OREANDA-NEWS. February 15, 2013. The Government of Kazakhstan has approved a new sectoral program of agro-industrial complex development for 2013-2020 “Agribusiness – 2020” at a session chaired by Prime Minister Serik Akhmetov .

As Minister of Agriculture Assylzhan Mamytbekov told at the meeting, the new program places special emphasis on creation of conditions for increasing competitiveness of agribusiness entities to make the agro-industrial sector more attractive and less risky.

The Agribusiness-2020 Program aims at development of four dimensions: financial recovery, increase of affordability of products, works and services for the agro-industrial sector entities, development of the state system of agricultural producers support, improvement of efficiency of the state management system of the agro-industrial complex.

According to A.Mamytbekov, financial recovery will be conducted through restructuring, refinancing, financing of credits and projects as well as financing of agricultural manufacturers having debts. Thereat, the government can ease debt burned and avoid bankruptcy of agricultural manufacturers.

Apart from the new financing mechanisms, the program provides for such new instruments as investment subsidies, insurance and guarantees for loans of agricultural manufacturers, funding of the second-tier banks, etc. “Totally, 3 trillion 122 billion tenge is planned to be allocated for the program implementation in 2013-2020. This includes 622 billion tenge of budget funds and 300 billion tenge of bond loans and the rest funds are the funds of “KazAgro” National Holding and its subsidiaries.

Thereat, over 10 trillion tenge of investments are planned to eb attracted to the sector as well,” the Minister said. “The new agricultural program will allow to increase physical volume of production of agricultural products 1.5 times, increase the labor productivity per one employee threefold, increase export earnings by 20%.

Besides, the program will also help to ensure food sovereignty on the basic foods at the level of 80%,” A.Mamytbekov said. Chairman of the Kazakhstani Business Council of agro-industrial sector Arman Yevniyev said that the new program will provide the agribusiness with unprecedented resources and efficient instruments that would allow to counter all challenges of the upcoming period. Representatives of the second-tier banks have taken active part in development of the program and are ready to assist in its implementation, the chairman of the Association of Financiers of Kazakhstan Serik Akhanov said. CEO of “Atameken Union” National Economic Chamber Ablai Myrzakhmetov, governors of a number of regions and heads of agricultural enterprises delivered reports at the sitting as well.

“The President placed special importance to the necessity of large-scale modernization of the agricultural sector of the country. The first steps towards its modernization should be adoption of the new program. We have fulfilled this instruction of the President today. The main task now is its consistent implementation,” Prime Minister S.Akhmetov said at the meeting. He also added that new mechanisms would allow to create conditions for attraction of private investments in agriculture. Besides, development of agriculture will promote development of related industries and give multiplicative effect in whole.

The Prime Minister charged the Ministry of Agriculture jointly with the regional governors and non-governmental organizations to ensure promotion of the program’s mechanisms and opportunities, establish an interagency commission for addressing the issues emerging in course of the program implementation, etc. The regional governors were charged to provide every agricultural enterprise and every farmer with the access to the mechanisms and instruments of the program.