Long-term funding for SMEs in Kazakhstan and finance projects involving climate change adaptation and mitigation and environmental protection are set to be more available as the European Investment Bank (EIB) has signed two financing contracts for EUR 150 million and EUR 50 million.
Provided on favourable terms, the EIB funds will help to implement the “Concept for the Transition of the Republic of Kazakhstan to a Green Economy”, as climate action and environmental protection are Kazakhstan’s key policy objectives.
The EIB is joining forces with a well-established partner – JSC DAMU Entrepreneurship Development Fund (DAMU), which is a state-owned development institution created by the government to support the development of the SME sector in Kazakhstan and which will on-lend the EIB funds to selected financial intermediaries.
DAMU, which works closely with the banking sector in Kazakhstan, enjoys a countrywide presence and is thus well positioned to channel the EIB funds to SMEs throughout Kazakhstan implementing projects in the areas of manufacturing, industry, transportation, agriculture, and municipal and other services. This will contribute to the improvement of industrial competitiveness by fostering cleaner and greener production investments, renewable energy generation, and resource efficiency or climate resilient infrastructure projects.