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Small and medium-sized enterprises, investment, and exports: What Almaty region focused on

Saturday, 23 May 2020, 22:19:03

President of Kazakhstan Kassym-Jomart Tokayev pays special attention to the development of regions and social security of citizens. In the Almaty region, key state programs are being successfully implemented. In general, in the region following the results of four months in 2020, growth was achieved in all areas of the economy. Read more about the results of socio-economic development of the Almaty region in a review by PrimeMinister.kz.

 

The pool of investment projects of Almaty region includes 447 projects

Special achievements are worth noting in the field of attracting investments.

The investment component of the development of the region is provided for the short and long term.

For this purpose, a pool of investment projects of the Almaty region has been formed, which currently includes 447 projects, of which 258 projects are at different stages of implementation and provide a steady flow of investment in the region in the foreseeable future (2-3 years). While 189 projects under development provide for the industrial development of the region until 2029.

Successfully implemented investment projects of the region are indicators of its economic development and prosperity.

At the same time, in order to assist investors in the region, since 2014 the Regional Center for Development of the Almaty Region LLP has been operating, which performs the functions of a front office in accordance with the principles of Single Window and Green Corridor.

In 2019, a modern front office was opened in Almaty. By the current time, the Center has worked out an effective scheme of interaction and cooperation with investors, which allows, with minimal efforts of the project initiator, to timely receive the necessary approvals and permissions from government bodies within the framework of the investor's authority to represent interests.

Also, last year, in order to increase the flow of foreign direct investment, increase the rating of the region, and present investment potential in Taldykorgan, the International Investment Forum “Jetisu Invest 2019” was held. The forum attracted over 400 delegates from nine countries of the world, 13 memorandums for 324.4 billion tenge were signed, 30 exhibitors were presented. The forum laid the foundations for building a chain of foreign institutions – region. In the matter of attracting investments, feedback has been established with seven embassies.

One of the indicators of active work to attract investment in the region is the study of the issue of the implementation by the largest American company Tyson Foods of the construction of a meat processing plant for cattle meat processing in the region with a capacity of 180 thousand tons per year.

In addition, within the framework of measures to attract investment, a specialized investment portal invest.alm-reg.kz has been created and is openly available with a mobile version in Kazakh, Russian and English. On the portal you can find all the necessary information for investors (state support measures, a map of land plots, free land plots, ongoing investment projects, hotels, second-tier banks and much more). Work is underway to fill information, maintain its relevance and promote it on the Internet.

Thus, in the region, the issues of attracting investments, innovations and the success of the implementation of investment projects are centralized and are under special control of the regional leadership.

The investment portfolio of the region testifies to the effectiveness of the built mechanism, which does not allow bureaucratic obstacles to the important issue of creating a positive investment image of the region.

In general, the measures taken in 2019 attrected 641.2 billion tenge of investments to the Almaty region with an increase of 7%, of which 82.4% were extrabudgetary investments. The plan for 2020 is 760 billion tenge. At the same time, over the 4 months of this year, the volume of investments in fixed assets amounted to 122.8 billion tenge.

 

A significant role in the development of the regional economy is played by the agro-industrial complex

The sown area is increasing annually. For example, the sown area this year compared to last year increased by 4.9 thousand ha and brought to 966.5 thousand ha.

According to the regional department of agriculture, constant attention is paid to the development of priority crops for the region. So, if last year 14 thousand hectares were sown with sugar beets, this year it is already 16,100 hectares.

The sown areas of corn continue to expand in the region. If last year 81,728 hectares were sown by the “queen of the fields,” this year 83,496 hectares are already sown.

Potato, which this year will occupy 39,948 ha, is not ignored.

In total, this year in the Almaty region sown area is 966.5 thousand hectares compared to 961.6 thousand hectares last year. 33.8 thousand pieces of agricultural machinery were involved in field work.

It is worth noting that for lending to spring field work since the beginning of the year, the joint-stock company Agrarian Credit Corporation granted 65 borrowers loans amounting to 767.7 million tenge.

As a permanent support to agrarians of the region, through RIR SPK Zhetysu JSC, 14.2 thousand sowing pieces of high-yielding sugar beet seeds were purchased for 548 agricultural producers in the region.

According to the akimat of Almaty region, 13.9 billion tenge of investments were attracted to the agro-industrial complex, including 7.9 billion tenge in agriculture and 6 billion tenge in food production.

In January-March of 2020, agricultural products were exported at $41.2 million, which is 35.5% more than the same period in 2018. The export of processed agricultural products increased by 27.6% and exported goods by $27.3 million.

In total, more than 400 agricultural processing enterprises operate in the region; in 2019 they produced food products in the amount of 227.9 billion tenge, for 4 months of 2020 – for 89.3 billion tenge.

 

About 1,500 industrial enterprises operate in the region

In the Almaty region there are 1,407 industrial enterprises, of which 32 large, 64 medium and 1,311 small. They employ more than 85 thousand people. At this stage, almost all enterprises in the region are operating normally with strict observance of sanitary and disinfection measures and regulations.

According to the regional department of entrepreneurship and industrial and innovative development, the volume of industry in the region in January-March 2020 amounted to 242 billion tenge. The share of manufacturing in the total industry is the highest in the republic – 86.6%.

In 2019, the volume of manufacturing in the region amounted to 821.9 billion tenge. During the reporting period, the industry increased the production of beverages – by 12.7%, in the light industry – by 29%, in the pharmaceutical industry – by 20.1%, finished metal products – by 38.9%, in mechanical engineering – by 60%.

The department notes that the overall increase in industrial production was achieved due to an increase in food production volumes by Mareven Food Tien Shan LLP, expansion of the assortment and markets of the largest producer of confectionery products, Hamle Company LTD, and an increase in flour production of Asia Agrofood JSC.

An important contribution to the total volume was made by manufacturers of juices and soft drinks. Among them are Coca-Cola Almaty Bottlers, RG Brands Kazakhstan, Galans Botlers.

A significant role was also played by the increase in the volume of pig iron by TGPK LLP by 8 times. So, if in 2019 the enterprise produced 5.8 thousand tons of products, then in 2020 it is already 46.7 thousand tons.

It is important to note that in order to prevent and prevent the spread of coronavirus infection, according to the decisions of the chief state sanitary inspector of the region, strict compliance with sanitary and preventive measures is ensured at all enterprises in the region, which is constantly monitored.

In addition, in connection with the introduction of quarantine in Almaty with the assistance of the regional akimat, more than 1,000 employees of 30 enterprises are located in three districts of the Almaty agglomeration and the city of Kapshagay.

As the press service of the akim of the region emphasizes, on behalf of the head of the region, work has been started in the Almaty region on sewing medical masks, which many enterprises in the region have joined. Every day, only one pharmaceutical company Dolce-Pharm LLP produces more than 150 thousand medical masks. About 70 thousand masks for its employees and on request for other companies are produced by Universal, LLP, Zharkent Polypropylene Plant, ZhKPZ, TEXTIL MARKET, Coca-Cola Almaty Botlers, Altyn Zhuldyz, company CLOTWELL, PTZ Zeta and other small enterprises. 

 

In Almaty region, export supplies carried out by more than 30 producers

The main export trading partners are Russia, Kyrgyzstan, Uzbekistan, Afghanistan, Tajikistan, Mongolia, Turkmenistan, China.

The volume of export of manufacturing in 2019 amounted to $387.2 million. In January-February of 2020, the volume of export of manufacturing was $54.1 million.

In order to enter foreign markets, discuss problematic issues, and establish business ties, industrial enterprises of the region actively participate in various international exhibitions in the republic and countries of the near and far abroad.

Together with development institutes, work is ongoing to provide government support measures to exporting enterprises.

In 2019, the Export Insurance Company KazakhExport JSC provided support to 11 export credit and documentary credit insurance companies. The costs of promoting goods for export to 12 enterprises were also partially reimbursed.

This year, work in this direction continues. On March 12, the acceptance of applications for reimbursement of expenses for the promotion of exports began. Explanatory work is carried out among enterprises to participate in the program and prepare a package of documents.

The implementation of large investment projects in the field, including with the participation of multinational companies, also had a positive impact on the development of non-resource exports of the region.

Launched as part of a teleconference with the participation of the Head of State, Mareven Food Tien Shan LLP in 2019, 30% of production was sent to neighboring countries and Afghanistan. In 2020, it is planned to increase exports to 60%.

 

Launched in 2019, the Lukoil lubricants production plant plans to produce 40 thousand tons of products this year, of which 20% will be exported to the countries of Central Asia, China, Iran.

 

Number of SMEs increasing every year

Today in the Almaty region there are over 121 thousand small and medium-sized businesses. In January-December 2020, 258.8 thousand people were employed in small and medium-sized businesses, which is 2.7% higher than in the corresponding level in 2018.

The volume of output for 12 months of 2019 increased by 7% compared to the same period in 2018 and amounted to 1,535.6 billion tenge. The expected volume by the end of this year is 1,573.9 billion tenge.

In January-April 2020, the amount of tax deductions from SMEs amounted to 34 billion tenge, which is 1.8% higher compared to the same period in 2019.

According to the regional department of entrepreneurship and industrial and innovative development, with the introduction of restrictive measures in accordance with the Decree of the President of the Republic of Kazakhstan “On the introduction of a state of emergency in the Republic of Kazakhstan”, familiarization and awareness-raising work is carried out with subjects small and medium-sized enterprises for all measures of support and tax incentives provided by the state in these conditions.

In support of small and medium-sized businesses in the Almaty region in 2020, more than 9 billion tenge was allocated from the republican budget within the framework of the Business Roadmap-2025 program, of which: 4.1 billion tenge to subsidize the interest rate; partial guarantee — 1.3 billion tenge; the provision of state grants for the implementation of new business ideas — from 2 to 5 million tenge in a general competition of 72 million tenge, for young entrepreneurs — 50 million tenge; development of engineering and communications infrastructure — 3.6 billion tenge, where 1.4 billion tenge is co-financing from the local budget.

In addition, along with the existing state programs to support business during a state of emergency, together with JSC Damu Fund, Zhetysu regional program for financing small and medium-sized enterprises is involved. Within the program, 500 million tenge was allocated from the local budget and 500 million tenge from the fund’s budget, totaling 1 billion tenge. Currently, work is underway with the fund to agree on the terms of the program.

 

Thanks to Employment Roadmap, unemployed youth and construction college graduates to find jobs

In the Almaty region, 109.2 billion tenge were allocated for the implementation of 977 projects under the Employment Roadmap program. To date, tenders have been announced for 960 projects, including contracts for 365 projects.

In order to implement the Employment Roadmap in a quality manner, a list of unemployed residents of the region has been compiled, which includes 13,334 people, including unemployed youth. Of these, 3,228 people are young people under the age of 29, including 1,744 people — unemployed youth living in areas near the city of Almaty. Also, 20 mobile recruitment centers were created and operate in the region, thanks to which 9,865 people were consulted, 165 were employed. Currently, 17,597 jobs have been created on 175 projects under the Employment Roadmap, 1,198 people have been employed through employment centers, including 350 — from among unemployed youth living in a suburban area of ​​Almaty.

In addition, 205 graduates from 5 regional construction colleges will be involved in the construction and reconstruction of projects under the Employment Roadmap. Among them are masons, foremen of general construction works, carpenters, carpenters-builders, plasterers, installers of frame constructions, painters, construction technicians, hydraulic engineers.

In general, within the framework of the Employment Roadmap, it is planned to create 22.8 thousand jobs in the region, including 1.8 thousand permanent and 10.5 thousand through employment centers.

 

Enbek program created over 11 thousand jobs

In addition, in the fight against unemployment, mechanisms such as job creation and the application of active measures to promote employment within the framework of the state program Enbek for the development of productive employment and mass entrepreneurship for 2017-2021 have been successfully applied.

This year, 18.2 billion tenge are provided for the implementation of the Enbek Program to cover more than 40,443 people with active employment measures. To date, the measures covered 11,221 people.

As part of first direction, 4,040 people are planned to be trained.

Vocational training will begin in September, and the contingent is being formed. 272 people were sent to short-term vocational training.

In the second direction, 5.7 billion tenge is envisaged with coverage of 5,639 people. Including microloans, it is planned to issue 1,094 participants.

Since the beginning of the year, 35 rural residents received microcredits in the amount of 139.4 million tenge. In the cities, at the expense of 2019, 9 people received microcredits in the amount of 97.5 million tenge.

According to the Bastau Business project, it is planned to send 2,900 people.

It is planned to issue 1,645 grants up to 200 MCI for the implementation of new business ideas. To date, 150 grants have been issued.

In the third direction, 30,764 people will be covered.

In 2019, 35.7 thousand people were employed for permanent work.

As of May 1, 2020, 10.8 thousand people were covered by employment measures. In total, 10.3 thousand people were employed, of which 3.3 thousand people were employed.

So, on May 1, 2020, with an annual plan of 46,116, 11,806 jobs were created.

Active employment promotion measures are being implemented as part of the Comprehensive Employment Promotion Plan. Given the application of these measures, according to statistics for the I quarter of 2020, the unemployment rate in the region amounted to 4.7%.

 

One of the priority areas of the region is tourism

The number of tourists over the past 5 years in the region has doubled and amounted to 2 million 227 thousand people.

According to the results of 2019, according to monitoring data, 781 tourist reception facilities are operating in the region, they served – 2,272.3 thousand people. The volume of paid tourist and recreational services amounted to 15.9 billion tenge. Expenses of domestic tourists in the Almaty region for 2019 amounted to 31.2 billion tenge.

With regard to tourist facilities, over the past 5 years in the region 196 new tourism facilities for a total of 40.1 billion tenge were commissioned, including in 2019, 48 new placements for a total of 19.3 billion tenge private appeared on the map of the region investment.

This year, the region also plans to complete the construction of 27 tourism facilities for 4.2 billion tenge.

For the I quarter of 2020, three facilities were commissioned (Alakol district) for 110 million tenge.

On the territory of the mountain cluster, it is planned to implement large investment projects to expand the existing mountain resorts Oy-Karagay-Aport (stage 1) and Ak Bulak in the Talgar region and new ones Turgen (stage 1) in the Enbekshikazakh region , as well as the Park Canyon entertainment complex in the Rayymbek district for a total of 542.7 billion tenge of private investment.

At the same time, it is planned to implement a project of a cottage town with a summer amphitheater Alakol Apartments on the shore of Lake Alakol in the amount of 4 billion tenge.

In addition, work is ongoing to improve the quality of services provided. So, in the framework of the state program for the development of the tourism industry of the Republic of Kazakhstan for 2019-2025, 18 courses and training seminars were organized to improve the quality of services provided for tour guides, representatives of locations, museums, state national natural parks, travel agencies, as well as advanced training for employees of airports, railway stations, border guards and police. In 2019, more than 700 tourism workers in the region, including digital literacy, were enrolled in advanced training courses.

In addition, over the past three years, large-scale work has been carried out to upload 8,000 tourism sites to the global online platforms TripAdvisor, Google and Yandex, posted more than 300 new articles about tourist places in the region on the pages of the Internet encyclopedia Wikipedia, and the video “Vacation in KZ. Journey to Zhetysu” was posted on the popular video hosting YouTube.

 

More than 3 thousand people to be provided with housing in 2020

The housing issue is also being resolved. The main task of the region’s leadership is to provide the waiting list with high-quality and affordable housing. In 2019, under the plan of the Ministry of Industry and Infrastructure Development of 763.2 thousand m², 894.1 thousand m² of housing were commissioned in the region. In addition, 685 low-income large families were provided with housing at the expense of budgetary funds, which is 13 apartments more than the plan.

Currently, 50.6 thousand citizens are in the queue for housing in local executive bodies. Housing is provided through the construction of rental, credit housing and stimulation of the construction of private developers by conducting engineering and communication networks to the integrated development areas for the implementation of the 7-20-25 program.

To achieve the objectives in the current year, it is planned to use 40.8 billion tenge in the region.

In 2020, within the framework of the Nurly Zher program, it is planned to introduce 938.8 thousand m² of housing. In January-April 2020, 266.9 thousand m² of housing or 120% were commissioned.

This year, 246.2 thousand m² of housing or 3 258 apartments (714 residential buildings) are under construction at the expense of budget funds, of which 519 houses for 1,764 apartments with a total area of ​​136 thousand m² are planned to be commissioned by the end of the year.

In general, this year, within the framework of state programs, it is planned to provide housing for 3,030 waiting lists, including the following:

  • Nurly Zher — 1,234 apartments;
  • Baqytty Otbasy — 600 apartments;
  • 7-20-25 — 330 apartments;
  • 5-10-20 — 866 apartments.

At the same time, in the framework of the new announced program 5-10-20, out of 180 billion tenge, 6.4 billion tenge was allocated to the Almaty region.

In general, to provide housing for the waiting list of the region until 2025, it is necessary to build about 250 thousand m2 of housing annually. For this purpose, funds for the design are allocated from the local budget in the region. In addition, to ensure the waiting list of MIO, the engineering and communications infrastructure is built annually to an average of 6 thousand land plots. About 10 billion tenge is allocated annually from the budget for these purposes.

 

Proportion of roads in good and satisfactory condition to reach 99% by 2025

The infrastructure is also developing successfully in the region. This year, to improve the quality of roads of local importance, 55.7 billion tenge is provided for the implementation of 556 projects, of which 40 projects worth 15.3 billion tenge under the Nurly Zhol project, 19 three-point projects at Aul – El Besigi, 5 billion tenge, Employment Roadmap — 337 projects for 19.7 billion tenge, and 24.2 billion tenge are provided for the implementation of territories for the implementation of 160 projects at the expense of the local budget.

In 2020, as part of Nurly Zhol state program, it is planned to reconstruct and repair 326.3 km of local roads.

Until 2025, within the framework of the Nurly Zhol program, it is planned to carry out construction (reconstruction) of 188.7 km of roads, overhaul of 120.2 km and 16 bridges, as well as average repair of 1,480 km of regional roads for a total of about 148,511.9 million tenge, including the following major projects:

  • construction of six radial roads to BAKAD with a length of 36.4 km;
  • completion of the reconstruction of the road to Lake Balkhash with a length of 75 km.

In addition, according to the Nurly Zhol program, by 2025 the goal was set to bring the share of regional roads in good and satisfactory condition to 99%.

 

In 2020, ten schools to be built in the region

There are over a thousand preschool organizations and 775 comprehensive schools in the region. In the 2019-2020 academic year, hot meals were organized in 574 schools of the region, and buffet meals in 85. In total, 365,387 students were enrolled in hot meals, of which 41,152 students from socially vulnerable and low-income families 100% were enrolled in free vitaminized hot meals.

In the 2019-2020 academic year in the region in 69 settlements where there are no schools, a daily transport of students was organized.

There are 78 colleges in the region, of which 44 are public and 34 are private.

In 2020, construction and reconstruction of 32 educational facilities is ongoing. Including 24 comprehensive schools, 1 art school, 4 dormitories for college students and 3 kindergartens.

To eliminate three-shift training, 17 schools are under construction, of which 10 schools with 10,500 student places will be completed this year. The remaining 7 schools are transitioning to 2021. Design estimates for the construction of 16 schools are also being developed.

In addition, 55 educational facilities are undergoing major repairs. Under the Aul – El Besigi program, 10 facilities are undergoing major repairs, 37 education facilities under the Employment Roadmap program, as well as 354 ongoing repairs.

In order to carry out the third initiative, designated by Elbasy in the Five Social Initiatives, the construction of nine dormitories with 1,718 beds for 1 university and 8 colleges is planned in the region. This year 4 dormitories with 818 beds will be built. In general, in the years 2021-2022 it is planned to build 5 dormitories with 900 beds for regional colleges. Development of design estimates is ongoing.

As for the digitalization of the education sector of the Almaty region, this work is being carried out in several areas.

Providing schools with high-speed Internet is 69.3%. All 760 schools in the region are connected to the Internet and are 100% equipped with computer equipment. Wireless Internet access based on Wi-Fi technology has 483 schools. By the end of 2020, 639 schools or 84% will have Internet access based on Wi-Fi technology.

 

In 2020, it is planned to build 15 health facilities

A lot of work is being done in the field of healthcare development. In general, there are 804 healthcare institutions in the region, including state — 641, private — 163.

4,780 doctors and 14,970 nurses work in the regional medical institutions. Provision of doctors per 10 thousand people is 24.2, and average medical workers — 74.6.

In 2020, it is planned to build 15 health facilities and overhaul 8 facilities.

Under a PPP project, it is planned to open a positron emission tomography center in the Ili district, and to build a clinic for 250 visits per shift in the village of Uzynagash of Zhambyl district, the central laboratory in Taldykorgan and the acquisition of 2 angiographs for the regional hospital, and the cardiology center of Taldykorgan.

In addition, to attract medical specialists, it is planned to purchase 126 apartments for doctors in all areas and cities of Taldykorgan, Tekeli.

It is important to note that, as of May 1, 2020, in comparison with the corresponding period of the last year, the birth rate increased by 4.3%, the overall mortality rate decreased by 2.5%, the mortality rate from tuberculosis by 14.6% times infant mortality — by 2.5%.

As for the digitalization of the healthcare sector, work continues on providing medical organizations with computer equipment and access to the Internet.

53 medical institutions are connected to paperless medical records, 224 forms have been converted to electronic format, an electronic health passport has been created for 1,997,750 people, which is 98.1% of the population.

Access to the Internet is provided at 100% at the level of regional, district and city hospitals, below the district level — 84%.

Currently, work is underway to provide medical centers in remote villages with satellite communications, which will ensure 100% access to the Internet of medical organizations below the district level.

The availability of computer equipment is 100%.

Health facilities in the region are 100% ready to implement the Compulsory Social Health Insurance system.


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