📉 Decrease in Investments in Kazakhstan's Agro-Industrial Sector: Agricultural Production Continues to Grow Despite the Decline

 

 🔹 Investments in Kazakhstan's agro-industrial sector decreased by 19%, but agricultural production continues to grow.

 🔹 The primary source of funding comes from the businesses' own funds (77.5%), while investments from bank loans dropped by 67.3%.

 🔹 Despite the decline in investments, gross agricultural output for the first eight months of 2024 grew by 4.7%, reaching 3.2 trillion tenge.

 

Kazakhstan is witnessing a significant decline in investments in the agro-industrial sector, yet agricultural production continues to grow. According to the analytics platform Finprom.kz, from January to July 2024, the total volume of investments in agriculture, forestry, and fisheries amounted to 407 billion tenge, 17.1% less than in the same period last year. In real terms, capital investments decreased by 19.4%, with a physical volume index (PVI) of 80.6%.

 The majority of investments were directed towards crop and livestock production — 402.4 billion tenge, which is 16.6% less than the previous year. In the fisheries and fish farming sector, the decline in investments was even more significant: investments dropped by 44.7%, totaling just 4.2 billion tenge.

 

Funding Sources

 77.5% of all investments in Kazakhstan's agricultural sector came from businesses' own funds, amounting to 315.4 billion tenge. However, even here, there was a decline of 9.1% compared to the previous year. Borrowed funds accounted for 20.4% of the total volume, or 83.2 billion tenge. Capital investments financed by bank loans saw a particularly sharp drop, decreasing by 67.3%, amounting to just 8.1 billion tenge, or 2% of the total investment volume. Budget funds accounted for only 335.4 million tenge, or a modest 0.1% of the total amount.

 

Regional Differences

The Pavlodar region led in terms of capital investments in the agricultural sector, with 143.3 billion tenge. Next came the Turkestan and North Kazakhstan regions, with 63.6 billion and 50.3 billion tenge, respectively.

 

Growth in Agricultural Production

 Despite the decline in investments, Kazakhstan’s agriculture, forestry, and fisheries sectors showed growth. For the first eight months of 2024, gross production increased by 4.7%, reaching 3.2 trillion tenge. The PVI was 103.7%, confirming positive dynamics in the real sector.

 The Turkestan region once again topped the list of regions by production volume, with 444.1 billion tenge. The top five also included the Almaty (329.4 billion tenge), Akmola (290 billion tenge), North Kazakhstan (248.3 billion tenge), and Kostanay (221 billion tenge) regions.

 

Exceptions to the General Trend

Most regions of Kazakhstan recorded growth in agricultural production. The exceptions were the North Kazakhstan region, where production decreased by 5.3%, and the capital Astana, with a decline of 1.2%.

Thus, despite the significant reduction in investments, Kazakhstan’s agriculture continues to demonstrate steady growth. This highlights the importance of the sector to the country's economy and its ability to adapt even in conditions of limited funding.