International Financial Corporation Restates Commitment to Kazakhstan's Strategy for Diversification
The International Finance Corporation (IFC), a private sector arm of the World Bank Group and the largest global development institution focused on the private sector in emerging markets, has been actively involved in supporting infrastructure and economic development projects in Kazakhstan. The organisation's efforts are geared towards financial inclusion, job creation, and sustainable growth.
## Key Infrastructure and Financial Inclusion Projects
One of the notable partnerships is the $5 million loan provided to the Asian Credit Fund (ACF) to expand lending for micro enterprises, especially in rural areas, focusing on agricultural borrowers and women-owned businesses. This strategic partnership aims to foster financial inclusion, create jobs, and enhance economic resilience in rural communities, contributing to inclusive economic growth.
Another significant partnership is with Arnur Credit, where IFC has collaborated to expand access to finance for micro and small entrepreneurs, particularly women-run businesses. This partnership supports gender equality and economic resilience by providing essential financial services to underserved groups, promoting entrepreneurship, and generating jobs.
IFC also supports strategies for economic diversification in Kazakhstan, including participation in infrastructure projects and investments that drive sustainable economic growth.
## Economic Growth and Diversification Contributions
Financial inclusion, a crucial aspect of economic growth, has been significantly bolstered by IFC's partnerships with ACF and Arnur Credit. These partnerships have expanded access to finance, which is essential for the growth of micro and small enterprises, including those in rural areas.
By supporting these businesses, IFC's projects contribute to job creation and enhance the economic resilience of rural communities. The focus on supporting diverse sectors such as agriculture and women-led businesses helps in diversifying the Kazakh economy, reducing dependence on traditional sectors, and promoting sustainable development.
## Infrastructure and Economic Development Milestones
In addition to these partnerships, IFC provided $222.2 million in financing to the modernization of Almaty International Airport, a flagship infrastructure project in Kazakhstan. The Big Almaty Ring Road (BAKAD), a 66-kilometer highway around Almaty, Kazakhstan's largest city, is the country's largest public-private partnership (PPP) to date. Built to clear Almaty's city roads from transportation traffic, improve road safety, and enhance transport services, BAKAD is a testament to IFC's commitment to Kazakhstan's infrastructure development.
Over more than two decades, IFC has invested over $2.6 billion in Kazakhstan, supporting over 60 projects. The Almaty airport project, led by Turkiye's TAV Airports, was supported by loans from the IFC, the European Bank for Reconstruction and Development (EBRD), the Eurasian Development Bank (EDB), and DEG, a German development finance organization.
Wiebke Schloemer, the regional director for Türkiye and Central Asia at the IFC, highlights the importance of job creation as a broader development challenge facing Kazakhstan and many countries worldwide. She emphasizes the need to accelerate the green transition in Kazakhstan, focusing on renewable energy, improving water management, and energy efficiency. Schloemer also discusses the potential of the transport and transit sector in Kazakhstan, noting its critical role in international trade.
In fiscal year 2024, IFC committed an all-time high $56 billion to support private sector development in developing countries, of which $1.04 billion was allocated to Central Asia. Schloemer expresses optimism about the potential of public-private partnerships (PPPs) to drive sustainable development in Kazakhstan, particularly in sectors like energy and water. She also stresses the importance of well-structured projects, particularly PPPs, in attracting foreign and domestic investors.
In conclusion, IFC's projects in Kazakhstan play a significant role in promoting inclusive economic growth, fostering financial inclusion, and contributing to the nation's economic diversification and resilience. The organisation's focus on job creation, sustainable development, and the green transition is paving the way for a more prosperous and sustainable future for Kazakhstan.
Investments made by the International Finance Corporation (IFC) in Kazakhstan, such as the $5 million loan to the Asian Credit Fund (ACF) and the partnership with Arnur Credit, are integral to the development of the local business landscape, particularly in supporting financial inclusion for micro and small enterprises, including rural areas and women-led businesses. The IFC's investments in infrastructure projects, like the modernization of Almaty International Airport and the Big Almaty Ring Road (BAKAD), demonstrate their commitment to Kazakhstan's economic growth and diversification, further bolstering the nation's business and investment climate.
