The International Financial Corporation (IFC), which is part of the World Bank engaged in stimulating the private sector in developing markets, revealed what projects it supported in the 2023 fiscal year in Kazakhstan and other Central Asian countries.
According to a statement released by IFC, it has provided $15 million to the KazFoodProducts holding controlled by Erlan Baymuratov. The holding runs different food companies, including grain processing companies, meat and confectionary producers like AsiaAgroFood and Bayan Sulu, a pastry factory. The purpose of the tranche was to facilitate the growth of the holding and create new jobs. IFC believes that this will contribute to food security in the region.
The subsidiary of the World Bank has also given $20 million to KMF, a microfinance organization. This money helped to support 247,000 micro, small and medium-sized companies, the vast majority of which are located in remote areas of Kazakhstan. In addition, IFC has invested in the construction of Big Almaty Ring Road (BAKAD). Even though the organization hasn’t revealed any details, it underlined that this project is the first case of private-public partnership in Central Asia.
Uzbekistan accounts for the biggest part of IFC investments in the region. The organization invested $1.6 billion in this country last year, a record amount for the IFC, which has been working in Uzbekistan since 1993. For instance, IFC invested $49 million in the construction of the Zarafshan wind power station. The station will enter into operation in 2025. IFC also took part in the construction of an up-to-date thermal power station in the Sirdaryo region of Uzbekistan.
In Kyrgyzstan, IFC helps the local government to organize a bid for the construction of a solar power station. The corporation is also facilitating Kyrgyz authorities in finding investors for the Manas International Airport in Bishkek. Moreover, IFC has provided Kyrgyz financial organizations with more than $35 million in order to facilitate microenterprises run by women to obtain loans and promote the construction of affordable housing in rural areas.
In Tajikistan, IFC is working with Imon International and Eskhata Вank, both of which received $15 million from the international organization. These funds were supposed to be used for lending to micro, small and medium-sized businesses. Currently, the corporation is going to focus on financing key sectors of the Central Asian economies like agro-business, financial sector, infrastructure and production.
IFC isn’t the only international organization operating in Kazakhstan and neighboring countries. In June 2023, the Caucasus, Central Asia, and Mongolia Regional Capacity Development Center (CCAMTAC) was opened in Almaty. Kursiv is preparing an interview with Norbert Funke, the director of the CCAMTAC, which will be published soon.
