ASTANA — President Kassym-Jomart Tokayev delivered an address to the country’s entrepreneurs at the Dec.5 ceremony honoring the winners of the Altyn Sapa (Golden Standard), Paryz (Duty), and Best Product of Kazakhstan awards, emphasizing Kazakhstan’s strong economic momentum, rapid export expansion, and the need for deeper structural reforms to sustain long-term growth.
This year’s participants of the Paryz competition have directed more than 37 billion tenge (US$73 million) toward charitable causes. Photo credit: Akorda
Non-oil exports nearly double as manufacturing and SMEs drive growth
President Tokayev noted that Kazakhstan’s economy is expected to grow by more than 6% this year, the highest rate in a decade, with GDP projected to exceed $300 billion for the first time. He highlighted significant progress in diversifying the economy, stressing that non-extractive sectors are increasingly contributing to national growth.
Tokayev underscored that non-oil exports have nearly doubled, supported by robust expansion across the real sector, reported Akorda.
“Over the past five years, gross value added in manufacturing has increased by more than 25%, significantly outpacing growth in the mining industry,” he said.
He added that investments in fixed capital have risen by 70%, labor productivity in the real sector has grown by 40%, and the number of exporters has tripled, expanding Kazakhstan’s export geography to 140 countries.
Small and medium-sized enterprises (SMEs) remain a central driver, with their share in the economy reaching 40%. The number of SME entities has increased by 1.5 times, and their total output has grown 2.5 times over five years. Today, 4.5 million people work in the business sector, nearly half of the country’s employed population.
Digital transformation and AI to add up to $20 billion to GDP
Tokayev’s speech also focused on technological transformation. He emphasized that rapid developments in artificial intelligence (AI) could reshape the global economy, and Kazakhstan must seize these new opportunities.
“For Kazakhstan, the effect of digitalization and AI adoption could amount to $14 to $20 billion added to GDP,” Tokayev stated.
He stressed that the relationship between the state and businesses must evolve through greater use of digital tools, automation, and full-scale digitalization of public services.
President Tokayev reiterated the need to reduce administrative burdens on businesses. Ongoing reforms include a moratorium on the creation of new quasi-state entities and the planned transfer of 473 assets to competitive markets, potentially generating up to 3.5 trillion tenge (US$6.9 billion) in private-sector income. A new center for regulatory intelligence and a registry of mandatory requirements aim to modernize legislation and cut bureaucracy.
“Entrepreneurs must clearly feel that bureaucracy is shrinking and will inevitably become a thing of the past,” he said.
Global investment slowdown and the need for a strong domestic policy
Tokayev also addressed the challenging global investment environment. Citing UNCTAD data, he noted that global foreign direct investment flows fell by 11% in 2024 to $1.5 trillion, with geopolitical tensions and supply chain fragmentation as the main drivers.
“We must improve investment conditions and launch a new investment cycle,” he said.
Ensuring food security remains another national priority, as Kazakhstan still imports significant volumes of essential goods. This is “unacceptable,” Tokayev said, especially given the record 1 trillion tenge (US$1.9 billion) of state support allocated to the agricultural sector this year.
Tokayev concluded his remarks with a Kazakh proverb, saying, “Where goodness walks, there will never be scarcity.” He also highlighted that this year’s participants of the Paryz competition have directed more than 37 billion tenge (US$73 million) toward charitable causes.
