IFC in Kazakhstan

Kazakhstan became a member of IFC in 1993. As IFC’s largest client in Central Asia, Kazakhstan has received, as of December 2007, commitments of more than $446 million of IFC’s own funds and over $173 million in syndications. IFC’s efforts are designed to foster dynamic private sector-driven growth, particularly in the non-extractive sectors. IFC is also focusing on the development of the financial sector, support for Small and Medium Enterprises (SME), and support for the restructuring of privatized industrial enterprises.

In financial markets, IFC has played a critical role in the establishment of the first banking joint venture with an international partner, ABN-Amro Bank Kazakhstan. IFC also disbursed credit lines to Kazkommerzbank and Turan Alem Bank, the two largest private local banks. In addition, IFC has provided financial and capacity building support to NefteBank, a regional bank in Western Kazakhstan.

Going forward, IFC will continue to develop the financial sector by creating strong partnerships, supporting SMEs, and helping to strengthen and liberalize the leasing industry and housing markets. Through the Central Asian Micro and Small Enterprise Facility, IFC is providing $45 million to help increase the availability of funds for micro and small enterprises. More recently, the SEAF Central Asia Small Enterprise Fund was created to provide equity, quasi-equity, and debt financing to growth-oriented enterprises in the Central Asia region.

In the real sectors, IFC committed $3.4 million to establish the Ispat Karmet SME Resource in Temirtau to provide financing primarily to SME suppliers to Ispat Karmet, one of the largest steel manufacturing operations in the world. IFC has also committed $50 million for the expansion of Italcementi, a leading Italian cement company, in Kazakhstan. IFC has been very active in supporting smaller enterprises in the real sectors, where task teams have overseen a retail outlet, a business complex, a small hotel, and a gas storage/distribution facility. More on Investments in Kazakhstan.

Advisory Services

IFC began its advisory program in Kazakhstan in 1995, when it helped to privatize the East Kazakhstan Polymetallic Mines. Since then, advisory work has continued in the fields of steel production, oilservices, small banking, and more recently, housing finance. In recent years, IFC has been concentrating its efforts on creating favorable conditions for the growth of the leasing industry and housing finance in Kazakhstan. In addition, IFC is providing assistance to local small and medium enterprise suppliers operating in the oil and gas industry to achieve the internationally recognized ISO 9000 quality certification. More on advisory projects in Kazakhstan.