NCE suggests to create a center of import substitution, which will stimulate the growth of domestic commodity production and the proportion of local content in the procurement of private sector

"10 steps for the development of the business" - the timely response of the business community to the changing conditions of the global and domestic economy, they believe in the Committee of the manufacturing industry NCE RK "Atameken".

The program "10 Steps" was developed by NCE in the context of execution of the order of the President on economic growth, according to the results of the extended meeting of the Government in September of this year. The program reflects the key directions of development of Kazakhstani business, taking into account external and internal factors of the economy.

The Committee of the manufacturing industry of NCE RK works on the implementation of specific measures in the framework of the "10 steps". The center of import substitution should become one of the tools.

"Within the framework of our competence, we are planning to create a platform on which will be accumulated strategically important areas of business processes. The Centre of import substitution will collect and analyze data from entrepreneurs. It implies close collaboration with the business, obtaining information from the source to the actual needs of the procurement: raw materials, materials and other fixed assets of current production; data on the modernization plans, staffing requirements", - says the chairman of the Committee of manufacturing industry NCE RK Duman Kydyrbaev.

Every business request will be ensured within the framework of local content, which corresponds to the fourth step of the program - local content.

As it was noted in the program, in the current economic conditions, it is important to stimulate demand for the products of domestic production. Everyday products and products in constant demand play a key role in this process in the framework of state procurement, procurement of quasi-public sector and subsoil users. The annual consumption of this category of goods - clothes, shoes, food, furniture and other – is about 1.9 trillion tenge. The total share of consumption of domestic production of goods does not exceed 30%.  

"The new platform will increase the average consumption of locally produced goods and will expand the format of B2B relations, B2C, B2G. There will be ensured growth of products for production purposes - equipment, machinery, raw materials and so on, that is, cross-system manufacturers", - said the head of the Committee of the manufacturing industry.

In parallel with the introduction of incentive mechanisms to promote the products of domestic producers in the various categories, it is planned to implement the responsibility of the producers in terms of contractual obligations in order to improve the quality and competitiveness of products.

  Combined implementation of these measures will allow to implement the fifth step - SMEs - a key driver of economic growth.

"In the context of significant state support of business, entrepreneurs themselves should be taken into account as much as possible the potential of local content, i.e. Kazakh products, which they can and should be used in the presence of an appropriate quality on domestic products, not spend money on the purchase of imported goods", - emphasizes Duman Kydyrbaev.

In addition, the work of the Centre will allow to implement the sixth and the ninth steps of the Program - Business Navigator and Business Constructor, pseudo-entrepreneurship and protection of bona fide entrepreneurs.

"By expanding the tools of state support of business, we expect to ensure the maximum volume of workload of domestic producers through state procurements. Mechanisms for exemption of low quality products from the market will be introduced", - says the chairman of the Committee of the manufacturing industry.

Import substitution Center will enhance long-term contracts within the internal cooperation of associations, members of the Committee of the manufacturing industry.

The new structure will also monitor and analyze systematic problems of the industry, identify the most import-dependent regions and solve actual problems.

 In general, the launch of Import Substitution Centre at NCE will stimulate the growth of domestic commodity production and the proportion of local content in the procurement of the private sector, it will build a complete value chain, from raw materials to finished products.

Currently, if the business needs this institution, entrepreneurs should participate actively in the work of the Centre.

A second instrument for implementing "10 steps", the Committee of manufacturing industry is considering the creation of a training center, based on objective human needs of the business.

The Committee is also planning to hold subcommittees for specific areas of the program "10 Steps" and urged entrepreneurs to participate actively in its work.