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Thursday, August 13th, 2020

KZT 500 bn to be allocated for Kazakhstan’s export potential’s increase

by January 28, 2019 Market

According to the information of the Ministry of Industry and Infrastructural Development, for 11 months of 2018, total exports amounted to 54.7 billion dollars and grew by 26.4% compared to the same period of 2017, including non-primary product exports increased by 3% (14.3 billion dollars). This was told by Vice-Minister Arystan Kabikenov during a briefing for the media. Read more about Kazakhstan’s export potential and prospects for 2019 in the review material of the Information Agency.

It should be noted that the share of exports in the manufacturing industry increased by 9% over the past 5 years (from 23% in 2013 to 32% in 2017, following the results of 11 months of 2018, the share was 26.1%).

For reference:

Main primary goods: crude oil (82.4%), petroleum gases (5.1%), copper ores and concentrates (2.6%), wheat and meslin (1.8%), iron ores and concentrates (0, 7%), raw sulfur (0.6%), hard coal (0.5%), zinc ores and concentrates (0.5%), chrome ores and concentrates (0.4%).

Main non-primary goods: cathodes from copper (14.3%), ferrochrome (11.4%), treated uranium (7.9%), petroleum products (6.5%), unalloyed aluminum (3.6%), wheat flour (2.7%), silver (2.6%), raw zinc (1.6%), alumina (2.1%), refined copper (1.1%).

According to A. Kabikenov, various financial and non-financial measures of the state support are provided in the framework of the export promotion. According to the results of 2018, within the framework of the provision of the financial support measures through KazakhExport, 50 exporters were supported, of which 27 companies used this support for the first time. The amount of supported export contracts amounted to 419.7 billion tenge.

In 2018, within the framework of the service support for exporters, more than 50 events were held abroad. The participation of Kazakh exporters at international exhibitions and trade missions contributed to the conclusion of more than 100 export contracts worth about 0.5 billion dollars.

Over the past year, in the framework of the provision of the non-financial support measures, 368 export-oriented enterprises were certified by the Atameken National Chamber of Entrepreneurs.

Today, Kazakhstan exports about 800 goods to 119 countries. At the same time, the export basket of Kazakhstan annually replenishes on average by 5-8 product groups. In particular, new groups of export goods in 2017 included automobiles, solar panels, gas boilers, cartridges, rails, and POS terminals.

In 2018, we began to export honey to the UAE market in industrial-scale volumes; for the first time, Kazakhstan’s ice cream was delivered to the markets of China. Within the trade and economic mission organized in China with the support of our Ministry, for the first time, supplies of Kazakhstani meat to the Chinese markets were made, with a long-term contract concluded for 5 years, A. Kabikenov said.

Along with this, last year the first Kazakhstani trading house was opened in Xi’an, where Kazakhstani products will be presented this year, which will also be promoted in the electronic trading networks of the PRC.

A. Kabikenov noted the potential for increasing the export of Kazakhstani products to nearby countries, such as the Russian Federation, Azerbaijan, China, Uzbekistan, Ukraine and Iran. The main potential goods are products of the machine-building industry, food, dairy, as well as building materials.

Thus, in the framework of the President’s Address, in order to prevent the loss of traditional export markets, as well as to expand the geography of supplies and product lines for the next 3 years, 500 billion tenge was allocated.

Funds allocated within the framework of the President’s Address will be used to:

1. finance export-oriented projects;

2. credit importers and exporters through the instruments of Development Bank of Kazakhstan JSC;

3. increase the authorized capital of KazakhExport and introduce a new type of a state guarantee;

4. introduce a mechanism for reimbursement of a part of transportation expenses to domestic exporters;

5. strengthen traditional types and introduce new service support tools.

The expected growth in export earnings until 2021 is 725 billion tenge.

In order to introduce new measures of service support in 2019, it is planned to open trade missions in the countries of Central Asia, China, Turkey, and the United Arab Emirates. The purpose of these representative offices is the manually tracking of Kazakhstan exporters abroad.

At the same time, in order to facilitate access to foreign markets, it is planned to translate foreign technical regulations and requirements into the official and Russian languages. The web portal was updated to simplify obtaining the state support to exporters, where every entrepreneur will be able to receive services related to the promotion of exports, as well as submit an application for participation in trade and economic missions. In addition, the portal is planned to integrate with leading marketplaces, dispatchers of logistics services, electronic customs declaration system.

To simplify access to the markets of China, the United Arab Emirates, Iran, it is planned to invite inspection commissions from these countries to visit the enterprises of Kazakhstan exporters. In addition, the Ministry plans to invite foreign buyers (Metro (China, Russia, Middle East), Migros (Turkey), Auchan (EU, Russia), Wumart (China), Vanguard (China), Yonghui (China) to meet with domestic commodity producers.

There are concrete plans. In Kazakhstan, 8-10 products are growing annually in foreign markets. If these are not new products, then we are on an industrial scale. We are planning to expand the export geography for this year. In general, the dynamics are positive. Work is underway. There are high expectations for achieving the objectives and increasing exports by 1.5 times by 2022, A. Kabikenov concluded.

Source: Kazakhtan 2050