumer,’ Zhumangarin said.

This year, we plan to collect around 50 billion tenge in tax revenue from marketplaces, including Temu, Pinduoduo, Alibaba, Amazon and so on. There are around 20 such companies, added the Kazakh Deputy Premier.

Earlier it was reported that the Kazakh government had proposed to fix the minimum standard VAT rate at 16%, up from the current 12% as well as an intermediate rate at 10% for certain industries and a full exemption for agricultural producers.

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05.03.2025, 11:41 56206

190 projects worth 1.5 trillion tenge to be implemented in manufacturing industry this year - Ministry of Industry and Construction

Minister of Industry and Construction of Kazakhstan Yersaiyn Nagaspayev at the Government session reported on measures taken to ensure the stable development of the manufacturing industry, primeminister.kz reports.

He noted that this year in the industry will be introduced 190 projects worth 1.5 trillion tenge. Also, 417 projects worth more than 15.3 trillion tenge have been launched. The projects will be financed by attracting both private investment and funds from the BVU and development institutions.

As of today, financing of manufacturing industry projects worth more than 1.1 trillion tenge is being worked out. In particular, for the implementation of major projects through the CDB, the need is 183.5 billion tenge. For 2025-2028, 800 billion tenge will be allocated for medium and small projects, including about 100 billion tenge to finance small industrial zones, for which there is demand from small businesses. These measures will ensure the growth of industry, create new jobs and improve the competitiveness of economic sectors," Yersaiyn Nagaspayev emphasised.

According to the department, today financing of manufacturing industry projects worth more than 1.1 trillion tenge is under consideration. In particular, for the implementation of major projects under the CDB, the need is 183.5 billion tenge. The FRP for 2025-2028 - 800 billion tenge for the implementation of medium and small projects, including about 100 billion tenge to finance small industrial zones, for which there is demand from small businesses. These measures will ensure industrial growth, create new jobs and improve the competitiveness of economic sectors.

For the leasing of vehicles for the renewal of public transport and special equipment through the DIF for 2025-2026, the allocation of about 109 billion tenge is being considered. As a result, about 900 new buses will be delivered in the next two years, as well as more than 800 units of special vehicles for emergency and municipal services.

Yersaiyn Nagaspayev also spoke about plans to commission housing in Kazakhstan this year. According to him, to achieve the 2025 target of commissioning 19 million square metres of housing, the issue of allocation of funds in the amount of 500 billion tenge through the Baiterek line is being additionally studied.

In particular:

300 billion tenge to buy out 21 thousand rental housing;
120 billion tenge for the supply of engineering and communication infrastructure;
80 billion tenge to fund Otbasy Bank's ‘2-10-20’ and ‘5-10-20’ mortgage programmes.

The Ministry will continue to work on effective utilisation of allocated financial resources, support of strategically important initiatives and creation of conditions for sustainable economic growth," Yersaiyn Nagaspayev concluded.

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05.03.2025, 09:33 56616

Guarantee fund for lending to large businesses to appear in Kazakhstan

Chairman of the Board of NUH Baiterek JSC Rustam Karagoyshin at the Government session reported that in order to intensify lending to the economy, especially large investment projects, it was decided to create a Guarantee Fund for large businesses, primeminister.kz reports.

The Fund will serve as a tool to involve the liquidity of second-tier banks and increase the attractiveness of financing for both private and public participants.

The main idea of the mechanism is that the state assumes part of the financial risks associated with lending to large projects. This will improve the availability and conditions of financing, which, in turn, will contribute to the development of initiatives significant for the economy. The guarantee fund will be created under the holding company and will be aimed at supporting projects worth 7bn tenge or more.

This fund will be an effective tool to address the issue of sufficiency of collateral for large and strategically important projects. The project initiator must ensure its own participation in the amount of at least 20 per cent of the project cost. The remaining 80 per cent of the project cost will be financed by a loan from BVU and DBK. At the same time, up to 30% of the financing amount will be covered by the holding company's guarantee for creditors," Rustam Karagoyshin explained.

He also noted that in order to achieve the implementation of the Government's objectives to increase GDP in 2025 to 7%, the holding plans to allocate about 8 trillion tenge to support entrepreneurship, housing development and implementation of key national and investment projects with a further increase in financing up to 10 trillion tenge by 2027. These goals require capitalisation of the holding at the rate of 1 trillion tenge annually.

In 2024, the total contribution of the holding company to support sectors of the economy is about 4 trillion tenge.

The business will be incentivised by equating the interest rate at 12.6% (mixing capital and market money) for end borrowers. The main objective of this initiative:

offering real sector enterprises a fair rate without distorting the financing market, including stopping the practice of ‘cannibalism’ (duplication of products, migration of projects between support operators) between financiers and ‘arbitrage’ on rates (different rates and unequal access of market participants, as confirmed by the observations of Supreme Audit Chamber of the Republic of Kazakhstan);
reducing the burden on the country's budget with a gradual withdrawal from the practice of subsidising.

With the support of the economy in 2025 up to 8 trillion tenge (taking into account the effect of the TNA influence in project financing) will make it possible to make an additional contribution of holding projects in GDP growth up to 1.3 per cent (GDP forecast 2025 growth of 6.5 per cent, MNE data).

As part of the Head of State's instruction announced at a recent Government session, it is planned to launch a Guarantee Fund for SMEs this year. The capital of this fund will be formed through the participation of the capital of the Damu Fund, mandatory annual contributions of the BVU, as well as funds from the state, large companies and other interested organisations. Within the framework of the creation of the guarantee fund, the functions of Damu Fund will be supplemented with new tasks: the product line of the guarantee instrument will be expanded, the amount of guarantees provided will be increased, and the list of sectors of the economy subject to guarantee will be expanded. It is planned to issue guarantees for new products on the principles of irrevocability and unconditional nature," Rustam Karagoyshin noted.

The launch of the guarantee fund will allow to increase the portfolio of guarantees to 1 trillion tenge by 2027 (+148% compared to 2024) and support more than 50 thousand projects annually, which is five times more than in 2024. At the same time, the main priority will be given to projects that reduce inflation imports into the country.

As part of the implementation of the Energy and Utilities Sector Modernisation National Project for 2025-2029, the holding has been designated as a financial operator.

Thus, the holding will apply financing instruments of the Development Bank of Kazakhstan, BVU, as well as through bonded loans of the Kazakhstan Housing Company (KHC), and other market participants to support the activities of natural monopolies. It also provides for budgetary lending, buyout by the financial operator of bonds of natural monopolies (SEM) from the private sector, as well as financing of SEM (coal-fired generation) through leasing financing through the Industrial Development Fund. Additionally, KJK will act as an agent to provide subsidies for SEM.

To fulfil the objectives of the National Project, the holding plans to finance projects of natural monopolies in the amount of 4.7 trillion tenge over a five-year period. At the same time, in 2025, the need for financing is 283 billion tenge based on the need to cover red zones," Rustam Karagoyshin specified

In general, according to him, the total cost of the holding's promising projects today is more than 25 trillion tenge with the amount of requested financing up to 10 trillion tenge.

Of these, investment projects with the amount of financing in the amount of 8.4 trillion tenge and working capital support programmes - in the amount of 1.6 trillion tenge, of which 700 billion tenge for agro-industrial complex will remain within the framework of subsidised rate, the rest at market rate.

During the Government session, a sectoral breakdown of the holding company's large investment projects worth more than 7 billion tenge, which may be considered by the Guarantee Fund for Large Business, was also presented.

The preliminary amount of financing of such investment projects that can be guaranteed by the holding is 6 trillion tenge.

It was noted that in accordance with the order of the Head of State the volume of preferential lending for spring field and harvesting works through Agrarian Credit Corporation JSC will reach 700 billion tenge, 202 billion tenge has already been issued. Of these, 100 billion tenge was allocated in advance in December last year. If there is a shortage of collateral, farmers can use the guarantees of the Damu Fund.

To increase the pace of renewal of the machinery and tractor fleet, KazAgroFinance launched a programme of preferential leasing of domestically produced agricultural machinery at an annual interest rate of 5%.

In addition, financing of investment projects in the agro-industrial complex will be continued with a priority on solving the tasks of reducing import dependence and stabilising prices. To this end, projects will be financed for the processing of agricultural products and food production with a focus on socially important goods, the introduction of irrigation systems, indoor vegetable production, the development of production and marketing infrastructure, and support for fodder production.

As part of the export strategy, insurance, reinsurance and guarantees for domestic producers are being expanded. An important task is to enter new markets and provide comprehensive solutions for Kazakhstani exports.

In this regard, the holding is launching a trade fund with a target size of $200 - $500 million and forming a pool of export-oriented projects, including the development of poultry enterprises and crop production.

Key export areas:

Consolidation of large producers and traders of crop products (grains, oilseeds and pulses) to expand export channels;

creation of stable export supply chains and expansion of export geography (PRC, Central Asia, EU);
reduction of speculative factors in pricing and market stabilisation;
partnership with major foreign buyers (COFCO and others);
investment support and involvement of the private sector in trade activities;
improvement of conditions for agro-producers on transport and logistics services.

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04.03.2025, 21:38 56406

Olzhas Bektenov instructs to conclude within two weeks Investment Agreement with ESTA Construction on construction of fertiliser plant worth $1.3 billion

Prime Minister of the Republic of Kazakhstan Olzhas Bektenov met with General Director of ESTA Construction Mustafa Toprak. They discussed the construction of a plant for the production of urea and ammonia, primeminister.kz reports.

The $1.35bn project envisages the creation of a large gas chemical production facility in Mangystau region, near the Kuryk seaport. The location of the plant was chosen for its logistical advantages to ensure optimal conditions for exporting products across the Caspian Sea. The plant will produce up to 700,000 tonnes of urea and 42,000 tonnes of ammonia per year, which will reduce dependence on imported fertilisers and provide the country's agricultural sector with high value-added products. The project will employ up to 3,000 specialists and will create 400 permanent jobs.

Today, Kazakhstan has established production of three types of fertilisers: ammonium nitrate, ammophos and ammonium sulphate. However, with a scientific demand of 3.2m tonnes, domestic capacity meets only 56% of demand, producing about 1.8m tonnes of fertiliser a year.

Olzhas Bektenov emphasised that the creation of own urea production will reduce dependence on imports and strengthen food security.

The Head of State pays great attention to the development of the country's agro-industrial complex. Last year we had a record harvest. The government has allocated 700 billion tenge to support agrarians. An important issue is the provision of quality and affordable mineral fertilisers. Therefore, your project is of interest to us from the point of view of meeting the domestic demand for urea, as well as its export," Head of the Government of the Republic of Kazakhstan noted.

In addition, during the meeting the measures of state support for agricultural producers were discussed. Currently, Kazakhstan has a subsidy programme covering up to 60% of the cost of fertilisers, and since March 2024, a mechanism of advance subsidies has been introduced, thanks to which funds are transferred to producers in advance to reduce the cost of production. Last year, 46.4 billion tenge was allocated for these purposes, and 35 billion tenge is envisaged for 2025.

As a result of the meeting, the authorised state bodies were instructed to expedite all procedures and within two weeks to submit for signature a draft Investment Agreement with ESTA Construction, which will launch the implementation of a major investment project.

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Kazakhstan records growth in construction industry

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