Over 200 local entrepreneurs in Almaty have received preferential loan offers.
Kazakhstan's Damu Fund Swings into Action, Boosting Almaty Businesses
The Damu Entrepreneurship Development Fund is a powerhouse when it comes to propelling businesses in Kazakhstan, and Almaty is no exception. Let's take a look at how this fund has been lending a helping hand to local businesses.
A twelve-year-old enterprise manufacturing PVC sewer pipes and window profiles is a prime example. With support from the Damu Fund, they received a sizeable loan of 300 million tenge, granted at an annual interest rate of just 6%. The funds were used to secure essential raw materials, helping the company stay afloat during the pandemic and maintaining jobs for a dedicated workforce of over a thousand employees.
Not to be outdone, a young television assembly company also got a piece of that action, snagging a loan of a whopping 600 million tenge under the "Damu Industry" program. This financial influx enabled them to procure necessary raw materials, boosting their production capacity and paving the way for impressive sales figures—from 20,000 units in the first year to a forecasted 50-55,000 units by yearend.
The fund's benevolence extends to Almaty's healthcare sector too. One of the city's largest clinics received a substantial boost, using its allocation to outfit medical institutions with cutting-edge equipment, substantially increasing their competitive edge. Averaging 8,500 tenge for a PCR test, when competitors were charging between 15-20,000 tenge, was a customer-friendly perk gained thanks to Damu's support.
With a diverse offering, the Damu Fund is not shy about providing two flavors of financial assistance: interest rate subsidies on loans from second-tier banks and loan guarantees, the latter offering coverage of up to 85% of loan amounts. This year, the fund amped up its support for larger businesses, as well as expanding its loan offerings to cover refinancing.
City-based entrepreneurs have been fondly embraced by the state's "Business Roadmap 2025" program, with 168 projects worth a staggering 59 billion tenge in loans being approved in 2020, marking a significant increase from the 120 businessmen who received preferential loans in 2019.
The Damu Fund is a vital cog in the nation's economic machine, fostering entrepreneurial spirit and driving growth in priority sectors. Its commitment toAlmaty's businesses stems from a deep understanding that SMEs are the lifeblood of economic development and job creation. Expect to see more excitement and innovation coming from Almaty as this partnership flourishes.
In the wings, additional support for Almaty businesses is on the horizon. Kazakhstan is set to launch two new guarantee funds, one specifically targeting SMEs, further enhancing the support available for local businesses. Keep your eyes peeled for growing opportunities in the region.
The Damu Fund's support for businesses hasn't been limited to the manufacturing sector, as it has extended aid to healthcare institutions as well. For instance, one of Almaty's largest clinics received substantial funds that were used to modernize medical equipment, boosting their competitive edge.
On the other hand, the finance industry isn't left out of Damu Fund's support, as of 2020, the fund approved 168 city-based business projects worth a total of 59 billion tenge in loans, signifying a substantial increase from the year before, demonstrating the fund's commitment to the business sector in Almaty.
