Kazakhstan’s Manufacturing Boom: Investment Insights for 2025

Kazakhstan’s manufacturing sector is experiencing an investment boom that’s hard to ignore. In the first four months of 2025 alone capital investment grew by 34.3%, reaching 557 billion tenge. In 2024 the sector saw a 24.1% increase, hitting 2.1 trillion tenge overall. Its share of total national investment rose from 10.7% to 12.7%.

Several priority industries, supported under Kazakhstan’s industrialization strategy, are leading the charge:

•  Automotive production: up 2.2x, reaching 40.5 billion tenge.

•  Chemical industry: up 62%, totaling 104.4 billion tenge.

•  Oil refining: up 2.1x, to 42.7 billion tenge.

•  Metallurgy: +14%, reaching 148.6 billion tenge.

•  Food manufacturing: +26%, now 48.7 billion tenge.

Some sectors have seen explosive growth:

•  Textiles: a 19-fold jump, reaching 16.2 billion tenge.

•  Electronics and optics: up 9x, totaling 2.2 billion tenge.

While some sectors thrive, others are clearly losing investment momentum:

•  Pharmaceuticals: down 16.5% in 2025 (and -22.8% in 2024).

•  Plastics and rubber: down 45.4%, following a similar drop in 2024.

•  Furniture manufacturing: investment collapsed by 80%.

Behind this manufacturing growth is not just private capital, but a powerful state push.

According to the Development Bank of Kazakhstan (DBK), public funding reached record levels in 2024:

•  1.1 trillion tenge was allocated to 50 manufacturing projects— twice as much as in 2023.

•  Another 571 billion tenge went through the Industrial Development Fund to support SMEs.

•  Plus, 430 billion tenge was offered as loan guarantees for four large-scale projects.

All in all, 82% of DBK’s funding in 2024 was tied directly to Kazakhstan’s industrial policy.

This raises a difficult but necessary question: are we witnessing the rise of a healthy, competitive manufacturing sector — or one that lives off the state?

•  What happens when public money is withdrawn?

•  Can these sectors survive without state support?

•  Are we empowering markets — or distorting them?

For a country heavily dependent on raw materials, building a strong manufacturing base is not just a goal — it’s a necessity. A robust processing sector brings:

•  Less dependence on oil exports,

•  More stable jobs across regions,

•  Stronger supply chain resilience.

But the how is just as important as the what.

Overreliance on government subsidies can lead to temporary gains but long-term vulnerability. Real industrial growth requires markets to work — not just state spending.

To turn this investment surge into sustainable progress, the country needs to:

1. Ensure transparency in how state support is distributed.

2. Evaluate effectiveness: which sectors deliver returns, and which drain resources?

3. Spread investment geographically, beyond just 2–3 regions.

4. Focus on exports — the domestic market alone won’t drive scale.

Kazakhstan’s recent manufacturing investment boom is a rare opportunity. But without careful management, it could become a liability.

Public money can kickstart growth — but private capital must carry it forward.

The state must act as a catalyst, not a crutch.