SME Road Map to provide GDP growth

23 December 2016 13:05 (UTC+04:00)

By Nigar Abbasova

Azerbaijan intends to achieve a significant GDP growth by 2020 through the implementation of measures envisaged in the Strategic Road Map for the manufacture of small and medium entrepreneurship-level consumer goods in the country.

The country plans to create more than 34,000 new jobs and ensure the GDP growth by 1.26 billion manats until 2020. The Road Map comprises short-term (until 2020), medium-term (until 2025) and long-term measures (post 2025) to be implemented in the sphere. Investments worth over 700 million manats ($398.2 million) will be required to implement measures envisaged in the document, while a lion’s share of the sum is planned to be used for the creation of industrial zones and clusters.

The centralized agency of small and medium businesses is expected to make 200 million manats ($113.7 million) of GDP. Under the document the institution is expected to be established in 2017. The agency will allow SME subjects to efficiently use services provided by the government. Some 10 million manats ($5.68 million) will be required to set up the agency.

Another 475 million manats ($270.2 million) will be ensured through the creation of small and medium business industrial zones and clusters. A growth of 450 million manats ($256.04) is expected to come through solving the bankruptcy issues. The expansion of financial services for SMEs’ international trade operations and the encouragement of foreign direct investments will account for a growth of 55 million manats ($31.2 million). Some 45 million manats ($25.6 million) will be ensured through creating export associations in various sectors and 35 million manats through the development of business incubators and start-ups.

Financing of SME in Azerbaijan is carried out by a number of organizations, including the National Fund for Entrepreneurship Support, State Agency for Agricultural Credit, banks and non-bank credit organizations.

Moreover, a number of international financing organizations such as the Black Sea Trade and Development Bank (BSTDB), the European Bank for Reconstruction and Development and the International Finance Cooperation allocate credits for the support of small and medium entrepreneurship in the country.  

The strategic road maps cover almost all sectors of the economy, including, development of the oil and gas industry, the manufacture and processing of agricultural products, the manufacture  of small and medium entrepreneurship-level consumer goods, development of heavy industry and machinery, tourism, logistics and trade, vocational education and training, financial services, communication and information technologies and utilities.

The Strategic Road Maps will require some 27 billion manats ($15.4 billion) to be implemented, while the sum will be provided through the state and private sources.

--

Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz