In pursuance of the instructions of the Head of State aimed at stimulating business activity and establishing a unified and systematic approach to supporting small businesses, the Entrepreneurship Development Fund “Damu” (a subsidiary organization of the National Managing Holding “Baiterek”) is implementing the “Isker Aymak” programme.

The unified programme is aimed at ensuring access to affordable financing for micro and small business entities, including those operating in rural areas and small towns, through the subsidization of interest rates. Support is provided to enterprises operating in priority sectors of the economy, including manufacturing, agricultural processing, food production, the manufacture of furniture and construction materials, as well as handicrafts.

“The programme provides for the active participation of akimats and the National Chamber of Entrepreneurs ‘Atameken’ in determining priority sectors, taking into account the characteristics and specific features of each region. In order to ensure that support is truly targeted, each district may additionally select up to six areas based on the potential of the local economy. Separate priority is granted to participants of the ‘Auyl Amanaty’ and ‘One Village – One Product’ projects. A two-tier system for the allocation of funds has also been introduced: 30 percent of the budget is allocated to regions where support is most needed, namely Abai, Ulytau, Zhetisu, North Kazakhstan, and Kyzylorda regions, while the remaining 70 percent is allocated to other regions, with the exception of Astana and Almaty. In total, until and including 2028, the programme provides for support in the form of loans amounting to 1.2 trillion tenge, which will make it possible to support approximately 5,000 projects annually,” noted the Chairman of the Management Board of the “Damu” Fund, Farkhat Sarsekeyev..

Within the framework of the programme, the first projects have already been approved. As a result of subsidization, the interest rate on loans has been reduced from 22 percent to 13.2 percent. Among the recipients of financing is Everest Industry Limited Liability Partnership, a footwear manufacturer from the Almaty Region with a production capacity of up to 1,000 pairs per month. The company cooperates with public sector clients throughout the country, and the attraction of borrowed funds will make it possible to expand production and increase the output of specialized footwear. Currently, approximately 20 employees are engaged at the enterprise, with further job creation anticipated.

In the food industry segment, support has been granted to EcoFood KZ Limited Liability Partnership, an export-oriented project based in Ust-Kamenogorsk. The company produces sunflower oil under the “Zlato” brand with a capacity of up to 2,700 tonnes per year and supplies its products to foreign markets, including China. The financing is directed toward the acquisition of a bottling line and further expansion of production.

The programme has also been utilized by an individual entrepreneur from Shymkent, Otegenov Sagyndyk, who is developing the production of steel construction structures, including the launch of a new line for the manufacture of metal mesh. The primary consumers of the products are construction companies in Shymkent and the Turkestan Region, which creates stable regional demand and makes it possible to meet market needs without the necessity of importing products from other regions or from abroad. The implementation of the project will make it possible to increase production volumes, increase revenue, and create additional jobs.

Programme Subsidy Terms:

• maximum financing amount — up to 200 million tenge;

• purposes — investments and working capital replenishment;

• remuneration rate — the base rate of the National Bank of the Republic of Kazakhstan plus 4 percent;

• subsidy amount — 40 percent of the nominal rate, while the final rate for the borrower shall not be less than 12.6 percent;

• subsidy period — up to 3 years.

To participate in the programme and obtain subsidization, it is necessary to apply to financial partners, the list of which will be expanded. As of today, the Fund cooperates with 6 banks and 4 leasing companies:

• “Halyk Bank of Kazakhstan” JSC,

• “Bank CenterCredit” JSC,

• “ForteBank” JSC,

• “Nurbank” JSC,

• “Eurasian Bank” JSC,

• “Subsidiary Bank ‘Kazakhstan-Ziraat International Bank’ (KZI Bank)”,

• “Merz Leasing Machinery”LLP,

• “QZQ Finance” LLP,

• “Nur Leasing” LLP,

• “BCC Leasing” LLP.

Of particular importance is the combination of financial support with infrastructural advantages, such as preferential lease terms and specialized training. This makes the instrument more targeted, allows for a reduction in initial costs, and enables faster project launch. Registration for online training is available on the Fund’s website damu.kz. For remote districts, it is planned to launch mobile front offices that will provide consultations and accept applications on-site. 

Additional information about the programme may be obtained on the website damu.kz, as well as via the contact center number 1408.