To support Kazakhstan's industrial sector and foster economic growth, the European Bank for Reconstruction and Development (EBRD) has announced an investment of up to KZT 5.5bn ( €11mn) in the Salt Industry, a key player in the country's salt production landscape, EBRD reported. The loan, designated as convertible, is intended to facilitate the expansion plans of Araltuz, a leading Kazakhstan-based salt producer operating in Central Asia.
Araltuz, a subsidiary of Salt Industry, has earmarked the loan for a comprehensive upgrade of its production facilities. This investment aims to enable the company to venture into the domestic production of vacuum salt, also recognized as evaporated or culinary salt, alongside its existing table and low-grade technical salt offerings.
Furthermore, the infusion of funds will empower Araltuz to diversify its export portfolio and penetrate new markets in Europe, the Middle East, and China. By broadening its export reach, Araltuz seeks to fortify its position as a prominent player in the global salt industry.
As part of the collaboration with EBRD, Araltuz will embark on implementing an extensive corporate governance action plan, emphasizing transparency and accountability within its operations.
The EBRD's investment in Araltuz underscores its commitment to fostering private sector competitiveness and sustainable development in Kazakhstan. With over €10.1bn invested across 320 projects, Kazakhstan stands as the EBRD's largest and most enduring banking operation in Central Asia.
The EBRD's Priorities in Kazakhstan:
- Fostering Private Sector Competitiveness and Economic Governance: The EBRD will champion the digitalization of private enterprises, support state digitalization strategies, and facilitate investments in smart technologies across various sectors. Infrastructure development, particularly in roads and railways, will be prioritized, alongside efforts to strengthen the regulatory framework for public-private partnerships.
- Supporting Kazakhstan's Green Pathway: The EBRD will continue financing renewable energy projects and aid in integrating renewables into the national power network. Efforts will be directed toward developing a decarbonized and climate-resilient energy system, promoting cleaner energy generation, and reducing air pollution. Aligning with the Paris Agreement, the EBRD will assist in formulating strategies for carbon neutrality.
- Promoting Economic Inclusion and Gender Equality: The bank will advocate for an inclusive and diverse workforce, promote joint public-private sector reviews of skills to meet market demands and support inclusive lending practices by financial institutions. Additionally, it will provide financing for businesses in regional areas, enhancing intra-regional connectivity and fostering digital solutions.
Apart from being a recipient of EBRD investments, Kazakhstan also contributes as a donor, with total contributions exceeding €70mn. The Kazakhstan Technical Cooperation Account serves as the primary tool for its support, with initiatives like the Women in Business program receiving backing.
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