Tools to support entrepreneurs in foreign - PDF document

1 Tools to support entrepreneurs in foreig
Tools to support entrepreneurs in foreign trade activity: The experience of Kazakhstan 2017 “Damu” Entrepreneurship Development Fund” JSC • Established in 1997 according to the Decree of the Government of the Republic of Kazakhstan • Mission: Fostering quality SME development in Kazakhstan through comprehensive support, including a wide range of financial instruments and programs for the development of competences • The sole shareholder - JSC “National Managing Holding” Baiterek ” 18 CES ( in every regional center, Astana, Almaty, Semey , Turkestan 14 Mobile CES in districts Regional network: 2 Tools to support entrepreneurs in foreign trade activity offered by the Fund "Damu" Subsidies Guarantes Fin

2 ancing Funding entrepreneurs through B
ancing Funding entrepreneurs through Banks under program of support for SMEs in the manufacturing sector The partial credit guarantees on loans to entrepreneurs under the Unified program of business development and support "Business Road Map 2020" Subsidizing interest rates of entrepreneurs under the Unified program of business development and support "Business Road Map 2020" 3 Subsidized interest rates on loans / leasing transactions • Main terms : • Period of subsidizing – 3 years , with prolongation up to 6 years • The maximum amount of subsidized credit / leasing – 4,5 bln . tenge ($14,5 mln /) Including up to 30% for replenishment of working capital (1,35 bln . tenge ($ 4,3 mln .)) and up to 70% for inv

3 estment purposes (2,95 bln . tenge (
estment purposes (2,95 bln . tenge ($ 9,5 mln .)) • The purpose of the project - investments, replenishment of working capital, refinancing • Special term: the amount of foreign exchange earnings from the total volume of earnings for the previous 6 months is not less than 10% • The main terms for projects in foreign currency: • The maximum rate on the loan / leasing - 12% per annum • Subsidized rate - 5% per annum • The main terms for projects in tenge : • The maximum rate on the loan / leasing - 19% per annum • Subsidized rate on loan - 6% per annum • Subsidized rate on leasing – 7% per annum Unified program « BRM 2020 » Direction "Reducing currency risk" 4 Participants of the 3rd dire

4 ction - Entrepreneurs, sells and (or)
ction - Entrepreneurs, sells and (or) plan to implement their own projects in the priority sectors of the economy and the priority sectors of the manufacturing industry as defined in the State Program for Innovative and Industrial Development of the Republic of Kazakhstan for 2015 – 2019 The partial guarantee on loans • Guaranteeing projects in priority sectors - up to 50% on loans up to 360.0 million tenge • Guaranteeing projects in the sectors of manufacturing industry - up to 20% on loans up to 1,850 bn • Purpose of project - investment and the modernization and expansion of production • Guaranteeing loans to 60.0 million tenge, 100% of which is directed to the RWC – allowed • Terms of guaranteeing –

5 up to 5 years • For loans, 100% of w
up to 5 years • For loans, 100% of which is directed to the RWC - term guarantee of 3 years 5 Unified program « BRM 2020 » Direction "Industry Support" Participants of the 2nd direction - Entrepreneurs, sells and (or) plan to implement their own projects in the priority sectors of the economy and the priority sectors of the manufacturing industry as defined in the State Program for Innovative and Industrial Development of the Republic of Kazakhstan for 2015 – 2019 The program to support SMEs manufacturing industry at the expense of the National Fund of the Republic of Kazakhstan Interest rate Amount of credit Term 6% Up to 1 850 mln . tenge Up to 120 months 6 • Allocated in April 2014 1 tranche 100 bln

6 . tenge • Allocated in December 2
. tenge • Allocated in December 2014 2 tranche 50 bln . tenge • Allocated in March 2015 3 tranche 50 bln . tenge Application of funds (773 projects , 149,1* bln . tenge ) Application of funds (422 projects , 1 05 ,0* bln . tenge ) Application of funds (484 projects , 91,8* bln . tenge ) • *Banks issued by repayable funds on previously issued loans Dynamic of subsidizing results Support for exporters Subsidizing of interest rates 7 Since the start of the Unified program of business development and support "Business Road Map 2020“ in the third direction "Reduction of currency risk" supported 312 projects amounting to exporters 3 97 . 8 billion tenge , paid 2 3 . 3 billion te

7 nge subsidies. Amount of credit, mln
nge subsidies. Amount of credit, mln. tg The number of signed contracts, units 245,501 322,019 368,944 386,062 397,458 397,817 177 221 274 291 310 312 0 100 200 300 400 500 0 150,000 300,000 450,000 01.01.13 01.01.14 01.01.15 01.01.16 01.01.17 01.04.17 Amount of credit, mln. tenge Number of signed contracts, units Number of subsidy contracts by region, unit 8 The largest number of exporters’ projects subsidized in South - Kazakhstan, Kostanay , North - Kazakhstan, East - Kazakhstan and Akmola regions. According to the amount of credits, the leading regions are South - Kazakhstan, Kostanay , East - Kazakhstan, Akmola and Almaty regions. Amount of credits of subsidy contracts by region, mln. tenge

8 Support for exporters Subsidizing o
Support for exporters Subsidizing of interest rates 1 2 3 4 4 5 6 7 11 13 20 27 41 50 59 59 0 10 20 30 40 50 60 70 Atyrau r. Zhambyl r. Kyzylorda r. Aktobe r. Mangystau r. Astana Almaty West-Kaz r. Almaty r. Pavlodar r. Karaganda r. Akmola r. East-Kaz r. North-Kaz r. Kostanay r. South-Kaz r. 1,583 2,103 5,672 5,968 10,279 11,439 13,466 16,762 16,902 17,563 24,533 36,963 45,527 53,396 57,508 78,153 0 20,000 40,000 60,000 80,000 100,000 Atyrau r. Kyzylorda r. West-Kaz r. Zhambyl r. Astana Almaty Mangystau r. Karaganda r. Aktobe r. Pavlodar r. North-Kaz r. Almaty r. Akmola r. East-Kaz r. Kostanay r. South-Kaz r. Number of subsidy contracts by industries, unit 9 In the sectorial structure of

9 the projects: • 42% - food produ
the projects: • 42% - food producing projects • 21% - heavy industry projects Support for exporters Subsidizing of interest rates Amount of credits of subsidy contracts by industries, mln. tenge 1 2 2 3 5 6 13 13 20 49 67 131 0 50 100 150 Furniture Paper prod. Other Other types of industry Building materials Agriculture Light industry Transporting Chemical industry Trade Heavy industry Food industry 75 363 1,616 2,448 2,792 5,302 16,016 26,223 26,588 79,919 114,787 121,689 0 50,000 100,000 150,000 Furniture Other Building materials Other types of industry Agriculture Paper prod. Transporting Light industry Chemical industry Trade Food industry Heavy industry Information about exporters -

10 customers of the Fund "Damu" by countr
customers of the Fund "Damu" by country 10 Exporters - customers of the Fund " Damu " sell their own products:  mainly in Russia, Uzbekistan, Tajikistan, Kyrgyzstan and China. Number of exporting enterprises by country The distribution of exporting enterprises by country 5 5 5 6 6 7 14 15 23 23 29 41 0 20 40 60 Ukraine Mongolia Turkey Georgia Belarussia Azerbaijan Europe China Tajikistan Kyrgyzstan Uzbekistan Russia 1 1 2 3 5 6 10 12 12 108 0 50 100 150 9 countries 8 countries 7 countries 10 countries 4 countries 6 countries 3 countries 5 countries 2 countries 1 country The structure of export products of “Damu” Fund’s customers 11 Country Name of export products Russia, Kyrgyzsta

11 n, Uzbekistan, Tajikistan  grain p
n, Uzbekistan, Tajikistan  grain products, wheat, barley,  flax seeds, meal, cotton hulls  mineral and drinking water,  cooking and technical salt,  fruit and vegetable and flower production,  insulating materials, insulating varnishes  liquid ammonia, ammonium nitrate,  starter batteries, stationary batteries and diesel,  plastic pipes and plastic products  capacitor equipment China  packaging products made of polypropylene and polyethylene,  chocolate products  flour products,  flax, peas, seeds, felt,  semi - finished product "wet - blue" from the skins of cattle and small cattle, leather, protein waste of raw hides, semi - finished "wet blue" from the cattle skins Turkey  p

12 olypropylene and polypropylene bags, ï
olypropylene and polypropylene bags,  semi - finished product "wet - blue" from the skins of cattle and small cattle, leather, protein waste of raw hides, semi - finished "wet blue" from the cattle skins EU  Frozen fish fillets (pike, carp, catfish and others.)  fruits and vegetables,  Packaging products of polypropylene and polyethylene  Chocolate products  Felt, washed wool, textiles, liquid ammonia Georgia  capacitor equipment  plant protection products and fertilizers, wheat Headquarters 050004, Almaty, Gogol str. , 111 Phone : 8 (7 2 7) 244 - 55 - 66, 244 - 55 - 77 Call - center : 1408 Fax : 8 (727) 278 07 76 E - mail : info @ fund . kz web : http :// www . damu . kz Thank you for your atten