Development of local content

One of the tasks of the Kazakhstan Center for Industry and Export "QazIndustry" is aimed at the development of local content.

Quarterly events are held to collect and process information regarding purchases of goods, works and services from monitoring entities (state bodies, subsurface users of the oil and gas sector and subsurface users of uranium, system-forming enterprises, national companies and holdings and subsurface users of the mining complex).

An analysis of purchases is carried out in order to identify the goods, works and services in demand. On a regular basis, consultations/explanations of monitoring subjects are carried out on filling in reporting data, information and marketing support is provided to domestic suppliers of TRU about the needs for TRU for annual and medium-term periods, the reasons for reducing or increasing the share of local content in TRU purchases are identified, a rating is compiled for the development of local content in the regional context (leading and lagging regions), proposals and/or recommendations are developed to increase the share of local content in TRU purchases.

The analysis of the most imported and purchased goods on the domestic market is carried out. Based on the analyzed data, proposals and recommendations are developed that take into account the interests of domestic producers engaged in the manufacturing industry.

On the basis of data on purchased goods, works and services, as well as local content in them, an analysis of the participation of domestic companies in the procurement of subsurface users of the mining sector and the share of imports is carried out on an annual basis.

In turn, this work allows us to develop administrative solutions in terms of stimulating the growth of local content, and on the basis of import data – to provide information regarding the possibility of substitution for potential investors.

In general, by the end of 2020, compared to 2019, there is an increase in the total volume of purchases of goods, works and services by 35.3 billion tenge, with a decline in the share of purchases of MS by 8.3 billion tenge and a decrease in the share of MS by 13.8 %. The decrease in the share is due to the fact that the main share of imports was special equipment and spare parts for them, which are not produced in the country.

Taking into account the current situation in the world – the spread of the coronavirus pandemic, the analysis and monitoring of compliance by subsurface users with the share of local content allows domestic contractors to maintain their positions in the subsurface use market.