EBRD offers fresh funds to promote green investment in Kazakhstan
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The European Bank for Reconstruction and Development (EBRD), which became fully aligned with the Paris Agreement at the start of 2023, is helping Kazakhstan to reduce energy consumption, promote the use of renewable energy sources and support local businesses in adopting environmentally friendly practices, ebrd.com reports.
Hundreds of companies and thousands of households across the country will be able to modernise production, increase their energy efficiency and improve their climate resilience thanks to a new financing facility launched by the EBRD today.
The Bank is providing funds of up to US$ 150 million (in KZT equivalent) to participating financial institutions under the Kazakhstan Green Economy Financing Facility II (GEFF Kazakhstan II) for on-lending to individuals, private-sector companies and small and medium-sized businesses across the country.
The facility will also offer financing to vendors and producers of high-performing green goods and equipment, including those covered by the online Green Technology Selector, available on the GEFF Kazakhstan II website.
Supported by the Climate Investment Funds (CIF), GEFF Kazakhstan II will also promote the development of local markets for green technologies and equipment, which will contribute to the growth of the green economy, make green technologies more affordable and create new job opportunities. It will facilitate investment in climate change mitigation and adaptation projects, advance the circular economy, and promote the decarbonisation and competitiveness of the Kazakh economy.
GEFF Kazakhstan II also incorporates the EBRD’s Gender SMART approach, promoting equality of opportunity and the increased role of women in Kazakhstan’s economy. Participating financial institutions will take on board a new investment culture driven by gender equality and offer gender-sensitive financial products.
GEFF Kazakhstan II builds on the GEFF Kazakhstan pilot, which has been in place since 2020, supported by the Government of Austria and the Global Environment Facility (GEF). Since its inception, the project has attracted more than 1,500 clients and channelled over US$ 30 million into energy- and resource-efficiency projects around the country.
It also has helped to reduce annual CO2 emissions by more than 200,000 tonnes and achieve primary energy savings of more than 573,000 MWh. The funds were provided through Bank CenterCredit, Shinhan Bank and KMF, a microfinance organisation. More than 60 per cent of these projects involved women-led businesses and were in rural areas.
With more than €10 billion invested in the country to date through 304 projects, Kazakhstan is the EBRD’s largest and longest-running banking operation in Central Asia.
Source: kazinform
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Kazakhstan and Rwanda discussed opportunities for trade, economic and investment cooperation
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On the sidelines of the Astana International Forum, Vice Minister of Trade and Integration of the Republic of Kazakhstan Kairat Torebayev met with Minister of Finance and Economic Planning of the Republic of Rwanda Uzziel Ndagijimana, press service of the Ministry of Trade and Integration reports.
As the Vice Minister noted, both states have no access to the sea, while they have a huge transit potential. African countries represent a huge consumer market of 1.3 billion people. In turn, Kazakhstan is geographically well located and can provide access to the markets of Central Asia and China.
Kazakhstan attaches great importance to the development of trade and economic cooperation with African countries. This year we are celebrating the 10th anniversary of our interaction with the African Union as an observer. Despite the small volumes of mutual trade, Kazakhstan and Rwanda have something to offer each other", - Kairat Torebayev said during the talks.
For his part, Uzziel Ndagijimana spoke about the import and export opportunities of the Republic of Rwanda, and also presented options for trade and economic cooperation. In particular, Rwanda is interested in the development of startups, the electronic industry, geological exploration, medical and educational projects, strategic investments, the supply of vaccines and some types of minerals. For business, the Government of the African continent is ready to provide special conditions. As an example, Uzziel Ndagijimana cited the implementation of a unique startup in the field of logistics and delivery of blood and medicines Zipline in Rwanda.
At the end of the meeting, he highly appreciated the level of organization of the Astana International Forum and wished further success.
Diplomatic relations between the Republic of Kazakhstan and the Republic of Rwanda were established on May 10, 2012.
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Kazakhstan and Russia implement more than 100 projects of industrial cooperation for $22 billion - Alikhan Smailov
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On the margins of the Eurasian Intergovernmental Council in Sochi (Russia), Prime Minister of Kazakhstan Alikhan Smailov and Russian Prime Minister Mikhail Mishustin met, primeminister.kz reports.
The parties discussed issues of trade and economic cooperation, investment cooperation, industrial cooperation, development of promising transport corridors and logistics infrastructure, implementation of joint projects in energy, education and cultural and humanitarian spheres.
The Prime Minister has underlined that the active political dialogue between leaders of two countries provides high dynamics on all spectrum of the Kazakhstan-Russian cooperation. At the same time the main task of the governments of Kazakhstan and Russia is the full implementation of agreements at the highest level.
As Alikhan Smailov noted, Russia is Kazakhstan's main trade and economic partner. Last year's trade turnover increased by 6%. At the same time, based on the results of the first quarter of this year, the mutual trade has increased by another 10%.
We look forward to developing this positive trend," the Head of Government said.
He also outlined a high level of investment cooperation between the countries. So, the accumulated volume of direct investment from Russia to Kazakhstan over the past 17 years has reached about $20 billion. In turn, Kazakhstan's investment in Russia amounted to about $6 billion.
According to Alikhan Smailov, such dynamics became possible, including through industrial cooperation. In particular, leading Russian companies such as Eurochem, Lukoil, EFKO, Tatneft and others are already successfully operating in Kazakhstan.
Kazakhstan and Russian companies are already ready to implement new innovative industrial projects. This is evidenced by a program of joint actions signed last year, which includes cooperation on 29 projects worth about $9 billion with the creation of about 12.5 thousand jobs. And in general we have more than 100 industrial cooperation projects to the total amount of $22 billion, and dozens of new projects are added every year," Prime Minister said.
For his part, Mikhail Mishustin noted that relations between Russia and Kazakhstan are based on centuries-old traditions of friendship and are aimed at developing national economies and improving the well-being of citizens of the two countries.
Cooperation with Kazakhstan is of particular importance to us, I would say, is an unconditional priority. Our trade and economic cooperation is developing successfully. Last year, mutual trade turnover reached a record level. It is important now to accelerate the creation of new production chains in industry, mechanical engineering, energy, and transport infrastructure. A good basis for this is created by the mutual complementarity of economic, production, and technological potentials of Russia and Kazakhstan," Mikhail Mishustin said.
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Support for producers of demanded foodstuffs will be strengthened in Kazakhstan to reduce the level of inflation
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The issues of price stabilization for socially important food products (SIFP) were discussed at the Republican Headquarters in the Digital Office of the Government under the chairmanship of Prime Minister of the Republic of Kazakhstan Alikhan Smailov, press service of the Ministry of Trade and Integration reports.
As noted by First Vice Minister of Trade and Integration Arman Shakkaliyev, the increase in prices for SIFP since the beginning of the year amounted to 4.2%, and by the end of May - 0.7%. Astana (6.1%), East Kazakhstan region (5.3%) and Zhetisu region (5.3%) became the anti-leaders for this indicator this year. Most of all, onions, cabbage, rice and carrots have risen in price, while there is a decrease in prices for buckwheat, sugar, sunflower oil and flour.
The Ministry of Trade and Integration of the Republic of Kazakhstan has developed a new approach to reduce the inflation rate by 2 times, aimed at supporting producers of food products that make the greatest contribution to the growth of prices for SIFP. This includes beef, sunflower and butter, rice, sugar and vegetables. To date, 78 major manufacturers have been identified. The new algorithm will provide a focused approach to each product - from production and storage to sale.
Support measures will differ based on the specifics of production and current problematic issues of enterprises. Prices for the vegetable group of goods will be regulated by the conclusion of Social and entrepreneurial corporations forward contracts. At the same time, all work is planned to be carried out through a special information system that will cover the activities of regional Socio-entrepreneurial corporations, Food Corporations and their partners. This product traceability system will become an "Corporations " and their partners. This product traceability system will become an "electronic mirror" of price stabilization work.
Vice Minister of Agriculture Yerbol Taszhurekov said that the security of the domestic market for 29 main types of foodstuffs due to domestic production is 80% or more. The issue of import substitution will be solved comprehensively through the implementation of more than 900 investment projects in the agricultural sector until 2026 for a total amount of 2.8 trillion tenge. In particular, 270 projects worth 241 billion tenge were implemented in 2022, and another 291 projects worth 536 billion tenge are planned to be launched in 2023.
According to the operational data of the regions as of June 2, the republic has reserves of SIFP in the amount of 589 thousand tons, including more than 104.3 thousand tons of potatoes, 20.9 thousand tons of onions, 25.1 thousand tons of carrots and 28.8 thousand tons of cabbage. At the same time, from June to July, it is planned to harvest 218.3 thousand tons of early potatoes, 161.2 thousand tons of early onions and 30.3 thousand tons of early carrots. 96 thousand tons of cabbage have been harvested in the Turkestan region at the moment, the plan for June is 59.4 thousand tons, for July - 25.9 thousand tons. These volumes of early-ripening vegetables are sufficient to meet the internal needs.
Deputy Chairman of the Agency for Protection and Development of Competition Bolat Sambetov reported on antitrust response measures. In particular, 15 investigations have been appointed in relation to food markets since the beginning of the year, more than 150 acts of antimonopoly supervision have been registered.
Akims of Astana Zhenis Kassymbek, East Kazakhstan region Danial Akhmetov and Zhetisu region Beibit Isabayev also made reports on the measures taken.
The Prime Minister stressed that in general, in May alone, cabbage rose in price by 22.3%, carrots - 10.8%, onions - 9.6%, potatoes - 6.6%, which indicates inefficient work on the ground to provide the market with vegetables in the off-season.
The government has reviewed all price stabilization mechanisms, made appropriate changes to industry rules and legislation. All this organizational work is carried out jointly with akimats. At the same time, one of the factors of price growth is the lack of contracting in the regions", - Alikhan Smailov said.
He also noted the weak coordination on the part of the Ministry of Agriculture.
For price stability, the market must be constantly provided with sufficient supply. For example, the Ministries of Trade, Agriculture and akimats in February-March began to work with Tajikistan on the purchase of onions. However, it was purchased only in May, when the price for it increased by almost 10%. The moment of purchase of goods at an acceptable price was missed. Each region, knowing its specifics, should conclude contracts with producers in advance,- the Prime Minister stressed.
The Head of Government instructed to ensure the full implementation of the new algorithm for restraining prices for SIFP and the timely conclusion of contracts with agricultural producers, as well as to strengthen work on identifying unproductive intermediaries and controlling trade surcharges.
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Kazakhstan-EU trade turnover stood at $40bn - Kazakh President
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The mutual trade turnover between Kazakhstan and the EU countries reached 40 billion dollars last year, Kazinform cites Akorda.
Speaking at the ‘Central Asia - European Union’ Forum, Kazakh Head of State Kassym-Jomart Tokayev noted that the prospects for cooperation between Central Asia and the European Union are huge. Last year, the flow of European investments in Kazakhstan rose by 23% to $12.5 billion, he said.
Of the $350bln of direct foreign investment the country has attracted over 30 years, the European Union accounts for almost half. The EU is the largest trade partner of Kazakhstan, accounting for mor than 40% of the foreign trade.
Last year, the mutual trade turnover between Kazakhstan and the EU countries stood at $40bn. I believe that the figure could be increased to $50bn," he said.
Kazakhstan and the EU actively develop cooperation in 29 key directions, based on the Agreement on Expanded Partnership and Cooperation with the EU countries.
There are over three thousand companies with the participation of European capital, including Shell, Eni, Total, Air Liquide, Alstom, Siemens, and others.
President Tokayev noted that the Kazakhstan-EU partnership was strengthened by new agreements in the promising strategic areas such as the extraction of rare earth metals, green hydrogen production.
One of the breakthrough projects is the commencement of the construction a plant for installing wind and solar power stations by the German-Sweden Svevind company and production of three million tons of green hydrogen in Kazakhstan, which is around 20% of the EU’s needs," said the Kazakh Head of State.
Earlier it was reported that President Kassym-Jomart Tokayev had arrived in Cholpon-Ata, Kyrgyzstan, to take part in the leaders of the Central Asian countries and the European Union.
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Inflation in May 2023 was 15.9% year-on-year
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The consumer price index slowed down for the month and amounted to 0.6% against 0.9% in April. Prices for paid services increased by 0.7%, food and non-food products - by 0.5%.
The increase in prices was noted for air passenger transport services by 11.5%, rail - by 2.5%. There is an increase in prices for sanatorium services by 5.6%, in the field of recreation and sports events - by 2.9%, preschool services - by 1.7%, healthcare - by 1.4%.
Food prices have significantly increased for fruit and vegetable products, in May cabbage rose by 23.8%, onions - by 9.9%, grapes - by 9.6%, carrots - by 8.6%, apples - by 5.3%, potatoes - by 4%. Rice prices increased by 2.5%, soft drinks - by 1.9%, drinking milk - by 1.8%, tea - by 1.6%. Cucumbers fell by 39.6%, tomatoes - by 23.7%, sweet peppers - by 7.6%, buckwheat groats - by 4%, bananas - by 3.8%.
The increase in prices in May was observed for liquefied gas in cylinders by 1.7%, gasoline - by 1.2%, diesel fuel - by 0.7%. Prices compared to last month increased for clothing and shoes by 1.3%, personal goods - by 1.2%, dishes - by 0.9%, detergents and cleaning products - by 0.8%.
Among the regions, the highest monthly inflation was registered in the city of Shymkent - by 1% (above the national average by 0.4 percentage points), the lowest - 0.1% in the Pavlodar region.
In the context of regions, prices for food products increased the most in the Ulytau region by 1.4%, non-food products - in the city of Almaty and North Kazakhstan region by 1%, paid services - in the city of Shymkent by 2.7%.
Inflation in May 2023 was 15.9% year-on-year. Prices for food products increased by 16.5%, non-food products - by 17.2%, paid services - by 13.5%.
Compared to May 2022, office supplies rose by 67.5%, cucumbers - by 53.4%, household soap - by 49.7%, dishwashing detergent - by 47.1%, concentrated sugar-free milk - by 46.6%, rice - by 44.9%, day hospital treatment - by 43.6%, sugar-refined - by 42.7%. On the contrary, in annual terms, cabbage and carrots fell by 19.1%, potatoes - by 16.8%, garlic - by 8.4%, beets - by 7.1%.
The consumer price index indicator characterizing the inflation rate is calculated monthly. Observations are conducted on tariffs and prices for services and goods, for a total of 508 positions. Dynamic changes in inflation can be viewed on a specially designed interactive dashboard, which covers indicators starting from 2018.
The Bureau calculates the consumer price index indicator monthly, which characterizes the level of inflation. We are observing changes in tariffs and prices for services and goods, for a total of 508 items. Prices are registered through a selective network of trade and service enterprises of various forms of ownership in all regional centers, the capital and a certain circle of cities and district centers," explains Kuanyshbek Zhakypbekuly, Director of the Bureau's Price Statistics Department.
*Since January 2023, when constructing the consumer price index, the share of food products is 41.8%, non-food products - 29.6%, paid services - 28.6%.
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