Advisory Projects in Kazakhstan

CURRENT PROJECTS

Azerbaijan & Central Asia Microfinance Transformation Support Project
Azerbaijan and Central Asia Primary Mortgage Market Development Project
Central Asia Corporate Governance Project
Business Plan for Operational Review and Business Plan for Kazakhstan Mortgage Company

COMPLETED PROJECTS

CURRENT PROJECTS

Azerbaijan & Central Asia Microfinance Transformation Support Project
2008 – present
Supported with funds from the Ministry of Foreign Affairs of the Netherlands and IFC

The Project is centered in Almaty and its objectives are to assist and support Micro Finance Institutions (MFIs) based in Azerbaijan, Tajikistan, the Kyrgyz Republic, and Kazakhstan. It focuses on those institutions that wish to transform their activities from being traditionally credit based to being able to provide their customers with a broader range of financial services. Normally these services would include the acceptance of deposits and could also require profiling of institutions before they are able to obtain a full banking license.
In keeping with the IFC strategy for Central Asia, which is to support competitiveness of the private sector in areas with social development aspects such as micro loans to the poor, IFC brings additionality through the Project by aiming to combine advisory services with investment funds. This leverages the effectiveness of both components in enabling MFIs to expand their outreach and services and thereby help their clients to raise their standards of living and improve their livelihoods.
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Central Asia Corporate Governance Project
www.ifc.org/cacgp
2006 – present
Supported with IFC funds

The project helps local joint stock companies and banks strengthen their corporate governance practices with a view to improving their operations and increasing their ability to attract investment and financing. In addition, the project works with policymakers to improve the regulatory framework for corporate governance and increase the region's overall investment climate and the business-enabling environment. The project covers Kazakhstan, the Kyrgyz Republic, and Tajikistan.
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The Challenge
The lack of adequate corporate governance in Central Asia is a serious stumbling block to economic growth. While Kazakhstan, for example, is generally regarded as the leading reformer in Central Asia, and has received a significant amount of foreign direct investment, the vast majority of this investment has been in the oil and gas sector, resulting in under-investment elsewhere. Improving the corporate governance practices of joint stock companies and banks in the non-oil sector will make them more attractive to investors and help to diversify the economies in Central Asia.

The IFC Approach
The project works directly with joint stock companies and banks to improve their corporate governance practices, through individual consultations for a select group of pilot companies, and seminars and workshops targeting hundreds of companies in Central Asia. The project also works closely with government officials, to provide consultations and assistance on legislative reform related to corporate governance and its enforcement. To educate future managers and policymakers, the project partners with educational institutions to help develop corporate governance-related curricula. To raise awareness among Central Asia’s population and media on corporate governance issues, the project also conducts a national public education campaign.

Achievements to Date as of July 1, 2008
• Consulted or trained more than 1,100 individuals from more than 300 companies in Kazakhstan, Tajikistan and the Kyrgyz Republic on improving corporate governance practices
• Held the first-ever training for regional educators on corporate governance in June 2008 to help develop educational curricula related to corporate governance
• Key participants in a working group that drafted annotated comments to the Kazakhstan Model Corporate Governance Code, which were officially adopted in July 2007
• Helped the Kyrgyz government to clarify director liability, shareholder rights and information disclosure in the legislation, which entered into law in June 2008
• The Kazakhstan team held the first-ever round tables on corporate governance-related legal issues that had the participation of a Kazakhstani Supreme Court judge, commercial court judges and practicing attorneys

Azerbaijan and Central Asia Primary Mortgage Market Development Project
Phase 1, 2005 – 2006, supported with funds from the State Secretariat for Economic Affairs of Switzerland (SECO)
Phase 2, 2006 – present, supported with funds from the Ministry of Economic Affairs of the Netherlands, and the State Secretariat for Economic Affairs of Switzerland (SECO)

The project focuses on improving the housing finance legislative framework in Azerbaijan and Central Asia by building institutional capacity for mortgage lending and raising mortgage awareness. By partnering with policymakers, banks, and key stakeholders in the mortgage market, the project works to increase access to affordable housing in Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan.
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Business Plan for Operational Review and Business Plan for Kazakhstan Mortgage Company
2004 - current
Funded by IFC’s Global Financial Markets Department

In addition to issues identification in the region’s existing housing systems (see Central Asia regional housing finance survey), a key strategy in IFC’s approach to housing sector growth is the establishment of primary and secondary housing finance institutions. IFC has just completed work on a strategy and business Plan for Kazakhstan Mortgage Company. The program consisted of an examination of the demand for a secondary mortgage market in Kazakhstan, a full review of the structure and operations of the existing state owned Kazakhstan Mortgage Company, and an analysis of its future potential for growth and profitability.