New Opportunities for Digitalization: Subsidies for Communication Services for Agricultural and Industrial Enterprises

The Ministry of Digital Development of the Republic of Kazakhstan has approved new rules for subsidizing communication services for agricultural and industrial facilities. The order, which came into effect on September 3, 2024, is aimed at actively promoting the adoption of digital technologies in key sectors of the country's economy. This important decision will help businesses, especially those located outside populated areas, utilize modern digital solutions and improve their efficiency.

The subsidization will cover access to Internet services with speeds of 8 Mbps and above. The main beneficiaries of the subsidies will be agricultural producers and industrial enterprises registered in Kazakhstan. However, to qualify for the subsidies, businesses must meet several criteria: they must be small or micro-enterprises, have active operations with tax contributions over the past six months, and not be under arrest or in bankruptcy.

Applications for participation in the subsidy program are accepted through the GISS web portal from September 1 to 30 of the current year. To apply, entities select from a list of digital solutions that they plan to implement on their facilities at their own expense. These may include installation work, service maintenance, subscription fees, as well as costs for acquiring intellectual or automated systems.

After the application is submitted, the authorized body reviews it within three working days and conducts a competition to select a telecommunications operator to provide services in a specific area. The contract for the subsidization of communication services is concluded within 10 working days after the announcement of the competition winner, but no later than December 31 of the current year.

The subsidies are granted for a period of one year, with the number of beneficiaries limited by the amount of budget funds allocated for the current year. Payments are made directly to the telecommunications operators that provide services to the entities. The cost of services is determined by the authorized body based on commercial offers submitted by the operators.

The introduction of these rules is aimed at supporting agricultural and industrial enterprises in their digitalization efforts. This will enable access to modern technologies even in the most remote regions, contributing to sustainable development and increasing the productivity of enterprises that play a key role in Kazakhstan's economy.