Kazakhstan, Almaty, June 19, 2018—IFC,
a member of the World Bank Group, is investing $25 million in KazFoodProducts
LLP, a leading Kazakh food processing group of companies operating
in grain milling and confectionary sectors, to support the company’s expansion
plans and boost Kazakhstan's agricultural sector, helping to diversify
its economy while enhancing global food security.
KazFoodProducts processes and distributes flour, wheat gluten, starch,
animal feed and confectionery. IFC’s financing will help the company diversify
its product line and expand its packaged food business. The project is
expected to create about 500 jobs, contribute to farmers and retailers
through the company’s supply chain, while applying IFC’s high environmental
and social standards.
“IFC’s funding is crucial for us to be able to grow our business, improve
the efficiency of our operations, and contribute to the development of
Kazakhstan’s agricultural sector. We consider this engagement an important
milestone in our strategic vision to becoming a regional agribusiness champion,”
said Alikhan Talgatbek, CEO of KazFoodProducts.
Kazakhstan is a major producer and exporter of wheat and flour, responsible
for about 4 percent of the global traded volume. The country has the potential
to further increase its grain production and play a bigger role in regional
food security, especially in neighboring grain-deficit Afghanistan and
Tajikistan. With wheat already one of the country’s leading non-oil and
gas exports, expanding wheat exports would also substantially diversify
“Agribusiness in Kazakhstan has enormous untapped potential since the
country has a very large area of arable land,” said Georgina Baker, IFC
Vice President for Latin America and the Caribbean, Europe, and Central
Asia. “Unleashing that potential will help increase exports and create
jobs, including in frontier regions of Kazakhstan with higher poverty rates
and limited employment opportunities.”
In addition to financing, IFC’s advisory services will help KazFoodProducts
pursue sustainable development by improving food safety and environmental
and social standards. IFC will also help the company raise corporate governance
and increase operational standards.
KazFoodProducts is one of the largest food processing groups in
Kazakhstan. It operates through three main subsidiaries: AsiaAgroFood,
a joint stock company, operating in grain milling and the country’s largest
producer of flour, glucose syrup and animal feeds; Bayan Sulu, also a joint
stock company, the country’s largest producer and exporter of confectionery;
and BioOperations, an LLP and the country’s only plant for the deep wheat
processing of starch, wheat gluten, flour, bioethanol, and animal food.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org.