Tokayev: “The share of local content in public procurement remains low”

We must take measures to expand the access of local businesses to both local and foreign markets, president of Kazakhstan Kassym-Jomart Tokayev said during the meeting of the National Investors Council held on May 24 in Nur Sultan.

The head of state noted that the government will provide full access to regulated procurement, the volume of which exceeds KZT 14 trillion.

“This is the money of state and quasi-state companies, which means – of taxpayers. They should be used for the development of national economy and improvement of the welfare of population. In 2015, a new Law on Public Procurement was adopted, however, the situation in this area has not improved,” said the president.

According to him, the share of local content in public procurement remains low, it is only 34%, and the government needs to take drastic measures to improve the system of public and quasi-public procurement.

“It is obvious that old approaches do not work. Perhaps, it is necessary to involve international experts who could offer modern approaches,” Mr. Tokayev said.

In his opinion, the government and NCE Atameken should actively promote the interests of local exporters.

“I instruct the government and Baiterek Holding to determine a specific list of export projects and ensure their financing as soon as possible,” said the president.

At the same time, he stressed out that 2018 was successful for Kazakhstani business. The number of operating small and medium-sized businesses increased by 11% and amounted to 1.3 million.

The volume of SMEs production increased by 14% and amounted to KZT 26.5 trillion. The share of SMEs in the economy increased over the past year from 25.6% to 28.3%.