₸43 Billion, Tax Benefits, and 58 Projects: How Kazakhstan Is Boosting Agro‑Processing

Since 2024, Kazakhstan has introduced a preferential lending mechanism for agro‑processing enterprises at a fixed interest rate of 5% annually, without relying on subsidies. These loans are exclusively allocated to replenish working capital. In 2023, ₸35 billion was allocated for this purpose, increasing to ₸43 billion in 2025. The Minister of Agriculture, Aidarbek Saparov, announced this during a Senate session, addressing questions raised by deputies on the development of deep agricultural processing. According to him, 93 applications have been submitted for such preferential loans.

In addition to financial instruments, agro‑processing companies benefit from several tax and investment incentives, including:
• 70% reduction in VAT;
• 25% investment subsidies for construction or modernization of facilities;
• Up to 40% reimbursement for building sugar factories;
• Up to 50% subsidies for deep grain processing, such as production of gluten, starch, and amino acids.

📉 Low Efficiency of State Programs Highlights Need for Reform
Senator Zakirzhan Kuziyev pointed out the low efficiency of current state support. An audit report from the Supreme Audit Chamber notes that government programs lack clear target indicators and systematic evaluation of effectiveness. This results in significant budget funds being spent without measurable impact on strategic goals like increasing processing capacity and export value addition.
“In 2024, more than ₸512 billion was allocated to develop the agricultural sector, yet production indicators are rising slowly. Processing remains weak and export structure continues to be raw‑material oriented,” the parliamentarian said.

📊 Imports Outpace Exports
Kuziyev also highlighted a structural imbalance in foreign trade: imports of processed products reached 6.5 million tonnes, while exports totaled only 5.7 million tonnes. This underscores the need to strengthen domestic agro‑processing to reduce import dependence and boost added value.

📌 Comprehensive Agro‑Processing Development Plan Approved
Minister Saparov stated that a Comprehensive Plan for the Development of Agro‑Processing was approved in June 2024, including:
• Stimulation of further growth in the processing industry;
• Implementation of 58 investment projects worth ₸176 billion, including in deep processing;
• Opening new markets and expanding existing ones;
• Streamlining support measures based on effectiveness.

📈 Focus on Performance
According to the Minister, approximately ₸400 billion is allocated annually in subsidies, with 50% channeled through farmers and financial institutions to support interest rates and financial tools. Out of more than 1,000 processing enterprises, around 200 receive subsidies, and it is this segment where effectiveness should be assessed. He noted that positive effects have already been observed in this group, and efforts will continue accordingly.