Context
In 2015, United Nations member States agreed on the 2030 Agenda for Sustainable Development and its Sustainable Development Goals (SDGs). To achieve SDGs, States also agreed on the global framework of the Addis Ababa Action Agenda (AAAA) that aligns all domestic and international resource flows, policies and international agreements with economic, social and environmental priorities. In the AAAA, member States called for integrated national financing frameworks (INFFs) to help them strengthen planning processes and overcome existing impediments to financing sustainable development.
Successful small and medium business contribute to the building of the competitive state and to achievement of a number of sustainable development goals (i.e. SDG 8: Economic growth and decent work, SDG 10: Reduced inequality, SDG 5: Gender equality and SDG 1: No poverty).) Therefore, inclusive SME financing when individuals and businesses have access to useful and affordable financial products and services that meet their needs is important element for INFF.
The formulation of an SDG-aligned SME financing strategy for Kazakhstan will be a driving contributor to a comprehensive financing strategy for the country’s development process. Such strategy will suggest policy recommendations on enhancing and expanding financial inclusion of SME that are smaller, from less developed regions, in sectors particularly affected by COVID-19, and disproportionally led by or employing women and girls.
Economic Research Institute, JSC under the Ministry of National Economy of the Republic of Kazakhstan (ERI), within the framework of the Letter of Agreement (LoA) with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) have conducted desk and field research on the current state of SMEs financing in Kazakhstan. As a result of the work, actual examples of restrictions on access to financial resources for SMEs were identified and proposals to increase the availability of financing for the SME sector were developed. Furthermore, the study strives to explore how to systematically embed MSME financial inclusion within the frame of INFF in Kazakhstan.
Perspectives of inclusive finance will be the main topic of the national seminar: «Improving access to finance for small and medium enterprises of Kazakhstan within the framework of INFF». During the national workshop key results and findings of field research and expert consultations will be presented to a larger audience and stakeholders. The methodology and conceptual approaches have been discussed and validated during the Expert group meeting (EGM) conducted in August 23, this year.
The participants of national seminar will discuss:
- Current state of SME development and its support system in Kazakhstan;
- Availability of financial resources for SMEs in strategic government planning documents;
- Results of desk and field research on the availability of financial resources for SMEs;
- INFF capabilities and project implementation status for its implementation in Kazakhstan;
- Proposals and perspectives for improving access to financial resources for SMEs in Kazakhstan, taking account the principles of gender equality to achieve SDGs.
Objectives and expected outcomes:
Discuss with key stakeholders in government, business, international, scientific, consulting and public organizations the main needs and gaps in providing access to financial services for SMEs;
Develop and verify proposals to improve the availability of financial resources for SMEs in Kazakhstan, taking account gender and territorial specifics;
Contribute to the improvement of interaction between stakeholders on the implementation of INFF in Kazakhstan in general and the INFF element for SMEs in particular;
Raise awareness of government officials, business and the expert community about the Joint Program “Aligning Policy and Financing with SDGs towards an Integrated National Financing Framework in Kazakhstan”, funded by the Joint SDG Fund.
Participants
The expert group meeting will gather representatives from relevant government agencies, business development institutions, banks and microfinance organizations, and key experts from academia, private sector, think tanks and international organizations contributing to the promotion and financing SME sector in Kazakhstan.
