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Ablay Myrzakhmetov: "Business needs sales markets"

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This was stated by the Chairman of NCE RK "Atameken" at the II forum of domestic producers "Uly Dala Eli"

The forum of domestic producers and the Republican contest-exhibition "The Best Product of Kazakhstan" will be held on 18th-19th of November at "Korme" exhibition center in Astana, where will be presented 145 companies-winners of regional contests.

Conduction of the contest-exhibition "The Best Product of Kazakhstan" on the same site with the Forum of domestic producers "Uly Dala Eli" brought together the country's major clients (state bodies, national holdings, national companies) and domestic producers, which in the framework of B2B meetings are able to discuss many problematic issues in this area. Customers also have the opportunity to see firsthand what goods are produced in Kazakhstan.

"The production of any goods or services always depends on demand. Demand – is a key indicator, based on which a business plan is compiled. We have an internal conflict in trade and the sphere of production, which has existed for a long time. Following the meeting with the Prime Minister of the Republic of Kazakhstan B. Sagintaev, as well as representatives of the Committee for Trade, we agreed that we will prepare sectoral trade development program. But trade its own challenges", - said the chairman of the Board of NCE RK "Atameken" Ablay Myrzakhmetov, speaking at the forum.

Myrzakhmetov noted that small-scale producers, especially in agriculture, because of its small-scale do not actually have access to commercial networks. According to him, there are two ways to solve this problem. "There is a path that Russia chose: it is rigidly enshrined in law, that there should be 50 per cent representation of domestic producers. This is one way. Second. Do we need to subsidize and to help somehow to small and medium-sized businesses, so they can get on the shelves? And what intermediaries there are in between two? This is a range of issues that we must discuss during development of sectoral programs", - added the head of the Board of NCE.

He also touched upon the equally important issue for business - procurements. "With regard to procurement, it is very simple. The problem is that technical specifications are compiled for a particular company to win. Now, there are 15 days, during which you can openly air your view on what you do not like. Secondly, the procurement process. Qualification selection: do we need it or not? And how to support domestic producers? We believe that preliminary qualification selection should be done based on industrial certificate, which will allow through self-regulation the associations to determine who is the real manufacturer. This will be support of domestic producers. We should also allow to appeal the tender, if someone is not satisfied", - said Ablay Myrzakhmetov.

The third question, which worries Kazakhstani business, is exports. The chairman of the Board of NCE said that the issue of transfer of the functions to the National Chamber is under discussion. "We are ready in December to prepare the strategy of export development with specific roadmaps for China, Russia, Iran - nearest markets. Business now needs important markets. The state machine is a little slow and not always responds to the interests of the market", - he said.

Ablay Myrzakhmetov gave as an example the Russian export hub, thanks to the work of which the neighboring country was able to sell a large amount of their products in Kazakhstan. "We need serious tools, if we want to enter the neighboring markets at least", - he stressed.

 Moreover, according to Chairman of the Board of NCE, it is necessary to work on import substitution in Kazakhstan and to provide domestic producers with long contracts. "Our approach is very simple. Let's be honest: we need a program of import substitution by clear positions. Simple and clear: what can we do and where we have a manufacturing base. Give us long contracts of 3-5 years, maybe more. Here we need to conduct a joint audit. But in return, these manufactures need to improve quality and after 3-5 years to go for export. We need such connection. And today the Government is ready to talk this way - we have to take reciprocal obligations. Support measures are also very important for business. It is necessary to have the competence center for enterprises to train their managers in the best companies during these years. And the state should reimburse the cost of training", - he said.

 According to the Minister for Investment and Development of Kazakhstan Zhenis Kasymbek, for 9 months of the current year, the share of local content in the procurement reached 58.3%. "The total procurement of goods, works and services increased, compared to the same period of last year, to 1 trillion 596 billion tenge. Although, in comparison with the same period of last year, an intermediate rate of Kazakhstani content decreased by 77%. The main causes of decline was the weakening of the tenge exchange rate and an increase in purchase of imported raw materials", - he said.

NCE organized an annual contest for the right to use the umbrella brand "Uly Dala Eli" among businesses in order to promote the umbrella brand "Uly Dala Eli" in the countries of near and far abroad.

The awarding of the right to use the umbrella brand "Uly Dala Eli" will be awarded annually to the best domestic producers and service providers of Kazakhstan, who will promote the brand of Kazakhstan on an international scale.

Representatives of large, medium and small businesses can participate in the competition to win the nomination. According to the results, not more than three candidates will be awarded the right to use the umbrella brand "Uly Dala Eli".

 


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