Development Bank of Kazakhstan to support investment projects in agriculture

The Development Bank of Kazakhstan (DBK) has launched a new program aimed at supporting investment projects in the agricultural complex and food industry for 2024-2029. The total amount of financing is about $1 billion. Under the program, applicants will be able to obtain loans starting from $6.3 million for periods ranging from 5 to 20 years. The program does not specify any upper limits for funding.

According to a statement by the development institution, the program aims to promote «agricultural product processing, replace imports and expand exports.» The bank has already approved two projects related to the development of a poultry plant and the modernization of an oil mill. Moreover, the DBK is reviewing several other projects such as grain and corn processing, poultry production, the construction of a greenhouse complex and the expansion of a confectionery.

The program was developed in response to President Kassym-Jomart Tokayev’s address to the nation on September 1, 2023, and is intended to meet the cabinet’s plan for promoting economic growth. In his speech, the president set a goal of processing at least 70% of agricultural products produced domestically. As a result, the DBK is currently seeking projects eligible for financing by the development institution in conjunction with Kazakhstani and international commercial banks.

In April, the Eurasian Development Bank reported that Kazakhstan’s export of agricultural products grew fivefold from 2018 to 2023, reaching $6 billion. The rest of the Eurasian region has also reported positive dynamics in the farm sector. For instance, Russia reported a twofold increase in agricultural exports over the same five years ($45 billion).