Kazakhstan to launch another 126 industrial projects by end of year

Kazakhstan plans to commission another 126 industrial projects by the end of 2026, bringing the total number of new production facilities launched this year to 200. To date, 74 projects have already become operational. It was announced by Vice Minister of Industry and Construction Olzhas Saparbekov during a public lecture hosted by the National Analytical Centre, El.kz reports.

New production facilities across the regions

According to the Vice Minister, all regions are creating favourable conditions for implementing new industrial projects that will strengthen the country’s manufacturing base and support long-term industrial growth.

“This year, we have planned to implement 200 projects, of which around 74 have already been commissioned. By the end of the year, we intend to complete all 200. Every region is creating the necessary conditions for these projects to form the industrial backbone required for further sectoral development,” Saparbekov said.

Prioritising domestic processors

Saparbekov emphasised that one of the key mechanisms supporting industrial development is the Law on Industrial Policy, which requires producers of base metals to prioritise domestic processing enterprises before exporting their products.

“Kazakhstan produces base metals such as aluminium, zinc, lead and copper. Lead, for example, is widely used in battery manufacturing. Domestic production already exceeds internal demand, allowing us to actively expand exports,” he noted.

Since 2024, 30 agreements have been concluded between metal producers and processing companies. Under these arrangements, exporters are permitted to sell products abroad only after meeting domestic market demand.

Government procurement supports local industry

Another important policy instrument is public procurement. The list of products reserved exclusively for domestic manufacturers has expanded from 4,850 to 5,323 items.

“During the first five months of this year, 55,000 contracts worth KZT 78.6 bln were signed. We have also concluded 205 long-term offtake agreements under the Kazakhstan content framework, along with 408 contracts involving subsoil users,” Saparbekov said.

Early signs of economic diversification

Akbobek Akhmedyarova, Director of the Economic Modelling Development Centre at the National Analytical Centre, presented research indicating structural improvements in Kazakhstan’s manufacturing sector.

“Over the past four years, manufacturing output has increased by almost 50% in absolute terms, while the annual growth rate accelerated to 13%. At the same time, import growth slowed to 3%,” she said.

According to the study, five of the nine industrial sectors analysed are recording production growth that exceeds import growth, which international practice considers one of the first indicators of economic diversification.

Akhmedyarova added that mechanical engineering and the chemical industry have increased their share within the portfolio of nine key product groups, with mechanical engineering now accounting for one-quarter of the portfolio.

“These industries produce high-technology goods with greater value added and are less vulnerable to external global shocks,” she explained.

Why consumers rarely choose locally produced cheese

Roza Tleukhan, Senior Researcher at the Centre for Public Administration and Behavioural Public Policy of the National Analytical Centre, presented the findings of a behavioural experiment conducted jointly with a major retail chain.

She noted that while Kazakhstan’s dairy products, including milk and sour cream, enjoy strong consumer demand, the situation differs for cheese.

“Nearly half of the cheese available on the market is imported, while domestically produced cheese is often placed on lower or less visible shelves,” Tleukhan explained.

The study found that 71% of consumers do not know the manufacturer of the cheese they purchase, despite more than half expressing a positive attitude towards locally produced goods.

To address these behavioural barriers, researchers introduced a series of behavioural nudges, including:

• in-store banners highlighting that Kazakh cheese ranks among the country’s top three in taste; and
• shelf dividers designed to help customers identify domestic products more easily.

According to Tleukhan, these low-cost interventions have already resulted in a noticeable increase in sales of domestically produced cheese in the stores participating in the experiment.