Small Businesses Receive Nearly US$168 Million as Part of Economy of Simple Things Lending Program in Two Years 

NUR-SULTAN – In 2019-2020, 1476 agricultural producers received preferential loans worth 71.4 billion tenge (US$168 Million) from the Agrarian Credit Corporation as part of the Economy of Simple Things concessional lending program.

Photo credits: inform.kz.

The Economy of simple things concessional lending program was implemented in 2019 as one of the government policies aimed at increasing domestic production of consumer goods and to diversify the national economy by supporting small and medium businesses. 

The Agrarian Credit Corporation implements state policy on the formation of an affordable credit system that stimulates the development of competitive entrepreneurship in rural areas. The corporation is part of the Baiterek holding group of companies.

“Financing SMEs in rural areas has a pronounced socio-economic effect. Over the two years of implementation of the Economy of Simple Things program, 1,600 new jobs have been created for village citizens,” said Ruslan Yeskendir, head of the Marketing and Public Relations of Agrarian Credit Corporation.

Starting a small business in a village has become much easier for start-up entrepreneurs of SMEs with state support in the form of concessional loans. An entrepreneur from Almaty Diar Makhpirov launched production of poultry processing with a capacity of 60 tons per year on 50 acres of land, reported the Kazinform news agency. 

The Farmersky Dvorik (Farm yard) company grows ecologically pure poultry meat, without the use of growth hormones and antibiotics, based on the principle of organic poultry farming. 

A modular farm consists of 16 containers, which are divided into blocks. In one block there are incubators, another contains poultry slaughterhouses and refrigerators, in the third there are feed production and a warehouse. There are also houses for staff. A total of six employees work on the farm. 

Makhpirov found out that the demand for natural farm products is growing in Kazakhstan. 

In 2019, as part of the Economy of Simple Things program Makhpirov acquired all the necessary equipment by approving a loan of more than 20 million tenge (US$47,000) with assistance from the Agrarian Credit Corporation. This poultry farm format is very convenient and mobile. The farm can easily adapt to any situation, up to moving to a new location.

According to Makhpirov, The Farmersky Dvorik (Farm yard) company has growing demand, supermarkets in Almaty and Nur-Sultan are willing to sell their eco-products.

“In 2020, we opened our online store and established a home delivery system. The share of home orders is already near 40 percent,” said Makhpirov.

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