EDB Finances Agribusiness Infrastructure in Kazakhstan

The Eurasian Development Bank (EDB) has commenced financing another project aimed to develop agribusiness infrastructure in Kazakhstan and boost grain export. Namely, the Bank has provided 2.7 billion tenge to Kazeksportastyk Holding Company for purchasing a mill in Akmola Oblast, Kazakhstan, and modern equipment for processing grains and oilseed rape. This equipment will allow the mill to achieve its full design capacity.

This project is in line with the EDB strategy, as it supports sustainable development and economic growth by assisting Kazakhstan’s agribusiness in boosting the production and export of cereals with a higher value added, and creating new jobs.

The project also directly assists trade between Kazakhstan and Russia, since the major portion of the flour to be produced by the mill will be sold to Russian consumers.

In December 2008 the EDB provided $18.9 million for a similar project implemented by Kazeksportastyk in North Kazakhstan Oblast, aimed at boosting the export of hard wheat by developing flour production, storage facilities and export infrastructure.

Ultimately, both projects are aimed at satisfying the demand for quality Kazakh flour on external markets and making Kazakhstan a major flour exporter.

Additional information:

Kazeksportastyk Holding Company is one of the largest Kazakh grain companies founded in April 1999. In 2008 it had a turnover of $290 million and an equity capital of $182 million.