Almaty, Kazakhstan, June 1, 2023 –IFC is joining forces with one of Kazakhstan's leading agribusiness groups to support its investment program and working capital needs – helping to diversify the country's economy, create jobs, and boost food security in the region.
KazFoodProducts (KFP), a leader in the deep wheat processing, production and processing of meat, and confectionery sectors in Kazakhstan, will receive a financing package of $15 million equivalent from IFC, a member of the World Bank Group. The funds will support the company's working capital needs and investment program in the aftermath of the COVID-19 pandemic and Russia's invasion of Ukraine.
In addition, IFC's advisory services are supporting KFP in obtaining an EDGE Gender Equality Certification, the first global private sector-focused certification which sets benchmarks and standards to promote gender-inclusive workplaces. The company would be the first in Kazakhstan to achieve the certification.
Kazakhstan is a major producer and exporter of grain. However, growing demand for imported food products has led Kazakhstan to become a net importer of agricultural products. By boosting the domestic food-processing sector, the project will also help diversify Kazakhstan's economy away from oil and gas sectors, which represent 75 percent of total exports, support farmers and retailers in the supply chain, and create direct and indirect jobs in the country's frontier regions. With KFP exporting flour from Kazakhstan to grain-deficit nations, such as Afghanistan and Tajikistan, it will also help bolster food security in the region.
"Our partnership with IFC has been instrumental in enabling us to improve efficiency and drive sustainable growth in our holding. We remain committed to pursuing environmentally and socially responsible practices and look forward to lead the way as the first gender EDGE-certified company in Kazakhstan," said Alikhan Talgatbek, CEO of KazFoodProducts.
Kazakhstan is the second largest global exporter of wheat flour after Türkiye and the third largest producer of grain in the region after Russia and Ukraine. Wheat is also the country's largest non-extractive export product.
IFC previously invested in KFP in 2018 and has also provided advisory services to improve the company's corporate governance practices.
"With its vast arable land, Kazakhstan's agri-sector is a key pillar for both social and economic development," said Ulyana Dovbush, IFC's Portfolio Manager. "Our collaboration with KFP supports sustainable growth of a leading agribusiness player in the country. That will help create jobs, diversify the economy, and support grain exports to food-deficit countries in the region."
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About KazFoodProducts
Founded in 1998, KazFoodProducts is one of the leading agro-industrial holdings of the Republic of Kazakhstan. The holding successfully operates in the field of agribusiness - from growing crops, and breeding farm animals to developing and selling high-quality finished export-oriented products. KFP is comprised of 20 subsidiary enterprises, employing in total 5000 people. The company's products are sold domestically and in Brazil, the USA, Germany, the UK, Belgium, Romania, the Netherlands, Ukraine, the UK, Uzbekistan, Tajikistan, Kyrgyzstan, Russia, Turkey, Afghanistan, Turkmenistan and China.
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