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

3

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

8

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»

9

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

9

(!!!) 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

11

Attraction of funding from international financial organizations

International cooperation

11

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: info@fund.kz Website: http://www.damu.kz

Business Portal: http://business.gov.kz

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