A leader in non-sovereign financing among international banks: the EDB opens its Annual Meeting and Business Forum
Almaty, 27 June 2024. The Eurasian Development Bank’s (EDB) Annual Meeting and Business Forum commenced today at the Rixos Hotel in Almaty. The event has gathered together heads and top managers from credit institutions across Eurasian countries, multilateral development banks, government agencies, businesses, the expert community and journalists.
Olzhas Bektenov, Prime Minister of Kazakhstan, extended a welcome address to the participants, which was delivered by Dauren Kenbeil, Kazakhstan’s Deputy Minister of Finance. The address highlighted that the agenda of the Annual Meeting reflects “the most pressing challenges facing the region’s countries and covers topics such as the efficient and balanced use of water and energy in Central Asia, food security and transport connectivity.”
Olzhas Bektenov praised the role of the EDB as a multilateral development bank operating in Eurasia for over 18 years.
“The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations. It catalyses key cross-border projects in energy, infrastructure, industry, agriculture and digitalisation. At the same time, the EDB has become a leader among multilateral development banks in non-sovereign financing,” he noted.
Olzhas Bektenov wished all participants and visitors of the EDB Annual Meeting and Business Forum an engaging dialogue and productive work. He expressed confidence that the discussions and meetings would unlock the potential for enhanced interaction among Eurasian countries and private businesses to address critical issues more comprehensively.
Nikolai Podguzov, Chairman of the EDB Management Board, also welcomed the forum participants. He thanked everyone who accepted the Bank’s invitation and outlined the main challenges facing the Central Asian region, describing how the EDB is addressing these issues.
“The first question that needs to be answered is ‘what?’. What should be done to eradicate poverty, provide people with clean drinking water, increase transport connectivity across regions, implement innovations and build new transport infrastructure?” he asked.
To solve these problems, it is necessary to answer the second question of ‘how’: how to provide people with water and roads and ensure stable economic growth in countries that primarily rely on raw materials.
“Finding successful and effective answers to these questions is impossible without considering the specifics of particular places and territories. I’m sure that it is crucial to localise global, universal approaches. The term ‘glocalisation’ is appropriate here. I hope that this term and this approach to problem-solving will take root in the activities of development banks,” he said.
Nikolai Podguzov believes that the number one challenge now is ensuring rapid economic growth in Central Asia. The region’s GDP has tripled, but even this growth is insufficient compared to living standards in developed nations. To bridge this gap, industrial production in the region needs to grow by almost one and a half times.
The second challenge is transport connectivity. The situation is worse only in Siberia, some countries in Central Africa and the interior of Latin America. These constraints severely impact economic growth, as Central Asia faces trade costs that are 40% higher compared to countries with developed transport networks and access to the sea. For this reason, the EDB is promoting the concept of a Single Transport Network. Freight traffic in Central Asia could increase by 40% by connecting longitudinal routes.
“Central Asia can now become a transport hub like it was not even in the best of times for China’s Silk Road,” he added
Water, energy and food are the third interconnected challenge. “Almost 30% of the global population lives with limited access to water. The situation will only worsen in the long run, and Central Asia is no exception. A chronic water deficit may occur over the next three years. However, governments and businesses are beginning to take practical steps to address these challenges,” said Nikolai Podguzov.
To mitigate these challenges, the EDB plans to invest US $11 billion in regional and cross-border projects by 2026.
“Implementing these plans will improve people’s lives, and this is the Bank’s main goal,” he concluded.
The EDB Annual Meeting and Business Forum are taking place on 27–28 June in Almaty, Kazakhstan.
Watch the EDB Annual Meeting and Business Forum live at https://am.eabr.org/.
Additional Information:
The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
The EDB Media Centre:
+7 (727) 244 40 44, ext. 6148 and 3730
