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

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by January 31, 2020 Study

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 PrimeMinister kz

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: SamalB?l?m 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

Source: Prime Minister of the Republic of Kazakhstan

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