2020 to be declared Year of support for domestic manufacturers
On October 10, the Atameken National Chamber of Entrepreneurs and SWF Samruk-Kazyna JSC summed up the interim results of the implementation of the Agreement on Cooperation, signed in May 2019.
The agreement provides for the possibility for local manufacturing companies to obtain long-term contracts with the Fund's companies through the procurement of the quasi-public sector.
Noting the positive results of joint work, Chairman of the Presidium of the Atameken NCE RK Timur Kulibayev stressed: "We must improve the social well-being of the population. The source should be quasi-public sector orders from the domestic manufacturer. At the same time, domestic manufacturers should take measures to increase the number of jobs and wages. Thus, the Fund can perform an important social function".
The Atameken NCE RK together with the Fund in the framework of the Project Office for Import Substitution is constantly identifying the potential for substitution of imported goods with domestic ones.
"As of today, 4 off-take agreements have been concluded for transformers and wagon retarders worth about 3.5 billion tenge. 20 more approved projects are at the signing stage, 47 projects are at the stage of discussion," Chairman of the Presidium of the Atameken NCE RK said.
Timur Kulibayev believes that the establishment of new and expansion of existing production requires a guarantee of long-term orders and off-take agreements from 5 to 7 years. At the same time, it is necessary to provide for the reciprocal obligations of the business to improve the quality of goods and increase the localization of production.
"When creating new production facilities under off-take agreements, according to the experience of the Russian Federation, we propose to assist domestic manufacturers by financing research and development, design bureau, purchase of drawings, study of world analogues by state institutions," Timur Kulibayev proposed.
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As part of the discussion of procurement issues, Timur Kulibayev also suggested using the Industrial Certificate as the main document when passing the qualification process.
The Chairman of the Atameken Presidium noted that in 2018, the volume of direct purchase of manufactured goods by the Fund amounted to about 700 billion tenge. The share of local content is about 45% or less than 300 billion tenge.
"Based on these parameters, I believe it is necessary to increase the rate of joint work and ensure the growth of local content in the medium term 2 times and bring the procurement from domestic manufacturers to 600 billion tenge" he suggested.
Timur Kulibayev also noted the importance of compliance with payment deadlines (20 calendar days) to suppliers of the Fund's companies to prevent cash shortages in domestic business.
Chairman of the Presidium of the Atameken NCE RK proposed to expand access to the procurement system of the Fund by transferring data to the Single Procurement Window, which began its work this year to ensure transparency of procurement.
Summing up the meeting, the Chairman of the Board of Samruk Kasyna Sovereign Welfare Fund Akhmetzhan Yessimov said that the year 2020 will be declared the Year of support for domestic manufacturers.
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