SME support programs
in Kazakhstan: experience
of “Damu” Fund
2018
Criteria of business entities
Micro – up to 15 employees or revenue up to $220 000
Small – up to 100 employees or revenue up to $2 200 000
Medium – up to 250 employees or revenue up to $22 000 000
Large – over 250 employees or revenue over $22 000 000
1 187 000 operating SMEs
3 167 000 people are occupied in SME
$60 000 mln SME annual output
$15 750 mln SME loan portfolio
SMEs in Kazakhstan
2
32,2
72,7
МСБ Другие
96,1
3,9
МСБ Другие
35,9
64,1
МСБ Другие
26,8
73,2
МСБ Другие
Amount of SMEs (%) Employment (%) Contribution to GDP (%) STB credits (%)
SME Other SME Other SME Other SME Other
Sole shareholder:
"National Managing Holding "Baiterek" JSC
18 Centers of Entrepreneur Service (in regional centers, Astana, Almaty, Semey, Turkestan cities)
14 Mobile centers of Entrepreneur service in regions
Established in 1997 based on the Decree of the Government
of the Republic of Kazakhstan
MISSION:
Presented in all regions of Kazakhstan
Active role in the sustainable development of micro, small and medium-sized enterprises in Kazakhstan, through the implementation of integrated and effective support tools
“Damu” Entrepreneurship
development fund” JSC
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What support do we offer?
Financing through
conditional placement
of funds
Interest rate subsidizing
Loan guarantee Education and
consultation support
4
1
3
2
4
For SMEs in manufacturing
6,0%
$5,5 Million
AMOUNT OF CREDIT UP TO
RATE OF CREDIT
For SMEs in the regions
8,5%
$600 Thousand
For SMEs of all sectors
14% $1,6
Million
35,1 thousand
projects supported
Loan amount
$4950 million
Results of SME financial support programs Conditional placement of funds in second-tier banks
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AMOUNT OF CREDIT UP TO AMOUNT OF CREDIT UP TO
RATE OF CREDIT RATE OF CREDIT
Leading regions:
Almaty, Astana
Karaganda reg.,
Kostanay reg.,
Pavlodar reg.
Sectoral structure:
40% - manufacturing
projects
32% - wholesale &
retail projects
The state pays up to
from interest rate on
loan / leasing
Out max.
interest rate of
10%
19%
$13,5 Million
AMOUNT OF CREDIT UP TO
3 years
6 years
Term of subsidy
With
prolongation
Results of SME financial support programs: Interest rate subsidizing
6
11,3 thousand
projects supported
Loan amount
$6300 million
Leading regions:
Almaty
South Kazakhstan
reg., Almaty reg..
Sectoral structure:
50% - manufacturing
projects
14% - transport and
warehousing projects
For starting entrepreneurs
85%
$60 AMOUNT OF CREDIT UP TO
GUARANTEES
UP TO
For businesses in priority sectors
of economy
50%
$1,1 Million
AMOUNT OF CREDIT UP TO
GUARANTEES
UP TO
For businesses
in the manufacturing industry
20%
$5,5 Million
AMOUNT OF CREDIT UP TO
GUARANTEES
UP TO
Results of SME financial support programs Loan guaranteeing
7
Thousand
3,6 thousand
projects supported
Loan amount $390
million
Leading regions:
Astana
Kostanay reg., East
Kazakhstan reg.
Sectoral structure:
40% - manufacturing
projects
14% - transport and
warehousing projects
Start-up Business Support
(“Start-up Academy”project, «Support for the opening of a
new business», «Support for student youth»)
Entrepreneurship support and
development among individuals with
disabilities (“Damu-Komek” project, “Development of entrepreneurship
skills of women with disabilities” Program)
Creating conditions for the quality
development of domestic
entrepreneurship (consultations of the population in ESCs and MCESs)
• 4 384 people trained
• 455 private businesses established
•2 236 participants
•287 thousand customers (ESCs– 241 thousand customers, MCESs– 46 thousand customers)
•455 thousand services (ESCs– 389 thousand services, MCESs– 66 thousand services)
Support and increase of competitiveness
of the existing business (support project of existing business “Asyldar”
•15 companies pass diagnosis within “Asyldar” project
Results of non-financial support
programs
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Me
ch
an
ism
PROFILE IN THE
PERSONAL OFFICE
SOCIAL NETWORKS
PREFERENCES ON THE
SITE
PREPARING PROFILE OF
THE ENTREPRENEUR
PERSONAL OFFER
FOR AVAILABLE
PRODUCTS
Automation of state service on receiving loan guarantee instrument by integration with portal of State services EGOV.KZ
Financial supermarket «Digital Damu»
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In the long run – automation of obtaining the state services on a subsidy instrument
Increase of speed of obtaining guarantees by reducing the paperwork
Transparency of obtaining a guarantee through online tracking of the application
The first state services on financial support of SMEs Apr 2016 – Jan 2018: 644 applications approved
FOR FUND:
• Transparency
• Customer satisfaction
FOR BANK:
• Expansion of the sales
funnel
• Package of documents
FOR CLIENT:
• Speed of submission of documents
• Targeted offers
• Monitoring application online Be
ne
fits
New initiatives: Automation of services
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(!!!) 1st stage of the program was launched (tracking and monitoring the process of interaction with the client online)
Lending of micro and small businesses
through microfinancial organizations (funded by “Damu”)
Since 2016
468 projects, loan amount $2,6 mln
Program for the Development of Productive
Employment and Mass Entrepreneurship
Since 2017
470 projects worth $15,1 mln
Lending of micro and small businesses through microfinancial organizations
(funded by EBRD)
Since 2016
9 405 projects worth $14,5 mln.
Involvement of investors and
technical partners
Starting from 2018
Increase the coverage of SMEs by financial programs of the Fund
New initiatives: Microfinancing
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Total funding:
$700 mln
Total funding:
$202 mln
Total funding:
$3 mln
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Attraction of funding from international financial organizations
International cooperation
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Lending programs:
• Islamic financing
• Financing small and medium-sized projects in PPPs
• Financing of transactions for the acquisition of intellectual property
• Lending to a new economy: e-commerce, digital platforms and ecosystems
Other products:
•Crowdfunding / Crowdinvesting
• Loan portfolio guarantee
New initiatives: Expansion of product line
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THANK YOU FOR YOUR
ATTENTION!
Head office: 111 Gogol Str., Almaty 050004 Tel: +7 (727) 244-55-66, 244-55-77
Call-Center: 1408 Fax: +7 (727) 278 07 76
E-mail: [email protected] Website: http://www.damu.kz
Business Portal: http://business.gov.kz
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