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Zhenis Kassymbek: 120 industrial projects will be implemented this year in Kazakhstan

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by February 21, 2019 Business

In spite of fall in world prices for base metals, sanctions against major trading partners (Iran, Russia) and other external factors in 2018, the country’s production sector increased by 4.1%, including mining by 4.6%, processing by 4%. In general, following the results of 2018 the Ministry of Industry and Infrastructure Development achieved solid performance targets on the main activities. Read more about the results of 2018 and plans for 2019 in the review material of the Strategy2050.kz Information Agency.

During a board meeting, Industry and Infrastructure Development Minister of Kazakhstan Zhenis Kassymbek reported on the implementation of the long-term state industrialization programs, the Nurly Zhol and Nurly Zher state programs, as well as issues on promoting of non-oil exports, technical regulation, geology and subsoil use, transport and logistics, civil aviation, construction and utilities, innovation and digitalization.

Industry

The main growth drivers in the manufacturing sector of steel were: metallurgy + 2.2% (including non-ferrous metallurgy + 5.4%), engineering + 14.1% (including in the car manufacturing + 40.4%), chemical industry + 8.1%, light industry + 4.4%. Exports of manufactured goods in January-November 2018 amounted to 14.3 billion dollars, having increased by 11.4% over the same period in 2015. Volume of investment in fixed assets of the manufacturing sector for 12 months of 2018 amounted to 1,247.2 billion tenge, having increased by 25.1% over the same period of 2015, the Minister said.

According to him, more than 100 projects worth 1.3 trillion were implemented under the industrialization program in 2018. More than 13 thousand permanent workplaces were created.

In 2019, it is planned to realize about 120 projects worth 1.1 trillion tenge, including a ferrosilicium plant in Karaganda region with investments attracted up to 30.6 billion tenge, a ceramic tiles and ceramic porcelain tiles plant in Aktobe region worth 6.9 billion tenge. About 20,000 new workplaces will be created then, Kassymbek said.

Kazakhstan-China projects are also being implemented in the country. To date, the List includes 55 projects totaling 27.4 billion dollars, of which the Ministry is working on 32 projects totaling 22.8 billion dollars.

Special conditions and a mechanism for affordable lending to domestic enterprises in the amount of 600 billion tenge were determined in order to implement the instructions of the Head of State concerning the development of the economy of simple things. Of which 400 billion tenge will be directed to the manufacturing industry.

In the words of the Minister, the measures taken will allow launching and increasing the production of about 250 consumer goods that are used daily by Kazakh citizens. They are products of the light industry, furniture industry, as well as building materials.

The tasks set by the Head of State to develop the economy of simple things, to promote the export of processed products, and to saturate the domestic market with domestic goods are taken into account in the Concept of the third industrialization program adopted by the Government in December 2018. On the basis of this Concept, the State Industrialization Program until 2025 will be developed in the current year, he reported.

Under the Digital Kazakhstan state program, it is planned to introduce innovative and digital technologies in more than 100 enterprises of the mining and smelting complex and the processing industry.

Transport and logistic

In the transport industry, last year the volume of transportation services increased by 4.6% compared with 2017. The total volume of goods transit by all means of transport via the country grew by 6% and amounted to 19.2 million tons.

The volume of container traffic in transit via Kazakhstan is growing steadily. At the end of 2018, the volume of container traffic amounted to 537.4 thousand TEU, which was 55% more than the same period in 2017. Including in the direction of China – Europe – China, this figure increased by 54.6% and amounted to 310.8 thousand TEU (including along the China-Europe direction, an increase of 40% -171.2 thousand containers and Europe- China by 80% -139.6 thousand containers. In 2019, it is planned to double the volume of container traffic to 1.2 million TEU. Thus, today, we can state the formation of Kazakhstan as a transit hub in the center of Eurasia, Kassymbek said.

First Vice-Minister Roman Sklyar reported on the road construction in Kazakhstan in 2019. According to him, the coverage by reconstruction of the roads will amount to 4.4 thousand km of roads of the republican significance.

At year-end, it is planned to open a 654 km road traffic. The repair will cover 1.7 thousand km of roads of the republican significance, including major repair – 518 km, dock overhaul – 1,190 km of roads. The coverage of the road repair work of the local network will amount to 4 thousand km. If the trend of last year is observed, it is planned to bring the local roads to a good and satisfactory condition by up to 85% by 2025, which is about 60 thousand km, the First Vice-Minister noted.

There is a steady development in the field of international air traffic. If in 2013 flights were carried out along 73 routes, in 2018 their number increased to 96.

Only in 2018, Kazakhstan and foreign airlines opened 14 new air links. At present, 23 international airlines operate regular international passenger flights to Kazakhstan, Sklyar said.

Construction

In the construction industry, according to the results of 2018, there is a positive growth trend, which amounted to 4.1% compared to 2017. The volume of investment in residential construction increased by 8.1% (1.2 trillion tenge). Record 12.5 million sq. meters were commissioned. This is higher than the level of 2017 by 12.1%. More than 113 thousand families have improved their housing conditions.

In 2019, we plan to build 13 million square meters of new housing. Due to this, about 118 thousand families will be provided with new housing, of which more than 22 thousand apartments (1.2 million square meters) will be introduced at the expense of the state funds, Vice-Minister Kairbek Uskenbayev told about housing plans.

According to him, the implemented measures of support in the framework of housing and mortgage programs stimulated the development of the construction industry: this is new housing, creation of new jobs, growth in output by domestic producers of building materials and related industries (furniture, household appliances and equipment).

Following the meeting of the collegium, First Deputy Prime Minister of Kazakhstan, Askar Mamin, gave a number of specific instructions.

Both internal and external trading policies of Kazakhstan should become more competitive and proactive. We will compete for the markets that are already occupied, the growth due to free export space created thanks to dynamic development of our neighbors will be extremely limited in years to come, he said.

According to him, the steps in this direction have already made. The consolidated institute purposed to elaborate and implement the country’s export policy at micro- and macro-levels has been launched.

It is crucial to focus on expanding and deepening of the range of tools for promoting export policy of Kazakhstan abroad, Mamin noted.

Source: Kazakhtan 2050

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