ASTANA – Kazakhstan will support 30,000 small and medium-sized enterprises (SMEs) projects in 2025, with a total financial allocation of 1.7 trillion tenge (US$3.4 billion), said Deputy Prime Minister and Minister of National Economy Serik Zhumangarin during a government meeting on March 4.
Prime Minister instructs to strengthen investor support and to involve banks in economic development. Photo credit: primeminister.kz
New guarantee funds
The government will establish two new guarantee funds to bolster business support. One fund will focus on SMEs, increasing loan guarantees and interest rate subsidies.
The Prime Minister’s press service also reported that a new guarantee fund will be created to support large businesses. This fund will address the challenge of inadequate collateral for large, strategically important projects and help increase their number.
To ensure the stable development of the manufacturing sector, Kazakhstan will introduce 190 projects worth 1.5 trillion tenge (US$3 billion) in 2025, as reported by Minister of Industry and Construction, Yersaiyn Nagaspayev. The commencement of 417 projects, worth over 15.3 trillion tenge (US$30.6 billion), has also begun. These projects will be funded through private investment, second-tier banks, and development institutions. So far, over 1.1 trillion tenge (US$2.2 billion) in financing for manufacturing industry projects is already under discussion.
Energy sector targets growth with increased production plans
Energy Minister Almassadam Satkaliyev outlined production targets for 2025 in the energy sector. The oil and gas condensate production plan is 96.2 million tons, reflecting a 9.7% year-on-year increase. The refining plan for 2025 is 17.6 million tons, with 14.6 million tons of oil products expected to be produced. Gas production is projected at 62.8 billion cubic meters, an increase of 6.4% compared to the previous year. Electricity generation is also forecast to reach 117.1 billion kilowatt-hour (kWh), including 7.2 billion kWh from renewable energy sources.
Inflation expected to reach 10% by 2025
Deputy Minister of National Economy Arman Kassenov predicted the country’s inflation rate would hit 10% by the end of 2025. He attributed this mainly to global inflationary trends and the country’s high lending rates, which have been growing at an annual rate of 30% over the past three years. This rapid lending increase has outpaced Kazakhstan’s nominal GDP growth, creating additional economic demand.
Kazakh Prime Minister Olzhas Bektenov emphasized that financing the real sector is crucial for sustainable economic growth. He stressed that the country’s growth will rely on significant investments in key sectors, including production, infrastructure, agriculture, transport, and energy. However, challenges such as inefficient government agencies, a lack of long-term loans for businesses, and competition between state and private banks need to be addressed to accelerate this growth.
To tackle these challenges, the government has outlined several key steps this year, including expanding state guarantees, establishing a Guarantee Fund for small and medium-sized businesses, and recapitalizing Baiterek Holding. These measures are expected to provide the conditions for timely financing of real projects, helping fuel Kazakhstan’s economic development.
