🇰🇿 Kazakhstan Creates a Trade Fund to Boost Agricultural Exports

 

Kazakhstan is strengthening its support for the agricultural sector by investing in production, processing, and exports. In 2025, the Agricultural Credit Corporation (ACC) and KazAgroFinance will allocate 1.5 trillion tenge to finance spring fieldwork, harvesting, the purchase of agricultural machinery, and the development of infrastructure.

Key Funding Areas

As part of the support for agricultural producers, special attention will be given to:

• Processing of agricultural products with a focus on socially significant food items;

• Development of irrigation systems, including sprinkler installations, irrigation structures, and drip irrigation;

• Construction of industrial greenhouses to stabilize vegetable prices;

• Creation of storage, packaging, and transportation infrastructure for agricultural products;

• Expansion of large-scale feed production.

To broaden project coverage, loan limits through ACC will increase from 7 to 15 billion tenge, while long-term projects will receive additional support through the guarantee tools of Baiterek and Damu. Simultaneously, KazAgroFinance will focus on supporting domestic agricultural machinery, ensuring a multiplier effect for both farmers and the industrial sector.

Trade Fund and Export Growth

The Baiterek holding is creating a trade fund, which will become a key instrument for supporting Kazakhstani exporters. This fund will provide financial assistance to agricultural producers, helping them enter international markets, reduce risks, and stabilize supply chains.

How It Will Work

✔️ Companies will be able to receive funding for export shipments, covering logistics and storage costs.
✔️ The fund will provide guarantees and insurance for transactions, protecting farmers from financial risks.
✔️ New supply chains will be developed, along with logistics centers to ensure uninterrupted market access.
✔️ Kazakhstan is negotiating with Malaysia and other countries to expand exports of agricultural products.
✔️ The fund will attract investment and modernize agricultural enterprises to enhance their competitiveness.

Key Export Policy Directions

• Consolidation of major producers and traders of grain, oilseeds, and legumes;

• Development of stable export supply chains and expansion into China, Central Asia, and the EU;

• Partnerships with major international buyers, such as COFCO;

• Reducing speculative price fluctuations and stabilizing the market;

• Attracting private capital to export-oriented projects.

In the long term, the trade fund may be transformed into a Food Security Fund, aimed at ensuring food security in Central Asia and the Middle East.

Export Support Instruments

The Export Credit Agency of Kazakhstan (ECA) provides support to Kazakh agricultural producers by offering:
✔️ Guarantees for export deals;
✔️ Reinsurance of export transactions;
✔️ Comprehensive financial services.

These measures will enable domestic companies to enter international markets with competitive products. ECA will collaborate with second-tier banks and financial institutions within the Baiterek group. A key condition for receiving support is compliance with localization, industrialization, and investment attraction requirements.

Key Takeaways

📌 1.5 trillion tenge allocated for agricultural sector support, covering fieldwork, machinery purchases, and infrastructure development.
📌 Baiterek’s trade fund will help exporters reduce risks and expand into international markets.
📌 Kazakhstan is strengthening its export strategy, negotiating with Malaysia, China, and the EU, and developing partnerships with major buyers.