NUR-SULTAN – The World Bank Executive Board has approved a $500 million loan to Kazakhstan to develop farming as part of the Sustainable Livestock Development Program meant to support sustainable, inclusive and competitive beef production in Kazakhstan.
The funds, which will be disbursed based on the achievement of specific program results, will be used to support the nation’s state agriculture development program in improving veterinary services and animal registration systems, expand farmer-oriented service delivery and enhance agri-environmental policies over the next five years.
In the next five years, the program is expected to increase state spending on sustainable beef production and processing by ten percent and increase beef export value three-fold. In addition, around 20,000 small and medium farmers will be connected to export value chains.
“We are very glad to support Kazakhstan in developing its high-value export-oriented beef production sector,” said World Bank’s Country Manager for Kazakhstan Jean-Francois Marteau, noting Kazakhstan’s vast natural and grassland resources as well as a favorable geographic location that links the country to some of the world’s biggest export markets.
“These can be utilized to benefit Kazakhstan’s long-term economic development goals, namely, diversification of exports and improving rural livelihoods. The program is particularly important in the wake of COVID-19, which is affecting employment countrywide,” said Marteau.
Kazakhstan’s development goals can also benefit from its farming, which accounts for 45 percent of the country’s total agriculture output, through the “mobilization of significant investments from domestic and foreign agribusiness firms and expansion of production by small and medium farmers.”
The program is also expected to attract private investments into meat processing, packaging, and logistics companies.
“The program will promote green growth and sustainability policies aimed at promoting climate-smart practices for beef cattle production, reducing greenhouse gas emissions and improving the overall agri-environmental outcome of the government’s beef sector support programs,” said World Bank press service in a statement.
The signing of the agreement is slated for this fall.