Results snapshot Turkey THE EBRD IN KAZAKHSTAN Results snapshot 2015-20 In numbers Overview 1994-2020 2015-20 The EBRD has been active in Kazakhstan since 1993 and the country has been one of €7.95 billion €2.29 billion the largest recipients of the Bank's investment. During that time, the Bank has Net cumulative investment* supported clients in the energy, infrastructure, financial and corporate sectors. Total EBRD investments have amounted to nearly €8 billion, with €2.29 billion invested 280 Number of projects 98 between 2015 and 2020 alone, amid growing opportunities to intensify the EBRD’s engagement in the country. 53% Private-sector share of cumulative investment The Bank’s strategic focus in Kazakhstan is on: ► the green economy transition and renewable energy €2.19 billion €1.37 billion ► transport infrastructure and municipal services Green economy financing commitments ► private-sector development, small and medium-sized enterprises (SMEs) and competitiveness. €1.87 billion € 961million The EBRD is also increasingly focused on economic inclusion by enabling wider Volume of co-financing directly mobilised access to better infrastructure, finance and skills. In response to the Covid-19 crisis, the Bank provided €195 million in funding (as of December 2020) to support Our policy engagement corporate and financial-sector resilience, sustain trade and maintain infrastructure ► Green economy transition and legislation and energy services. ► Legal framework for PPPs ► Environmental and social standards, tariff- Highlights of setting mechanism and commercialisation in More renewable energy regulated sectors our results The EBRD financed an increase in renewable energy capacity by an estimated ► Economic inclusion, gender equality and 2015-20 687 MW, representing almost half of all skills development renewable energy capacity in the country. ► Capital and money markets Greater local The annual CO2 reductions from this currency financing capacity are expected to reach at least ► Investment attractiveness 980,000 tonnes. The majority of the newly The EBRD provided the ► Collaboration with the Astana Financial installed capacity (463 MW) is financed equivalent of €2.23 billion in Services Authority to establish crowdfunding through the EBRD's Renewables Framework. local currency to local banks and rules and a regulatory framework for mobile corporations. A successful public-private and digital banking services SME growth partnership (PPP) The EBRD aided the disbursement of over With an updated legal and regulatory > Read the latest country a million loans to SMEs via partner banks, framework for PPPs in Kazakhstan, strategy for Kazakhstan: including 22,000 loans under the Women the 66 km Almaty ring road (BAKAD in Business programme. It offered PPP) is the first concession road business advice to over 1,100 SMEs, of project of its kind in the country. which 54 per cent raised turnover and 60 *Stock of all EBRD commitments less their sale or cancellations. per cent reported higher productivity. We seek to help countries transition Kazakhstan in context towards democratic and sustainable market economies. We finance Kazakhstan’s economy has unique characteristics: an abundance of natural resources, a vast projects that strengthen the private landlocked geography, a relatively small population and proximity to both Russia and sector in economies undergoing China. Before the Covid-19 crisis, annual gross domestic product (GDP) growth averaged transition to a well-functioning more than 5 per cent, with income per capita approaching that of some European Union market system. Our investment (EU) countries. The government has made progress on the longer-term diversification of decisions are guided by six the economy and its renewable energy reform agenda. “transition qualities”, which focus on However, Kazakhstan remains vulnerable to global commodity price shocks, as extractive making economies competitive, sectors continue to play a key role in the economy. Boosting private-sector competitiveness well- governed, green, inclusive, in non-extractive industries would increase the country’s resilience. The assets of state- resilient and integrated. owned enterprises constitute as much as 40-50 per cent of GDP in Kazakhstan. In particular, firms owned by Samruk-Kazyna, Kazakhstan’s national holding company, retain a For more detail on our significant stake in many important sectors of the economy, such as mining, transportation transition qualities visit www.ebrd.com/qualities and telecommunications, while the state also has a strong presence in the agricultural sector. The SME sector remains comparatively small and less productive than in Organisation of Economic Co-operation and Development (OECD) countries. Further steps are also needed EBRD score,1 2020 to strengthen the financial sector, particularly in the post-Covid-19 period, and to boost (1-worst, 10-best) regional connectivity, economic opportunities and inclusive growth. Competitive Green Inclusive Key economic indicators Kazakhstan OECD comparators2 Integrated 2015 2020 2020 Resilient GDP per capita, PPP (current international US$) Well-governed 24,290 26,351 50,413 0 2 4 6 8 10 Electricity production from renewable sources, 0.16 3.0 11.0 Kazakhstan excluding hydroelectric (% of total) OECD comparators Labour force participation rate, female (% of Central Asian average female population aged 15-64) (modelled 73.2 71.5 73.0 ILO estimate) Unemployment, total (% of total labour EBRD investment 2015-20 4.9 4.6 5.0 force) (modelled ILO estimate) € million Number 35 Unemployment, youth total (% of total labour 3.8 4.0 11.0 1000 force aged 15-24) (modelled ILO estimate) 30 25 800 Our approach and operational delivery 20 400 15 The EBRD supports the development of the private sector through a combination of investment, policy dialogue and technical assistance. We offer a range of financial 10 200 instruments, both directly and through partner financial institutions. In addition, we 5 provide business advisory services and technical assistance to help improve the 0 0 institutional capacity of our clients. In our policy engagement work, we address a range of 2015 2016 2017 2018 2019 2020 factors to help shape initiatives that create favourable conditions for sustainable and Annual business investment Number of projects inclusive economic growth. From 2015 to 2020, the EBRD invested nearly €4 billion in Kazakhstan, mostly in Portfolio by sector sustainable infrastructure. Its investment has increased significantly since 2017, reflecting the challenges of and opportunities in Kazakhstan and, in particular, the Bank’s support Sustainable infrastructure, for the green transition, strengthening financial-sector resilience and investment in 67% sustainable infrastructure. In response to the Covid-19 pandemic, it rapidly increased its support. The EBRD also supported its Kazakh clients by developing guidance materials on how to manage issues related to health and safety, labour and stakeholder engagement during the pandemic.3 The Bank mobilises high levels of donor finance, including from the EU. As well as being a country where the EBRD invests, Kazakhstan is an EBRD donor. To date, the Kazakh government has contributed €64 million to support the EBRD’s Women in Business programme, business advisory services and in-country policy Industry, commerce Financial institutions, and agribusiness, 6% dialogue objectives, with a primary focus on transport, municipal infrastructure, 27% telecommunications and energy efficiency. 1 For details see https://www.ebrd.com/economic-research-and-data/transition-qualities-asses.html. 2 OECD comparators are a simple average of eight OECD countries: Canada, the United States of America, the United Kingdom, Sweden, France, Germany, Japan and the Czech Republic. Data relate to EBRD activities in Kazakhstan between 3EBRD's hublet on sustainability and Covid-19: https://www.ebrd.com/sustainability-covid.html. 2015 and 2020. EBRD-financed solar plant in Chulakkurgan THE EBRD IN KAZAKHSTAN Related SDGs Green economy transition, EBRD Green Cities and renewable energy 2015-20 EBRD score Kazakhstan is the largest emitter of greenhouse gases in Central Asia, (1-worst, 10-best) registering one of the highest CO2 intensities in the world. More than 70 CO₂ emissions per cent of Kazakhstan’s electricity is produced in ageing coal-fired plants, from residential served by large volumes of cheap local coal, in the north-east of the country. buildings Consequently, the energy sector, in particular power and heat generation, CO₂ emissions from transport accounts for 80 per cent of the country’s carbon emissions. With rapid Electricity economic growth and increasing electricity and energy demands, it has production become essential for Kazakhstan to invest in a more decentralised, balanced from renewables and environmentally friendly energy supply system that includes a range of Environmental technology renewable resources. Therefore, Kazakhstan has embarked on building a green patents economy, leading the charge among its Central Asian neighbours. 0 1 2 3 4 5 6 Kazakhstan OECD comparators Central Asian average How we work In numbers (2015-20) Quick links > Green Economy Transition The EBRD promotes a shift to more €1.37 billion environmentally friendly energy supply Green economy financing > Green Economy Financing systems and performance by investing in commitments Facility municipal sectors, renewables, energy- > Green Climate Fund efficient technologies and resource 15