ASTANA – The Mazhilis, a lower house of the Kazakh Parliament, ratified an agreement between the Kazakh and French governments on Oct. 23, enabling the French Development Agency (AFD) Group to begin operations in Kazakhstan, reported the Mazhilis press service.
Photo credit: AFD_en
This agreement was reached following French President Emmanuel Macron’s official visit to Kazakhstan on Nov. 1, 2023. It outlines the legal, tax, and financial conditions under which the AFD Group will operate in Kazakhstan.
AFD will leverage its financial and technical expertise across key sectors, including health, social protection, water, sanitation, and irrigation. AFD aims to strengthen public institutions in these critical areas by providing both financing and technical support.
Proparco, AFD Group’s private sector arm, will extend its support to Kazakhstan’s private sector, particularly in finance, energy, microfinance, and agriculture, through targeted loans to financial institutions and companies.
The AFD Group is exempt from corporate income tax within the framework of its activities in Kazakhstan and is permitted to open a representative office. The AFD Group and its office will not hold the status of a bank or any other financial institution, thus exempting them from local banking regulations.
