KAZAKHSTAN: UPSTREAM LINKAGES PROMOTING LOCAL PROCUREMENT THROUGH CERTIFICATION AND E-GOVERNMENT

This case study examines Kazakhstan's approach to promoting local procurement in the extractives sector through a combination of demand-side preferential treatment, strict reporting requirements, and supply-side industrial development programs.

• Kazakhstan employs demand-side policies to prioritize national suppliers, specifically requiring that a national supplier be favored if their bid is within 20 per cent of a foreign bid price. The Law on Subsoil and Subsoil Use (2010) mandates the use of equipment, materials, and finished products manufactured in Kazakhstan, provided they meet technical regulations and competition requirements, and requires the involvement of Kazakhstani producers for works and services during mining operations.
• The government utilizes an e-procurement portal to centralize documentation, including tender documentation, advertisements, and results, which allows for the rapid investigation of potential procurement rule violations. Additionally, the Law on Subsoil and Subsoil Use imposes rigorous reporting obligations, requiring companies to submit annual and quarterly reports on local procurement plans, the cost of training Kazakh specialists, and infrastructure investments.
• Local status for manufacturers is determined by the issuance of a CT-KZ certificate, which is granted to goods totally manufactured or those that have undergone substantial processing within Kazakhstan. However, this certification process has faced challenges, including difficulties in auditing and verifying certificates across supply chains, concerns regarding corruption, and questions about the reliability of local content share calculations.
• The State Program of Industrial-Innovative Development of Kazakhstan for 2015–2019, managed by the Ministry of Industry and New Technology, serves as a supply-side initiative to diversify the economy. It targets priority sectors such as ferrous and non-ferrous metallurgy and the production of mining machinery. The program's goals include increasing secondary industrial production by 43 per cent by 2019 compared to 2012 levels and increasing gross value added in secondary industry by 1.4 times.

APA

Nickerson, E., & Geipel, J. (2018). KAZAKHSTAN: UPSTREAM LINKAGES PROMOTING LOCAL PROCUREMENT THROUGH CERTIFICATION AND E-GOVERNMENT. International Institute for Sustainable Development. https://www.iisd.org/sites/default/files/publications/case-study-kazakhstan-upstream-linkages.pdf

Chicago

Nickerson, Emily, and Jeff Geipel. KAZAKHSTAN: UPSTREAM LINKAGES PROMOTING LOCAL PROCUREMENT THROUGH CERTIFICATION AND E-GOVERNMENT. International Institute for Sustainable Development, 2018. https://www.iisd.org/sites/default/files/publications/case-study-kazakhstan-upstream-linkages.pdf.

Wikipedia

{{cite report |last1=Nickerson |first1=Emily |last2=Geipel |first2=Jeff |title=KAZAKHSTAN: UPSTREAM LINKAGES PROMOTING LOCAL PROCUREMENT THROUGH CERTIFICATION AND E-GOVERNMENT |publisher=International Institute for Sustainable Development |date=2018 |url=https://www.iisd.org/sites/default/files/publications/case-study-kazakhstan-upstream-linkages.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nickerson2018kazakhstan, author = {Nickerson, Emily and Geipel, Jeff}, title = {{KAZAKHSTAN: UPSTREAM LINKAGES PROMOTING LOCAL PROCUREMENT THROUGH CERTIFICATION AND E-GOVERNMENT}}, institution = {International Institute for Sustainable Development}, year = {2018}, url = {https://www.iisd.org/sites/default/files/publications/case-study-kazakhstan-upstream-linkages.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }