MONEY TO BE IMPLEMENTED, BUT THE PROGRAM REQUIRES IMPROVEMENT
During a meeting of the Government Prime Minister of the Republic of Kazakhstan BakytzhanSagintayev expressed dissatisfaction with the implementation of the Program of productive employment and mass entrepreneurship for 2017–2021 and, in particular, the failure to use microcredit funds.
According to the NCE RK Atameken, the Program shows efficiency in the regions where the "Bastau" project is being implemented, but it still needs changes.
“In particular, starting next year, the obligation to create two jobs for start-up projects will be excluded. It is assumed that this condition will remain for entrepreneurs, since the registration of which more than 3 years have passed. We understand that business should create workplaces; the Program is aimed to promote productive employment and involve the unemployed and self-employed citizens in their business. But this is determined by economic feasibility, direction and type of business,” - Baurzhan Orazgaliyev, managing director and director of the department of mass entrepreneurship and microlending of the NCE RK Atameken, said.
“The figures for tax revenues indicate that this goal is achieved and it is a priority, - Orazgaliyev notes. - Today, almost 95% of participants pay taxes, compared with last year, the amount of deductions increased by almost 30%".
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Microcrediting under the Program and, in particular, under the "Bastau" project, is carried out through the line of subsidiaries of "KazAgro" JSC - "The Fund for Financial Support of Agriculture" and "Agrarian Credit Corporation" JSC.
At the end of last year, all allocated funds were disbursed, as the National Chamber reports.
“Although, it is necessary to recognize that the disbursement of funds through "KazAgro" is proceeding at a slow pace in Atyrau and Mangystau regions. The demand for microcrediting here is significantly lower than in other regions, since the limits for funding have been set at 4-6 million tenge. These funds are not enough to start a business because of the difference in the price of equipment, building materials or livestock. This is reflected in the start-up of business projects,” - Baurzhan Ozgaliyev continues.
According to him, in the Pavlodar, Aktyubinsk, Akmola regions allocated money, on the contrary, turned out to be less than the existing real need.
“If we talk about barriers, then with financing through a credit partnership it is rather difficult for a participant to join it because of the high contribution. Banks and microfinance organizations are also not in a hurry to finance projects in cities, as this is not attractive for them because of the small loan amounts and the lack of subsidies,” - Baurzhan Orazgaliyev, managing director and director of the department for mass entrepreneurship and microlending of the NCE RK "Atameken" says.
He also emphasizes that the preference in financing is given to projects with more liquid collateral. This is aggravated by the fact that in the regions there are no current maps of regional development. Until today, no serious research has been conducted in the regions on the subject of which business projects need to be developed in a particular area.
“If the functions of the operator of microcrediting along with Fund will be carried out by MFIs with the participation of "Atameken", then access to financing will be significantly simplified for entrepreneurs. It will be carried out within the framework of one window, there will be no industry restrictions. The financing process itself will be fully synchronized with the training and further support of projects. This is an international practice, when financial organizations are actively involved in post-credit support of projects. Moreover, the National Chamber has already had experience in lending through MFIs that have been established in four regions of the country. Based on this experience, we could improve lending through the application of new technological solutions and country screening results to be conducted in each region of Kazakhstan,” - Baurzhan Orazgaliyev explains.
Last year, under the "Bastau" project, Atameken trained 15,000 unemployed and self-employed from 80 districts. Of these, 3,314 have launched or developed their business. This year, the geography of the project has expanded, covering 160 districts, 27 single-industry cities and 14 regional centers. The training plan is doubled. Currently, out of 30,000 planned for training, about 24,000 unemployed, self-employed and budding entrepreneurs have already been trained.
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