The number of small- and medium-sized enterprises rose 27% to 1.8 million in Kazakhstan last year, Kazinform correspondent reports.
Despite the difficult external environment, the real economic growth stood at 3.2% in 2022. An unprecedented $28bn worth of direct foreign investment, up 18%, was attracted to the country. It is the highest figure since 2012. Investments in fixed capital rose by 8% in real terms. Foreign trade increased 32% and stood at $134bn", - said Kazakh National Economy Minister Alibek Kuantyrov.
According to him, the number of small- and medium-sized enterprises rose 27% to 1.8 million in Kazakhstan last year.
The total number of those engaged in the sector rose by 13% and reached 3.9 million people. As a result, the share of SMEs in the economy increased from 33.5% to 36%. The international rating agencies confirmed Kazakhstan’s sovereign rating at the level of investment reliability. At the end of last week, the Fitch international agency affirmed Kazakhstan’s sovereign credit rating", - said the minister.
He went on to add that according to the plan, this year it is expected KZT18.3tln is to be invested in fixed capital, 22% more than in the previous year.
Beet growers in Kazakhstan to receive payments for crop yields in nearest future
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Under the chairmanship of Deputy Prime Minister Serik Zhumangarin, the Government held a meeting on production and stabilisation of prices for basic foodstuffs. During the discussion, decisions were made to provide sugar factories with working capital and payment of subsidies to beet growers, primeminister.kz reports.
This year's gross beet harvest is expected to amount to 1.1 million tonnes, which will yield about 120 thousand tonnes of sugar. With the beginning of the harvest, beet growers have repeatedly raised the issue of subsidies and payment by factories for the delivery of beet for processing. According to the regulations, farmers receive subsidies of 25 tenge for each kg of beet, and the purchase price at the factories is 15 tenge/kg. In total, the farmer is entitled to 40 tenge per 1 kg of the crop submitted for processing.
By the decision of the Government at the end of September, the list of activities of socio-entrepreneurial corporations in Zhetysu, Zhambyl and Almaty regions, where beetroot is grown, was expanded, which will allow these corporations to finance sugar factories to replenish working capital at a favourable interest rate. The total amount of preferential lending to sugar factories from Agrarian Credit Corporation JSC is 25.8 billion tenge. The credit line has already been opened for the plant "Aksu Kant" in the amount of 15 billion tenge and allocated through SPK "Zhetisu" 1.6 billion tenge. Merken sugar factory has been granted a credit line for 10.8 billion tenge. This will allow sugar mills to pay sugar beet growers for the new crop in the near future.
To subsidise farmers for the delivery of sugar beet for processing (25 tenge/kg), the necessary funds will be allocated from the Government reserve in the near future. Payments to farmers will be made in stages in accordance with the established procedure. To reimburse the transport costs of farmers in Zhambyl region, who have to transport 100 thousand tonnes of sugar beet to Aksu sugar factory in Zhetysu region, the subsidy norm was increased from 25 thousand tenge to 45 thousand tenge per tonne.
At the meeting, Deputy Minister of Agriculture Yermek Kenzhekhanuly informed about the results of the audit of food stocks in the regional stockpiles. A working group was set up for the audit, which included representatives of the Committee of Trade of MIT, Committee of State Inspection in the agro-industrial complex of the Ministry of Agriculture, Ministry of Agriculture, AZRC. According to the results of the audit, the declared state of stocks was confirmed. However, the audit in Aktobe region showed that not all forward contracts were concluded exactly with agricultural producers. Serik Zhumangarin gave the Akimat of the region a one-week deadline to renegotiate contracts with existing farmers. Trade Committee was instructed to assist in finding vegetable producers from other regions, ready to supply products to Aktobe region.
The meeting also noted the continuing deflation of basic food products: from the beginning of the year to 1 October the dynamics of price growth was -0.3%. Over the past week, the average price index remained unchanged, with zero growth rate.
For the past eight months capital investments in the tourism sector in Kazakhstan grew by 69% compared to the last year to reach 527.6 billion tenge, Kazinform News Agency learnt from the Tourism and Sports Ministry.
148 investment projects generating 2,500 new jobs in the regions will be developed by the yearend. The projects are called to improve the country's tourist infrastructure and to attract tourists.
The growth of tourism investments demonstrates high interest in boosting this strategically important sector. Providing destinations with the necessary infrastructure will make Kazakhstan more attractive for international and domestic tourists, head of the tourism industry committee Nurtas Karipbayev said.
64 infrastructure projects are being implemented in Kazakhstan to bolster the tourism sector of Kazakhstan and make travel more comfortable.
Kazakhstan's economy to slow down in 2024, then accelerate in 2025 - ADB
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The Asian Development Bank (ADB) has marginally revised downwards its economic growth outlook for Kazakhstan in 2024, following weaker expansion in services in the first half of the year coupled with lower oil outputs, massive floods, and a slowdown in investment, ADB reports.
The Asian Development Outlook (ADO) September 2024, the latest edition of ADB’s flagship publication, projects 3.6% growth of Kazakhstan’s gross domestic product (GDP) this year, slightly lower than the bank’s previous forecast of 3.8% in April 2024. The Central Asian nation’s economic growth is expected to accelerate to 5.1% in 2025.
In the first half of 2024, tax revenue collection declined as receipts from oil duty and value added tax were lower compared to the same period in 2023. The decline in tax collection was offset by higher transfers from the sovereign wealth fund, the National Fund of the Republic of Kazakhstan (NFRK), with the government utilizing three-quarters of planned annual transfers in the period. This partially led to the national currency appreciating as the central bank converted the NFRK foreign currency receipts to tenge to meet the government transfer requests.
While the economic growth prospects for Kazakhstan’s look positive in the medium term, its fiscal challenges need to be addressed to ensure sustainable and inclusive economic growth," said ADB Country Director for Kazakhstan Utsav Kumar.
Average inflation slowed to 8.9% in the first 7 months of 2024 down from 17.2% last year. Inflation is projected to slow further to 6.1% in 2025, reflecting tight monetary policy and a stable exchange rate enabled by substantial foreign reserves and commodity export earnings. The combined reserves in the NFRK and the central bank surpassed $100 billion as of June 2024.
Kazakhstan joined ADB in 1994. ADB has since committed about $7 billion in loans to the government and private sector, grants, and technical assistance.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members-49 from the region.
Olzhas Bektenov and First Deputy Prime Minister of Georgia Levan Davitashvili discuss trade and economic cooperation issues
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Prime Minister of Kazakhstan Olzhas Bektenov met with First Deputy Minister - Minister of Economy and Sustainable Development of Georgia Levan Davitashvili, who arrived in Astana to participate in the 12th meeting of the Kazakhstan-Georgia Intergovernmental Commission on Trade and Economic Cooperation, primeminister.kz reports.
The issues of interaction in the spheres of transport and logistics, agro-industrial complex, energy, tourism, aviation industry, as well as strengthening cultural and humanitarian ties were considered.
Georgia is an important and reliable partner in the South Caucasus. In the first quarter of this year, Georgian investors invested $88.5 million in Kazakhstan's economy, while the total investment volume has exceeded $500 million over 10 years.
The parties emphasised the prospects in the transit and transport sphere. Major transcontinental transport corridors pass through the territories of the two countries as the shortest routes from Europe to China and South-East Asia.
Kazakhstan and Georgia are actively co-operating within the framework of the development of the Trans-Caspian international transport route. Cargo transshipment along this route grew by 65% last year and by 69% in the first 8 months of this year, reaching 2.9 million tonnes.
The Head of State pays great attention to the development of the Middle Corridor, and we aim to increase the volume of traffic along this route to 10 million tonnes of cargo. For this purpose, the Government is taking consistent measures to improve transit conditions," Olzhas Bektenov stressed.
Head of the Government of the Republic of Kazakhstan noted the importance of continuing joint work on establishing competitive tariff conditions, reducing delivery time and increasing the volume of transportations along the TMTM route, including the line Baku - Tbilisi - Kars. Along with this, the need for active digitalisation of the transport corridor, which will increase its attractiveness for international carriers.
In turn, Levan Davitashvili expressed interest in strengthening cooperation with Kazakhstan and noted the special role of the Intergovernmental Commission, which is called to give a new impetus to the development of bilateral relations.
The participants of the meeting confirmed the intention to continue multidimensional work to ensure the dynamic development of trade and economic partnership.
Olzhas Bektenov and Deputy Managing Director of the IMF Bo Li discuss financial and economic cooperation issues
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The Prime Minister of Kazakhstan Olzhas Bektenov met with the Deputy Managing Director of the International Monetary Fund Bo Li, primeminister.kz reports.
The meeting focused on cooperating in the financial and economic areas.
Kazakhstan has been a member of the IMF since 1992. Long-term partnership with the Fund is important to ensure economic stability of the country and quality sustainable growth of the national economy.
The participants of the meeting emphasized the strategic nature of cooperation between Kazakhstan and the IMF.
Positive results of joint work on structural reforms, development of fiscal policy and financial market of Kazakhstan testify to the high importance of cooperation.
The opening of the IMF's Regional Capacity Development Center for the Caucasus, Central Asia, and Mongolia in Almaty last year gave new impetus to bilateral and regional dialogue on maintaining international financial stability.
It was noted that as a result of the systematic policy of the head of state on comprehensive modernization of the economy on September 9 this year Moody's rating agency upgraded Kazakhstan's sovereign rating to Baa1 with stable outlook.
The assigned rating is the highest for all years of the country's independence, and confirms the continued improvement of the institutional environment and the sustainability of the pace of economic diversification.
Olzhas Bektenov emphasized that the Government of Kazakhstan, together with the National Bank and the Agency for Development and Regulation of the Financial Market, intends to pursue a consistent policy aimed at achieving high-quality economic growth.
Ongoing reforms aim to further improve the effectiveness of fiscal policy, financial accountability and tax administration.
In turn, IMF Deputy Managing Director Bo Li noted that the Fund is committed to continuing the strong and constructive partnership with Kazakhstan aimed at growing Kazakhstan's economy and enhancing the welfare of its people.
To this end, regular policy advice on priority reforms and technical assistance provided by the IMF to the government agencies contribute to strengthening the institutional frameworks and private sector development.
At the end of the meeting, the parties confirmed their intention to strengthen the partnership across the entire spectrum of cooperation.
Ant Group sees 300% rise in international users adopting mobile payment in China in 2024
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Ant Group today announced the number of international visitors who have used its mobile payment services in China quadrupled over the past six months, following the launch of the International Consumer Friendly Zones program in March that has now expanded to 70 Chinese cities, Ant Group reports.
Speaking at the 2024 INCLUSION·Conference on the Bund, Cyril Han, President and CFO of Ant Group, said transaction volumes of inbound tourists using Ant-supported mobile payment services grew by sixfold between March and August 2024 year-on-year. This surge has created significant business opportunities for local merchants. The number of Chinese merchants regularly servicing overseas travelers through the company’s mobile payment solutions have tripled during the same period.
Since 2019, Ant Group, with the support of the People’s Bank of China, has collaborated with international card networks and overseas digital wallets to drive innovation in inbound mobile payments, a collective effort known as the China Payment Facilitation Partnership. During the 2023 Hangzhou Asian Games, Ant introduced two mobile payment solutions for international visitors, and the number of supported international payment partners has continued to grow since then.
Through Alipay+, the cross-border mobile payment and digitalization solutions operated by Ant International, international visitors can pay with their home e-wallets across China. Alipay+ now supports 13 leading e-wallets and payment apps in Asia for use across an 80-million-strong merchant network in China, an increase from 10 payment partners in 2023. Those include AlipayHK (Hong Kong SAR, China), Kaspi.kz (Kazakhstan), MPay (Macao SAR, China), Touch 'n Go eWallet (Malaysia), Hipay (Mongolia), NayaPay (Pakistan), Changi Pay (Singapore), OCBC Digital (Singapore), Kakao Pay (South Korea), Naver Pay (South Korea), Toss Pay (South Korea), TrueMoney (Thailand), and GCash (the Philippines).
The other option allows visitors to bind major international bank cards - Visa, Mastercard, JCB, Discover®, Diners Club International, and UnionPay International - to the Alipay app to access to a rich array of local services, including shopping, dining, ride-hailing and public transportation, without needing a Chinese-mainland bank account or phone number. The number of card networks supported on Alipay is expected to increase to 7 as American Express has recently received an approval for an inbound wallet solution in China.
In addition to increased payment volumes, inbound tourists are embracing value-added services available on digital wallets for more immersive local experience. The number of Alipay+ partner wallet users redeeming digital coupons increased by 105% quarter-on-quarter over the past six months. Alipay+ wallet partners also introduced over 160 China-travel mini-programs to help visitors access services such as luggage storage, power-bank rentals, massage chairs, and even claw machines.
Inbound tourism to China is experiencing a robust recovery, driven by a combination of government policies and private-sector initiatives like the International Consumer Friendly Zones program. These efforts have significantly alleviated challenges such as visa requirements, payment accessibility, and transportation capacity, making it easier for people to explore China," says Liu Yufeng, Deputy Secretary-General, World Tourism Alliance, a China-based international tourism organization that currently has 253 members from 45 countries and regions.
Mohammed Badi, President of Global Network Services, American Express, said "American Express and Alipay have discussed potential areas of collaboration to deepen our partnership and we recently received approval from the State Administration of Foreign Exchange for an inbound wallet solution, which we very much appreciate. Both American Express and Alipay will share more information with our customers, stay tuned."
OCBC was the first Singaporean bank to offer global cross-border payment services through our own app via Alipay+, enabling our Singaporean customers to make payments easily at millions of merchants within Alipay+'s global ecosystem, including those in the Chinese mainland. As Alipay+ continues to expand its global services, we will keep improving our products and enhancing user experience, striving to gain recognition in even broader markets," says Ang Eng Siong, Chief Executive Officer, OCBC China.
Images | Ant Group
In first half of 2024, the number of users utilizing Alipay+ via the OCBC app doubled on year, with the transaction amount nearly tripling, said Mr. Siong.
We've been encouraged by the substantial growth in mobile payment adoption among international visitors and the resulting boost in transactions for our merchant partners, especially since the launch of the International Consumer Friendly Zones program. Ant Group is committed to further elevating inbound travel experience through technological innovation and partnerships," says, Cyril Han Xinyi, President and CFO, Ant Group.
Ant Group alongside its partners launched the International Consumer Friendly Zones program in Beijing in March 2024 to improve digital payment options' accessibility and ease of use for international travelers and has since expanded it to 70 cities, including Shanghai, Guangzhou, Shenzhen, Chongqing, and Chengdu. The program also covers 500 tourist hot spots, such as the Bund in Shanghai and Hangzhou’s famed West Lake.
At the main forum of the Conference, Peng Yang, CEO of Ant International, noted the impact of digital innovations on opening low-cost growth paths for SMEs across main businesses of the Singapore-based company. "Alipay+ has established a global network of 90 million merchant partners across 57 markets to make global travel seamless; while WorldFirst and Antom offer secure and fast digital payment solutions tailored to the needs of SMEs, global merchants and platforms. We look forward to expanding our partnership for digitalization and inclusion in all regions."
About Ant Group
Ant Group traces its roots back to Alipay, which was established in 2004 to create trust between online sellers and buyers. Over the years, Ant Group has grown to become one of the world's leading open Internet platforms. Through technological innovation, Ant Group supports its partners in providing inclusive, convenient digital life and digital financial services to consumers and SMEs. In addition, it has been introducing new technologies and products to support the digital transformation of industries and facilitate industrial collaboration. Working together with global partners, the company enables merchants and consumers to make and receive payments and remit around the world.
About Ant International
Headquartered in Singapore, Ant International powers the future of global commerce with digital innovation for everyone and every business to thrive. In close collaboration with partners, we support merchants of all sizes worldwide to realize their growth aspirations through a comprehensive range of tech-driven digital payment and financial services solutions.
About Alipay+
Alipay+ is a suite of cross-border digital payment, marketing and digitalization solutions that help connect global merchants to consumers. Consumers enjoy seamless payment and a broad choice of deals using their preferred payment methods while travelling abroad. Small and medium-sized businesses may use Alipay+ digital tools to enhance efficiency and achieve omni-channel growth.
Kazakhstan sees manufacturing overtake mining in GDP share
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Manufacturing has overtaken the mining industry in terms of its share in the GDP of Kazakhstan in 2024, Industry and Construction Minister Kanat Sharlapaev said during the Astana Finance Days 2024 Conference in the Kazakh capital of Astana, Kazinform News Agency correspondent reports.
During the event, the Kazakh minister pointed out that Kazakhstan is interested in attracting investments in rate earth metals and battery technologies for the automotive industry.
Kazakhstan’s non-ferrous metals production has grown 6% year-over-year, which is attributable not only to commodity prices, but also to institutional support and transition to clean energy.
Our country’s legislation is well developed to be convenient for investors. Also, there are a few countries with such a level of supply of natural resources. As for manufacturing, there was an interesting case this year. In fact, manufacturing has overtaken the mining industry in terms of its share in the GDP. This is, indeed, one of the goals, that the country has been pursuing for many years, said Sharlapaev.
The minister went on to say that for many countries, that have long been commodity exporters, this was unattainable, however, our country has surpassed this threshold this year.
Kazakhstan spent 1.06 billion US dollars for importing drugs manufactured abroad in January - June this year. It is the biggest volume in the first half of the year since at least 2019, Kazinform News Agency quotes the Telegram Channel of the First Credit Bureau.
The delivery costs nominally grew by 56% year on year. The last surge was recorded two years ago up to 39%.
Volumes of imports also broke a record reaching 18,900 tons which is 38% more compared to the same period of 2023.
Kazakhstan imports pharmaceuticals from many countries. It imports primarily from Germany with 16% (173.3 million US dollars), India - 9% (93.4 million US dollars), Italy - 7% (74.1 million US dollars), and Russia - 6% (58 million US dollars).
Notably, Russia makes 27% of the cumulative net weight of deliveries up to 5,200 tons.
For the past six months, Kazakhstan manufactured medicine worth 87.3 billion tenge (194.4 million US dollars).
