EBRD President Outlines Joint Strategic Goals with Kazakhstan
The European Bank for Reconstruction and Development (EBRD) has significantly increased its investment strategy in Kazakhstan, focusing on sustainable development and private entrepreneurship with notable progress.
The EBRD's investment strategy in Kazakhstan is characterised by a strong focus on sustainable infrastructure, green energy transition, and private sector development, particularly small and medium-sized enterprises (SMEs), all aligned with Kazakhstan’s strategic development plans.
Approximately 75% of the current EBRD portfolio in Kazakhstan, equating to over $3.2 billion invested in 129 active projects, is dedicated to sustainable infrastructure. This includes projects aimed at green energy, energy efficiency, and environmentally sustainable development.
The EBRD supports Kazakhstan’s shift to a low-carbon economy through projects under the Just Energy Transition Partnership (JETP), mobilising green investments aimed at decarbonising energy and enhancing renewable sources.
Investments also include the reconstruction and revitalisation of key transport corridors, such as financing the reconstruction of a 136 km section of the Aktobe-Ulgaisyn road, which is critical for domestic and international transit.
The EBRD has a strategic emphasis on the development of SMEs, agriculture, and information technology sectors, fostering private entrepreneurship and economic diversification.
In 2024, EBRD investments in Kazakhstan more than tripled, with nearly €1 billion allocated, marking a record level of engagement in the country’s economy. In 2024 alone, 25 new projects worth $935 million were signed, covering priority sectors such as transport infrastructure, green energy, and SME support.
The cumulative joint initiatives since the EBRD began operating in Kazakhstan total 340 projects valued at $11.6 billion, demonstrating sustained and growing collaboration. Kazakh leadership, including President Kassym-Jomart Tokayev and Prime Minister Olzhas Bektenov, have publicly reaffirmed their commitment to deepen cooperation with the EBRD to modernise infrastructure, enhance economic well-being, and promote quality growth.
The EBRD is helping Kazakhstan with the implementation of its long-term low greenhouse gas emissions development strategy and the Global Methane Pledge. Scaling up renewables is a key component of Kazakhstan's competitiveness, according to EBRD President Odile Renaud-Basso. Attracting private businesses and building strong public-private partnerships (PPPs) are important for Kazakhstan's economic development, and the EBRD has supported several such partnerships, including the Big Almaty Ring Road.
The EBRD has invested more than 11 billion euros (US$12.7 billion) across 340 projects in Kazakhstan over the past 33 years, making it the bank's largest and longest-running continuous operation in Central Asia. The bank operates well in times of crisis and is committed to supporting market economies based on democratic principles in the face of geopolitical adversities.
Renaud-Basso stressed the importance of investments in the modernisation of the electrical grid for further decarbonization of the economy. She also emphasised the potential for Kazakhstan in critical raw materials, a sector of interest for foreign investors.
The EBRD works well beyond financing and includes policy and advisory support. Much of the investment from the EBRD has been directed towards boosting private entrepreneurship in Kazakhstan. The EBRD is keen to support Kazakhstan's development priorities as part of the country's National Infrastructure Plan until 2029.
The EBRD was instrumental in the creation of the Foreign Investors' Council in Kazakhstan. Renaud-Basso reaffirmed the EBRD’s commitment to supporting Kazakhstan in its green transition, having financed around a third of the increase in Kazakhstan's renewable energy capacity.
Diversifying the economy is crucial for Kazakhstan, as the markets for its traditional raw materials exports (mining, oil, and gas) are volatile. Kazakhstan has made real progress in enhancing its investment climate, and recent geopolitical shifts are opening new opportunities for the country to position itself as a key investment destination.
The EBRD's support to Kazakhstan extends beyond financing and includes policy and advisory support. The latest United Nations Conference on Trade and Development World Investment Report highlights an 11% decline in global foreign direct investment (FDI) flows to $1.5 trillion. However, according to the report, Kazakhstan's net FDI has surpassed $151 billion since gaining independence in 1991.
In Ukraine, the bank has deployed more than seven billion euros (US$8.1 billion) since the start of Russia's war. The EBRD delivered a record 16.6 billion euros (US$19.2 billion) of investment in 2024, with more being invested in the private sector, the green economy, and human capital than ever before.
She pointed out continued privatization as a step for Kazakhstan's development, mentioning the initial public offering of Kazakhstan's Air Astana airline last year, which the EBRD supported. Approximately 18.5 billion euros (US$21.4 billion) in investment is needed to enhance the competitiveness of the Trans-Caspian corridor, also known as the Middle Corridor, according to a study conducted by the EBRD in 2023.
The EBRD's investment strategy in Kazakhstan includes focusing on sectors such as green energy and SMEs, with the intention of enhancing sustainable infrastructure and promoting business development. In 2024, the EBRD expanded its investments in Kazakhstan, particularly in projects aimed at green energy and SME support.
