ASTANA – Kazakhstan’s manufacturing sector recorded a 7.2% growth from January to April, according to Minister of Industry and Construction Yersayin Nagaspayev, who presented the data at a June 3 government meeting.
Photo credit: gov.kz
The strongest growth dynamics were observed in mechanical engineering and the chemical industry, both increasing by 111.2%, the construction materials sector grew by 112.9%, and the furniture industry saw a notable 114.8% rise, reported the Prime Minister’s press service.
Kazakhstan is also seeing a rise in the share of domestically produced goods, notably in metallurgy, light industry, and electronics. This trend is contributing to the gradual replacement of imported products. Nagaspayev noted that one of the key tools supporting domestic manufacturers is the priority access given to local companies in regulated procurement processes.
To boost local participation, exemptions from the national regime have been introduced for nearly 4,834 items. As a result, over the first five months, more than 96,000 contracts worth 303 billion tenge (US$593.7 million) were signed by government agencies, three times more than during the same period last year.
Requirements for major purchasers
In a move to deepen domestic value creation, large-scale purchasers, including government bodies and subsoil users, will now be required to develop and implement programs aimed at increasing the share of locally produced goods, works, and services in their procurement. These efforts are designed to help create stable and reliable production facilities capable of meeting industry needs.
Demand for small industrial zones is rising across the country. Introduced in 2024, the government’s new program supports regional businesses by offering ready-made production spaces. According to the ministry, 34 small industrial zones are currently being developed across eight regions, covering an area of more than 200,000 square meters. Some 46.6 billion tenge (US$91.3 million) has been allocated from the national budget to implement the initiative.
Minister Nagaspayev emphasized the program’s popularity among businesses and confirmed that the Ministry is working on securing additional funding to support more applications through the Industrial Development Fund.
“The program has shown high demand from businesses in the regions. The ministry is considering additional funding to address the applications submitted to the Industrial Development Fund,” said Nagaspayev.
Prime Minister Olzhas Bektenov stated that all large enterprises must develop and adopt domestic value programs, which include the creation of a network of small and medium-sized businesses around them.
“If industrial enterprises do not implement such programs, there will be no state support,” he concluded.
