Elevated EBRD Financings in Kazakhstan 2024, Marking a New Record Year in Central Asia
In 2024, the European Bank for Reconstruction and Development (EBRD) significantly increased its investments in Central Asia, with Kazakhstan as a central focus. The bank invested a record-breaking €913 million (approximately US$935 million) in 25 projects, marking a more than triple increase in its annual investments.
The EBRD's strategy in Central Asia aimed to foster sustainable economic growth, regional cooperation, and infrastructure modernization. In Kazakhstan, the majority (61%) of the funding was directed towards green economy projects, supporting the country's sustainable development, decarbonization, and digitalization efforts. Key focuses included developing critical raw materials linked to Kazakhstan’s natural resource sector and diversifying the economy beyond hydrocarbons in line with a global low-carbon transition.
Among the infrastructure projects aligned with EBRD's priorities, the rehabilitation of strategic transport routes such as the Kyzylorda-Zhezkazgan road (part of the north-south E123 corridor connecting the Ural region with Central Asia) aimed at enhancing regional integration and connectivity. The bank was also involved in broader Central Asia connectivity efforts, complementing programs like CAREC and multimodal transport corridors to convert the landlocked challenge into an economic advantage.
One of the notable projects in Kazakhstan was the construction and operation of a 630-bed multidisciplinary hospital in Kokshetau, which secured a financing package of 365 million euros from six financial institutions, including the EBRD's 105 million euros. This hospital project, a groundbreaking public-private partnership (PPP), was the first of its kind in Kazakhstan and Central Asia's healthcare sector.
The EBRD also made its first direct equity investment in Central Asia's critical raw materials sector in August 2024, acquiring a 17.36% stake in Sarytogan Graphite Limited, an Australian Securities Exchange-listed company. Moreover, the bank provided a $65 million financial package to ACWA Power UKS Green H2, a joint venture in Uzbekistan, for a renewable hydrogen project, the first of its kind in Central Asia.
The EBRD's impact was not only in volume but also in quality, with demand for its unique business model growing each year. The bank arranged a financing of 262 million euros ($270.5 million) for the Kazakhstan Electricity Grid Operating Company (KEGOC) in December 2024, supporting the company's efforts to build around 600 kilometers of high-voltage 500-kilovolt transmission lines. Last year was also a record-high year for the EBRD's investments in Central Asia, totaling almost 2.26 billion euros across six countries.
In addition to infrastructure projects, the EBRD's Advice for Small Business program kicked off 188 advisory projects in Kazakhstan in 2024, with more than half targeting women entrepreneurs and 60% in the regions. The program reached more than 450 small and medium-sized businesses across the region.
The construction of a new wastewater treatment plant in Aktobe, Kazakhstan, received a 96.4 million euro loan from the EBRD, making it the bank's largest municipal project in Central Asia. EBRD President Odile Renaud-Basso stated that the bank had a record 16.6 billion euros ($17.2 billion) of investments in 2024, a 26% percent growth compared to the previous year.
The EBRD's efforts in Kazakhstan and Central Asia underscore its commitment to promoting sustainable economic growth, regional cooperation, and infrastructure modernization in the region. The bank's investments and projects will continue to contribute to the region's development in the years to come.
[1] Source: European Bank for Reconstruction and Development (EBRD) website [2] Source: Asian Development Bank website [3] Source: Central Asia Regional Economic Cooperation (CAREC) website [4] Source: EBRD press release on the rehabilitation of the Kyzylorda-Zhezkazgan road
- The European Bank for Reconstruction and Development (EBRD) invested a significant amount in Central Asia in 2024, with Kazakhstan as a key focus, funneling €913 million into 25 projects, marking a notable increase in its annual investments.
- The EBRD's investments in Kazakhstan were primarily directed towards green economy projects, supporting the country's efforts in sustainable development, decarbonization, and digitalization, with 61% of the funding allocated for such projects in 2024.
- One of the EBRD's notable projects in Kazakhstan was the construction and operation of a 630-bed multidisciplinary hospital in Kokshetau, achieved through a public-private partnership with the hospital securing a financing package of 365 million euros from six financial institutions, including the EBRD's contribution of €105 million.
- In line with its focus on renewable energy, the EBRD provided a $65 million financial package to ACWA Power UKS Green H2, a joint venture in Uzbekistan, for a renewable hydrogen project, marking the first of its kind in Central Asia.
