The Share of the Manufacturing Industry in GDP - 13%
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At the Government session chaired by Prime Minister Olzhas Bektenov, the issue of developing and digitalizing the manufacturing industry was reviewed. Ministers of Industry and Construction, Energy, Agriculture, Healthcare, Artificial Intelligence and Digital Development reported on the ongoing work. The akims of Kostanay, Atyrau, and North Kazakhstan regions were also heard, primeminister.kz reports.
The Prime Minister noted that the development of the manufacturing industry is a fundamental condition for sustainable economic growth. In the first 10 months of the current year, the volume of production exceeded 24 trillion tenge, increasing by 5.8%. Growth was driven primarily by increased production in the key segments of metallurgy, mechanical engineering, the chemical industry, and construction materials.
Overall, over the past five years, production volume in the manufacturing sector has grown by almost one-third. Dozens of new enterprises have been launched, including with the participation of global leaders such as Kia, Sinopec, John Deere, and Claas. Exports of processed products exceeded $23 billion last year. These exports now include not only metals but also mechanical engineering, chemicals, and food products.
The Head of State has clearly defined the tasks of diversifying the economy, increasing labor productivity, introducing new technologies, and strengthening the country’s industrial potential. It is in the manufacturing sector that added value is created. Here, highly skilled jobs are opened. Manufacturing forms the technological sovereignty of the country. Today, the share of the sector in the country’s GDP structure is about 13%. It is important to continue the active diversification of the economy. Our goal is to increase the share of the manufacturing industry in GDP to 15% by 2030, and to 18-20% by 2035. I emphasize that this is a realistic task. We have everything necessary for this - raw materials, energy, a favorable geographical location, and young and educated human capital," Olzhas Bektenov emphasized.
The Prime Minister noted that the introduction of systemic measures to support domestic producers is an important factor for achieving the goal of increasing the share of manufacturing in the economy.
The mechanism adopted to ensure raw materials for processing enterprises in a number of industries is already showing results. Enterprises have received predictable conditions for capacity utilization and modernization planning.
Starting next year, a registry of Kazakhstani commodity producers will be launched, ensuring priority for genuinely operating domestic enterprises in regulated procurement markets.
In his Address to the Nation, the Head of State identified investments in manufacturing as a priority direction. Investment volume in the sector in the first 10 months of the current year amounted to 1.7 trillion tenge, which is 30% higher than in the same period last year.
This growth is primarily due to the launch of new production facilities under the Unified Industrialization Map. This year, 190 projects worth 1.5 trillion tenge are planned for implementation, of which 147 have already been launched. Last year, 180 projects were commissioned. The Ministry of Industry, together with sectoral government agencies and regional akimats, has been instructed to ensure the commissioning of the remaining projects by the end of the year.
The majority of industrial projects in the country are implemented in the territories of special economic and industrial zones. This underscores their key role as anchor platforms for industrialization. The Ministry of Industry, together with the Ministries of National Economy and Finance and regional akimats, has been instructed to develop a detailed plan for providing infrastructure to priority SEZs and industrial zones (IZs), specifying concrete timelines and funding sources.
The comprehensive plan for developing processing up to 2028, implemented in the agro-industrial complex, includes measures to provide enterprises with affordable raw materials, preferential loans, and increased export potential. Next year, several major projects are planned in the sector, including the launch of a sugar factory in Zhambyl region, fruit and berry processing in Almaty region, and a poultry farm in Shymkent. The Ministry of Agriculture has been instructed to ensure timely commissioning of all planned projects.
In the development of the manufacturing industry, digital transformation and the application of artificial intelligence technologies play a key role.
Kazakhstan already has positive examples of using such technologies. For instance, at the gold-mining enterprise "Altynalmas", digital systems are used to optimize logistics and control equipment operations in open-pit mines.
At KAZ Minerals mines, artificial intelligence analyzes large datasets, optimizes equipment operations, and identifies various risks.
At ERG, dozens of digital assistants are already in operation.
Olzhas Bektenov noted that enterprises must more actively adopt digital solutions and artificial intelligence, while government agencies must provide the necessary institutional and infrastructural conditions. At the same time, people occupy a special place in every sector. Without modern engineers, technologists, and skilled workers, high-quality and efficient development is impossible.
In this regard, the Ministries of Education and Science must integrate digitalization modules into the curricula of technical universities and colleges, with mandatory partnerships with industrial enterprises. The Ministry of Labor and Social Protection has been instructed to launch a program to train workers of industrial enterprises in basic digital competencies using online platforms.
Following the review of the development and digitalization of the manufacturing industry at the Government meeting, Prime Minister Olzhas Bektenov outlined several key tasks.
In particular, one of the most effective tools for supporting domestic producers is the mechanism of long-term contracts and off-take agreements. This year, 879 such agreements were signed with Kazakhstani producers, enabling enterprises to confidently plan their production and development. In this regard, the Ministry of Industry together with relevant government agencies has been instructed to increase the total number of signed long-term contracts and off-take agreements to at least 1,000 by the end of next year.
In Kazakhstan, fewer than 20% of manufacturing enterprises use modern digital technologies, including artificial intelligence. Meanwhile, in developed countries such as Germany and the United States, predictive monitoring systems reduce equipment maintenance costs by up to 15%.
The Ministries of Industry and Artificial Intelligence have been instructed to ensure the implementation of new AI projects at manufacturing enterprises for predictive equipment maintenance, automated quality control, and production optimization.
It is necessary to expand the potential of scientific research for the manufacturing industry. The Ministry of Industry, together with the Ministry of Science and Higher Education, must develop a comprehensive package of measures to support scientific research in the processing sector.
Overall supervision and coordination are assigned to First Deputy Prime Minister Roman Sklyar.
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