President Nazarbayev holds a session of the National Investors’ Council

April 12. Kazpravda


President Nazarbayev holds a session of the National Investors’ Council11 April, 2014 Nursultan Nazarbayev held a meeting of the National Investors’ Council, attended by leaders of the state bodies, national companies, representatives of the National Chamber of Entrepreneurs (NCE) and businessmen.

The agenda was the development of business and investments in the country. The President said we do not mean just big enterprises alone, but a qualitative and quantitative development of the business that’s able to give employment to both few and scores of people, a flexible and mobile production capable, if need be, to switch from one activity to another and to perform well under competition.

Enterprise, he said is the driving force of economy, while small and average business- the foundation of a sound middle class. This sector shows good dynamics: as of last year, the number of people in business went 8% up, i.e. 2,6 mn people, and the output of small and average businesses made the sum of KZT 9trn, i.e.3,3% growth on-year.

Unfortunately, there are negative tendencies too: the share of small and average business in the economy in the recent years stopped at 17% of GDP, the 70% of receipts to the national budget come from merely four hundred taxpayers, i.e.0, 2% of all the home businessmen.

Growth rates of internal private investments in the main capital are behind the GDP growth rates. In pre-crisis time their share in GDP was 8, 4%, whereas in 2013- only 13%. The net inflow of direct foreign investments in 2013 made $ 9,7bn, which is 4 bn below the 2012 index, the President said citing figures.

The target, he went on, is building conditions for business on the OECD level, which necessitates a set of measures, specifically improvement of the state regulation.

There is a moratorium on business inspections, which is not first in the country, but as soon as it ends, there’s a barrage of complaints. The Government should better perform the President decrees, N. Nazarbayev pointed.

The government is requested to work together with local authorities to adopt rules of interaction with the National Chamber of entrepreneurs, which, it was stressed, should actively protect the businessmen’s rights and interests. Institute of Business Ombudsman is under formation for this end as well.

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President Nazarbayev ordered to draft the assets amnesty

April 12. Kazpravda


At the investors’ Council meeting, President Nursultan Nazarbayev reminded that the National Fund had allocated KZT 1 trillion for the economic development to improve the businessmen’s financial standing, refinance part of their loans and fund the new projects in the manufacturing sector.

In this year 500 billion tenge is to be allocated for the economy, already in the next week, – he said. A commission is being formed to monitor these funds’ expenditure.

A package of incentives is needed for the development of affordable Tenge market, i.e. de-dollarization of the financial sector, and the internal source of investment will be tapped – assets of Single pension fund. By June 1 the National Bank of Kazakhstan together with the government will develop the strategy of investing them, including through the placement of long-term deposits in banks.

The President also reminded of universal declaration of the population’s incomes to be launched January 1, 2017, followed by a general declaring of expenses.

– This measure will help withdraw a big part of our economy from the shadow and bring us to the level of economic transparency in developed nations. The shadow economy is the first enemy of sustainable development and best friend of corruption, he inferred.

Before June 1, the National Bank in team with the Government will draft the assets amnesty, he ordered. For development of a strong business Kazakhstan needs new export niches, given which economic integration is most important, he went on.

– Integration is our conscious choice , no one lives in a closed space nowadays. If the Russian market opens up to us on all positions, the production in our country will increase 8-fold in due course.

In 2009, during the crisis, the state had to increase its part in the economy, but now, the President believes it’s time to withdraw from it. – Therefore, we announced the second wave of privatization, and the National Chamber of entrepreneurs should be actively involved in it to impart transparency to the process and stimulate it, – he said.

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People make economy, President says

April 12. Kazpravda


The upcoming EXPO -2017 in Astana opens up ample opportunities to many Kazakhstani businessmen. On preliminary estimates, voiced by the President, the first phase of its facilities’ construction alone will take million meters of wiring, half a million tons of cement, a huge amount of fittings and bricks.

– We could produce all that ourselves, – said Nazarbayev, requesting the national company “Astana EXPO -2017” and the Chamber of entrepreneurs to develop a special program for business participation in the preparation for the exhibition .

Second phase of the industrialization program is under finalization, and it is necessary to develop our traditional industries: oil and gas, mining and metallurgy and agriculture. In them is our comparative economic advantage, and the task is to make these industries competitive and high performing. No less important is development of the manufacturing industry, primarily refining, petrochemicals, machinery, agricultural processing and food industry. The target is to diversify our economy, basing on traditional industries, – the President said, naming development of tourism and service sector and laying the grounds for the knowledge economy the key directions. Skilled technicians are needed for all that. But at present the ratio of university and vocational training students is 50/50 , whereas in developed economies, it is as a rule – 40/60 . Unless we train sufficient number of technicians, the industrialization will not succeed, he opined.

– According to the World Bank’s study of the 192 world economies, only 16 % of economic growth is due to physical capital , 20% – to natural resources, and 64% depends on human resources , – Nazarbayev quoted .

In this regard, he stressed the need to transform the current system of vocational and technical education into a dual education system, to develop a new infrastructure and network of advanced colleges in Kazakhstan, which is the task of the Education and Science Ministry, the companies and the Government. National Chamber of entrepreneurs should take a key part in it, starting with an independent assessment of the quality of graduates’ competence, – he said.

It is important to revive the practice of sharing experience and mentoring to novices in business, to motivate their ambitions by success stories.

The President also set the task to join the top thirty countries in the Doing Business rating in 2016, naming two problem areas – construction and international trade that want drastic reforming.

The Government and the NCE are instructed to work out a single program on the above named areas.

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Promising auto-industry of the country

April 12. Kazpravda


At the session of National Investors’ Council, the President said the automobile industry is among priorities of the second phase of the state industrial development program. President of Kazakhstan Auto Association, CEO of Allur Auto Sergey Lavrentiev reported on the real progress in this sector of economy. Due to the state support, in 2008 – 2013, the volume of auto-industry production grew up by 11.5 times which is 156 billion tenge.

– Last year over 38,000 cars were assembled in East Kazakhstan and Kostanay regions. Turnover of all companies in 2013 exceeded $ 1 billion. The share of the sold autos is 22% of all Kazakhstani market. It is expected that in near future 300 000 cars (worth U.S. $ 6 billion) will be sold in the country with 40 % of them to be assembled by Kazakhstani enterprises. The company is planning to increase production up to 190,000 cars per year, 90 000 of which will be exported to the Customs Union.

As part of the project Asia Auto, a full cycle car assembling plant the capacity of 120 thousand autos per year will be constructed in Ust-Kamenogorsk. The total investment is about $ 500 million. Besides, this year a joint project Saryarka AUTOPROM will be launched to produce Hyundai autos. It proves that we are ready to produce cars, S. Lavrentiev underlined.

Among other plans of the auto-industry is the localization of production to create favorable conditions for small and medium-sized businesses.

– At present 15 000 specialists are involved in the auto-industry. By the end of the second five-year plan about 30 000 professionals will be engaged in production of auto-components, insurance services and sales. Domestic car market will pay KZT 171 billion tenge of the planned taxes to the budget. Already this figure is 50 billion tenge, – he went on. By 2020, we expect to export up to 100 000 cars assembled in Kazakhstan. Asia Auto is planning to export over 50% of the output to Siberia, Far Eastern regions of Russia, Asia and the Caucasus.

S. Lavrentev also broached vehicle utilization and air pollution. As it turned out, 2 mln out of 3.5 mln cars in our country are 20 years old. In this connection N.Nazarbayev advised the motorists to by the cars of Kazakhstan make to support the home auto industry and to improve the ecology.