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Business Road Map 2020

"Business Road Map 2020" program (hereinafter - the Program) is one of the mechanisms to implement the State Program of Forced Industrial and Innovative Development of the Republic of Kazakhstan for 2010 - 2014.

The purpose of the Program is to ensure sustainable and balanced growth of regional business in non-raw material sectors of the economy as well as the preservation of existing and creation of new permanent jobs.

The priority sectors for potential participants of the program "Business Road Map - 2020" include:

  1. agro-industrial complex;
  2. technical services to the mining industry*;
  3. consumer industry and furniture manufacturing;
  4. manufacturing of construction materials and other kinds of non-metallic mineral production;
  5. metallurgy, metal working, engineering industry;
  6. other fields of industry (including production of finished goods, power supply, gas, steam and air conditioning supply; collection, treatment and distribution of water; sewerage system; collection, treatment and disposal of waste, recycling; recultivation and other services in waste disposal)
  7. transportation and warehousing;
  8. tourist industry;
  9. information and communication;
  10. professional, scientific and technical activity;
  11. education;
  12. health and social services;
  13. arts and entertainment;
  14. providing other kinds of services (repair of computers, personal and household goods).

The first direction is "Support new business-initiatives"

Support new business-initiatives is a set of measures providing preferential assistance to the entrepreneurs who implement or plan to implement new projects, as well as support to the projects aimed at modernizing and expanding production in the priority sectors of the economy. If an entrepreneur meets these definitions, he can count on the following types of assistance:

  • Subsidizing part the loan interest rate*;
  • Loan partial guarantee*;
  • Development of production (industrial) infrastructure;
  • Service support for doing business;
  • Training personnel, youth practical work and organization of social jobs.

The second direction is "Improvement of the entrepreneurship sector"

The second direction of the Program is aimed at improving the companies providing them with the following support:

subsidizing the debtor company with existing Bank loan interest rates (at the time of approval) and the new debts under one loan line occurring after the approval of the project;

consideration to delay Debtor's paying of taxes and other obligatory payments to the budget (except for individual income tax deducted at source) without any penalties, which will be provided in accordance with the Tax Code of the Republic of Kazakhstan;

other measures to improve the companies within Financial and economic improvement plan, including debts to domestic creditors on the bonds placed at Kazakhstan Stock Exchange.

The third direction is "Support to export-oriented industries":

Entrepreneurs can participate in the Program of subsidizing part of existing loan interest rate.

Subsidizing can be carried out only for the loans with interest rate not exceeding 14%, including 6% paid by the exporting Entrepreneur and the difference is compensated by the state.

The Bank does not charge any commissions, fees and/or other duties associated with the loan, excluding the commissions, fees and/or other duties:

  • associated with changing loan conditions initiated by the exporting Entrepreneur;
  • levied due to the exporting Entrepreneur's breach of the loan obligations.

In cases where the loan nominal interest rate is lower than 12%, 8% is compensated by the state and the exporter pays the difference.

The Entrepreneur must export more than 10% of the goods produced. These data will be validated on the basis of quarterly reports which the Entrepreneur participating in the program will submit to the "Damu" Fund and "Damu", in turn, to the tax authorities for confirmation of the data received.

Subsidized loan amount can not exceed 24.6 mln. USD for each individual project of the exporting Entrepreneur. In this case, the loan amount is calculated separately for each project of the exporting Entrepreneur excluding loan debt of the affiliated entities/companies. If the total amount of the loan/balance of the principal debt of the loan provided to a single Project of the exporting Entrepreneur exceeds 24.6 mln. USD the exporting Entrepreneur shall be entitled to receive state support in the form of subsidies within the 24.6 mln. USD for one Project.

The subsidizing term will be from one (1) to three (3) years with the possibility of prolonging up to ten (10) years.

Support will be provided through subsidizing of part of interest rates for existing Bank loans.

The fourth direction is "Intensification of entrepreneurship potential":

The fourth direction is aimed at intensification of entrepreneurship potential to modernize production facilities and introduction of business modern management models.

The following support is provided under this direction:

support for new entrepreneurs (start-up projects);

service support to management of existing business;

training of top management of small and medium-sized businesses;

modernization and development of production facilities through the establishment of business relations with foreign partners;

training and retraining of personnel demanded in the labor market.

State free of charge support is provided to potential and existing entrepreneurs of small and medium-sized businesses in the priority sectors of the economy.

The entrepreneurs participating in the Program are selected by local executive bodies (hereinafter - LEB) in the regions.

Support for new entrepreneurs is based on learning the basics of entrepreneurship and provision of a standard package of documents for starting and running a business.

Service support is provided with specialized advisory services and support of the company main business processes to the management of existing business by agreement with the LEB.

Top management of small and medium-sized businesses will be trained at the business school of JSC "Nazarbayev University" and involving business courses with the use of modern teaching models.

The project "Business Communication" includes training of working entrepreneurs and organization of abroad training for the participants who will prepare the best business plans.

All the companies that meet the requirements of the Program can receive all kinds of support at the same time. According to the Program there are no restrictions for receiving all kinds of support. Let's say that a working company engaged in non-raw material sector, for example food or chemical industry, has a new project to be implemented. The company presents this idea to the Regional Coordinating Council, receives support in the form of the guarantee, then takes a new loan in the bank and proceeds to work. The same company, say, in another region, may have another existing production facility, which project includes possible subsidizing the load received for the existing debt.