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Bakytzhan Sagintayev on joint work with Atameken NCE: a cohesive team has been established

by June 21, 2018 Key Issues

During the official opening ceremony of the Congress, Prime Minister Bakytzhan Sagintayev read out the address of the Head of State Nursultan Nazarbayev to the delegates.

“Dear participants of the Fifth Congress of Atameken NCE, ladies and gentlemen! I sincerely congratulate everyone on the opening of the Fifth Congress of the Atameken National Chamber of Entrepreneurs of the Republic of Kazakhstan.

This year marks the fifth anniversary of the creation of the Atameken National Chamber of Entrepreneurs. For this time the Chamber has established itself as an independent institution for the protection of the rights of the business community. The National Chamber worked as a liaison between state bodies and entrepreneurs for beneficial cooperation. I believe that the National Chamber will make a great contribution to the sustainable development of our country.

Dear ladies and gentlemen! Entrepreneurship is a real locomotive and driving force of the economy. The development of business activity is extremely important for Kazakhstan. Together we will achieve significant successes in this direction.

In the past 10 years Kazakhstan has risen from 64th to 36th place in the World Bank’s Doing Business ranking. The country ensures macroeconomic stability and improves business climate. The GDP growth is 4%, which is higher than the world average.

Structural and national reforms are being implemented, systemic work is carried out to improve the investment climate, new Tax and Customs Codes have come into effect, and a package of legislative amendments has been adopted on business regulation. It takes into account the proposals and recommendations of the business community as much as possible. This work will be continued and expanded. Domestic businessmen, Atameken NCE should actively participate in this important process.

Our strategic goal is to make Kazakhstan join the 30 developed countries. This implies an increase in the share of SMEs in the country’s GDP to 50%. In addition, in the conditions of the Fourth Industrial Revolution, we took a course for accelerated modernization of the economy, the introduction of new technologies and innovations. In the context of social initiatives, microcredit is increasing, such important undertakings as the Bastau project are being implemented. This year alone, the basics of entrepreneurship are planned to train 30,000 rural residents covering 160 rural areas and 40 small towns. To implement all the goals and tasks set, the joint and consistent efforts of the Government and the Atameken Chamber are required.

Today the National Chamber has established itself as a basis for the consolidation of the Kazakh business community. The organization is a mechanism for promoting strategic reforms of the country’s development. This is the only structure in the CIS that unites all domestic entrepreneurs, has legislatively fixed wide functions and powers.

I am confident that this congress will be a landmark event for summing up the results of the Chamber’s five-year work. It will help us define new perspective directions and spheres of business promotion in Kazakhstan. I wish all fruitful work and proper successes for the welfare and prosperity of our country of the Republic of Kazakhstan,” reads the statement of the Head of State.

Chairman of the Board A. Myrzakhmetov delivered a report on the results of the activities of the NCE and the actualization of the Development Strategy of the Chamber.

“Since October 2013, more than 23 thousand appeals have been received, 40% of them have been protected, thus more than 111 billion tenge of preserved property monetary and other rights of entrepreneurs were satisfied,” he said.

In addition, reporting on strategic priorities for 2016-2018, Chairman of the Board of Atameken NCE A. Myrzakhmetov stressed that the protection of rights and legitimate interests of business entities is one of the priority directions for the development of the strategic plan. Priorities also include improving the business environment, ensuring the availability of finance, infrastructure and markets, the development of human capital and business support services

Chairman of the Business Women Council of Mangistau Region Saule Salikhova and Chairman of the Board of Eurasian Resources Group Alexander Mashkevich also spoke in the course of the discussion of the NCE Board’s report.

Following the vote, the report of the Board of the NCE was adopted unanimously.

Bakytzhan Sagintayev noted the importance of the Congress in his speech, taking into account the completion of the first five years of work. September 9, 2013, the Government assumed responsibility and jointly with the then Atameken Union created the National Chamber.

“This is a very important congress, because we are considering the results of the five-year work. … Very soon we are going to celebrate the twentieth anniversary of Astana. Who will believe what our capital was like 20 years ago? The same can be said about our Chamber. What it was five years ago and what it is now. Five years ago we were at the beginning of this process, we were witnesses ourselves, we saw why this was done, for what,” the Prime Minister said.

Sagintayev pointed out that the Government carried out a lot of work to improve the legislative regulation of business.

As is known, for five years the Government together with the NCE has developed six packages of amendments aimed at the improvement of business and reduction of administrative barriers. As a result, according to the World Bank’s Doing Business-2018 ranking, Kazakhstan took 36th place and for five years rose in this rating by 40 points. In 2015 the Entrepreneurial Code, prepared jointly with Atameken, was adopted. It was the first time that brought together all legal norms regulating business and became a kind of “Constitution of Entrepreneurs.” Literally six months ago, with the direct participation of the Chamber, the basic Codes for business � Tax and Customs, as well as the Code “On Subsoil and Subsoil Use” were adopted. Only in 2017 there were about 1000 amendments to 14 codes and 109 laws.

Serious results were achieved on deregulation and liberalization of the business environment, which created conditions for large-scale growth of entrepreneurship. So, for five years 74% of permits have been reduced (from 1196 in 2012 to 316 in 2018). The effect of this optimization is 1.5 billion tenge annually (annual reduction of financial losses for business). The article “False Entrepreneurship” is excluded from the Criminal Code. The amount of administrative fines was reduced by an average of 30% (for 157 compositions), the institute of prevention was expanded (52 articles instead of 14).

The Prime Minister also noted the active work of the Atameken NCE on digitalization. The Government is interested in the inflow of domestic investments into such areas as technological renewal of industrial enterprises and the introduction of elements of Industry 4.0; transport and logistics infrastructure; modern technology in housing and communal services and construction; the use of “smart technologies” to increase labor productivity and exports of processed agricultural products; the creation of “smart cities” to improve the quality of life; the development of human capital as the basis of modernization.

The issue of the competitiveness of domestic business and the expansion of export production was also touched upon.

“Our products must be competitive, in demand. We should not forget that our domestic market will require better products of local producers,” the Prime Minister stressed.

In addition, special attention was paid to the measures taken to develop small and medium businesses.

“Bastau-Business program initiated by the NCE prompted people to be directed to microbusiness. The need is really big. We must develop mass entrepreneurship in the country,” Sagintayev said.

As is known, today the key support tools for SMEs are the Single Program for Business Support and Development Business Road Map 2020, the Program for the Development of Productive Employment and Mass Entrepreneurship.

Measures of state support cover all regions. Only one Business Road Map – 2020 program for the entire period of its implementation, as of June 1, 2018, supported more than 350 thousand SMEs. As a result, the program participants paid taxes to the treasury in the amount of 847.7 billion tenge. Manufactured products at 3.5 trillion tenge. They created 348.6 thousand jobs.

On behalf of the Head of State, the Program for the Development of Productive Employment and Mass Entrepreneurship has been developed and is being implemented, taking into account business proposals voiced by representatives of the National Chamber of Entrepreneurs. The volume of microcredit has been expanded, there is the possibility of guaranteeing by the state with insufficient collateral for potential entrepreneurs. In total, within the framework of the Program for the Development of Productive Employment and Mass Entrepreneurship, about half a million citizens are supported, of which 315,000 are employed for permanent jobs.

In 2017, 7,200 microcredits were issued for 32 billion tenge. This year, under the Five Social Initiatives of the Head of State, the expenditures for the microcredit budget will be increased to 62 billion tenge. Microcredits will receive 14 thousand people.

In his speech, the Prime Minister highlighted the completion of the transition period envisaged by the law on the NCE. Now the Government will withdraw from the membership of the National Chamber. The head of the Cabinet stressed that close and constructive work is important at a new stage, and for this there is a united team today, there is a vision of what to do in order for business to develop.

“Now Atameken is starting a new stage of its work. We wish you a good journey, Atameken said Bakytzhan Sagintayev.

Within the framework of the Congress, Prime Minister Bakytzhan Sagintayev and Chairman of the Presidium of the Atameken Timur Kulibayev signed an Agreement on Cooperation between the Government and the National Chamber of Entrepreneurs, which defines a new mechanism for cooperation and joint activity.

Source: The Prime Minister of Kazakhstan