Over two hundred entrepreneurs in Almaty have been given preferential loans.
Unleashing Business Growth in Almaty:
Businesses in Almaty are thriving, thanks to the supportive hand of the Damu Entrepreneurship Development Fund. In 2020 alone, the fund doled out around 200 billion tenge in subsidized interest rates to businesses in the city, according to Almaty.tv reports.
A local enterprise specializing in PVC sewage pipes and window profiles has been around for 12 years. Producing over 30,000 tons of goods annually and employing over a thousand individuals, this plant has seen the benefits of Damu's support. The enterprise received a loan of 300 million tenge at an interest rate of 6% per annum, which was put towards the purchase of essential raw materials. This aid not only enabled the plant to carry on operations during the pandemic but also helped maintain jobs for its employees, as shared by the plant's general director, Engin Shimshik.
A young television assembly company also reaped the benefits of Damu's support, securing a preferential loan of 600 million tenge under the Damu Industry program. The funds were utilized to acquire the necessary raw materials, thereby increasing their production capacity. The company has already sold 30,000 televisions this year, with a target of 50-55,000 units by the end of the year.
Damu's support extended to one of the city's largest clinics as well. The funds were used to purchase advanced medical equipment, including MRI, CT, linear accelerators for cancer treatment, and angiography equipment. The equipment not only improved the clinic's services but also made them more competitive in the market, as noted by the head of the clinic network, Kuanyush Kerimkulov.
The Damu Fund offers two main types of financial support to businesses: interest rate subsidies on loans from second-tier banks and loan guarantees for entrepreneurs lacking sufficient collateral. This year, the program has extended its support to large businesses and offers credits for refinancing apart from new credits for investments and working capital.
In the state program "Business Roadmap 2025", 168 projects have been approved for city entrepreneurs, amounting to 59 billion tenge in loans. This marks a significant increase from the 120 businessmen who received preferential loans last year.
The Damu Fund's approach aims to provide access to low-cost capital, particularly targeting priority sectors and fostering partnerships with financial institutions. Moreover, electronic procurement portals ensure transparency for suppliers, while co-financing and syndicated loans broaden the scale of available capital. However, specific metrics, such as loan volumes and beneficiary counts, remain unspecified in available reports.
- The Damu Fund offered a preferential loan of 300 million tenge to a local PVC sewage pipes and window profiles enterprise, which they used to purchase essential raw materials and maintain over a thousand jobs.
- A young television assembly company in Almaty received a loan of 600 million tenge from the Damu Fund under the Damu Industry program, using the funds to acquire necessary raw materials and increase their production capacity.
- The Damu Fund provides financial support to businesses in the form of interest rate subsidies on loans from second-tier banks and loan guarantees for entrepreneurs lacking sufficient collateral.
- In the state program "Business Roadmap 2025", 168 projects have been approved for city entrepreneurs, amounting to 59 billion tenge in loans, a significant increase from the 120 businessmen who received preferential loans last year.
