ASTANA – Kazakh President Kassym-Jomart Tokayev signed the law to ratify an agreement between the Kazakh and French governments on Jan. 8, enabling the French Development Agency (AFD) Group to begin operations in Kazakhstan.
Photo credit: gov.kz
This agreement was reached following French President Emmanuel Macron’s official visit to Kazakhstan in November 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 financing and technical support.
Proparco, AFD Group’s private sector arm, will extend its support to Kazakhstan’s private sector through targeted loans to financial institutions and companies, notably in finance, energy, microfinance, and agriculture.
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.
