Nur-Sultan, Kazakhstan, October 14,
2019 — IFC, a member of the World Bank Group, is arranging a loan
worth $50 million, or roughly 19 billion Kazakh tenge, for KMF, Kazakhstan's
biggest microfinance organization, part of a push to create jobs and support
the diversification of the country’s economy.
The financing will help KMF ramp up
its lending to micro and small businesses, including those run by women
and those located in rural areas. That is considered important in a country
with limited access to loans because of a shortage of capital.
“Right now many micro and small businesses
in Kazakhstan, especially in rural areas, need easier access to credit,”
said Shalkar Zhusupov, —hairman of the Management Board of KMF. “Our partnership
with IFC will help change that, delivering finance where it's needed most
and, over the long run, helping to create jobs and combat poverty.”
The loan is part of an effort by IFC
to help diversify Kazakhstan's economy by encouraging the growth of small
business outside of the oil, gas, and minerals sectors. Extractive industries
now account for 30 percent of Kazakhstan's GDP, half of government revenues,
and three-quarters of foreign direct investment.
“Economies that rely heavily on natural
resources are vulnerable to swings in commodity prices,” said Cassandra
Colbert, IFC Regional Manager for Central Asia. “That's why it's important
for nations like Kazakhstan to broaden their economic base, and one tried
and tested way we can do that is by supporting small, local businesses.”
The loan to KMF, which will be disbursed
in local currency, includes $10 million from IFC and $40 million mobilized
from other lenders. The financing marks the continuation of a long-term
relationship between IFC and KMF.
The partnership is part of IFC’s strategy
to fight poverty and support economic growth in Kazakhstan by encouraging
the development of the country's private sector.
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 where they are needed
most. In fiscal year 2019, we delivered more than $19 billion in long-term
financing for developing countries, leveraging the power of the private
sector to end extreme poverty and boost shared prosperity. For more information,