EUROPEAN INVESTMENT BANK EXPECTED TO PROVIDE 200 MILLION EURO TO KAZAGRO
The European Investment Bank is going to provide 200 million euros to KazAgro to modernise grain storage facilities, purchase agricultural machinery and assist with the production of seeds and livestock breeding, Ambassador of Kazakhstan to the European Union, Belgium and Luxembourg Almaz Khamzayev announced March 9.
Khamzayev said KazAgro holding is working with the European Investment Bank on terms to grant the loan. It is planned the funds will be sent through subsidiaries of the agrarian holding to purchase harvesting and post-harvest equipment, modernise grain elevators, invest in seed production and cattle breeding technologies, excluding GMOs and cloning, as well as grow fruit trees, Kapital.kz reports.
“Currently, negotiations are continuing. It is expected that this credit line of EIB will be opened for a period of 15 years. In addition, it is possible that by the end of the year one more credit line will be opened and signed by one of the subsidiaries of KazAgro. This credit line will also be intended for the agricultural sector,” Khamzayev said.
The ambassador highlighted that the cooperation is important for the development of small and medium-sized businesses.
Last year, Kazakhstan and Hungary created a cooperative fund of direct investments in Kazakh agriculture. The fund was created on a parity basis: $20 million was gained from KazAgro holding and $20 million from the Eximbank of Hungary. The cooperative project became the first international investment fund in the history of Kazakh agriculture. It is expected that it will attract investment. In particular, KazAgro is negotiating with China and the U.K. to create similar mutual investment projects. It is planned that the Kazakh-Hungarian fund will attract up to $100 million to the Kazakh agricultural business.
“Agricultural business will certainly be funded in our country, and we expect the arrival of professional industrial management in our sector. We also expect the introduction of elements of corporate governance and the opening of additional markets for Kazakhstan recyclers,” said Chairman of KazAgro Nurlybek Malelov.
Business people from the Czech Republic are interested in projects and investments in the agricultural and industrial complex of Kazakhstan. In particular, the entrepreneurs are focused on the construction of agricultural farms in Kazakhstan. They intend to cooperate with Kazakh agrarians in the field of crop production, livestock and poultry breeding. Czech investors are also interested in buying mineral fertilizers in Kazakhstan.