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Kazakhstan
Located in northern Central Asia, at the crossroads of trade between Europe and Asia, the Republic of Kazakhstan is one of the largest countries in the world. Known as an exporter of oil, grains, and other raw materials, the country is actively working towards diversifying its economy. The AFD Group collaborates with Kazakhstani authorities to identify sustainable and inclusive growth trajectories for the country.
Context
Five times the size of France, Kazakhstan is one of the largest countries in the world. With a population of 20 million, it is also one of the least densely populated. Strategically located between Europe, Russia, and China, Kazakhstan aspires to be a regional leader in various fields.
A major oil exporter, Kazakhstan experienced rapid economic growth in the 2000s, which led to a reduction in poverty and social inequalities. According to the IMF, its GDP per capita is projected to exceed $15,000 in 2025. The country has set an ambitious goal of becoming one of the world’s top 30 economies by 2050 and achieving carbon neutrality by 2060.
To establish a sustainable development model, Kazakhstan is focused on diversifying its economy—currently highly dependent on oil prices—modernizing infrastructure, and expanding its social sector.
AFD opened its office in Astana at the end of 2024 and initiated activities in Kazakhstan in the health and water sectors. The agency is also actively exploring opportunities in transport, energy, agriculture, and digital sectors.
Our activities in Kazakhstan are overseen by AFD’s Central and Eastern Asia regional directorate.
Our approach
AFD and Kazakhstan: diversifying the economy and supporting green growth
Following the signing of the intergovernmental agreement in November 2023, which defines the status of the AFD Group in Kazakhstan, AFD has established its office in the country and continues its activities under a "Green and Inclusive Growth" mandate.
In November 2024, AFD and the Ministry of National Economy of Kazakhstan signed a memorandum of understanding outlining areas of mutual interest, including health, water, a just energy transition, green energy, transport, and digital connectivity.
The AFD Group (French Development Agency, Proparco, and Expertise France) covers all these sectors.
Proparco, AFD Group’s private sector arm, is cooperating with KMF, the leading microfinance Proparco, the AFD Group’s subsidiary dedicated to the private sector, partners with KMF, the largest microfinance institution in the country. With support from donors, KMF provides microloans to entrepreneurs in Kazakhstan’s remote regions, particularly to female entrepreneurs and agricultural businesses, promoting green and sustainable development.
In 2024, AFD allocated a grant of €945,000 to support the Ministry of Health of Kazakhstan, particularly in optimizing hospital planning and developing medical specialties under the Ministry’s 2024-2030 health infrastructure development program. This support will be implemented by AFD’s subsidiary, Expertise France, with the involvement of French and Kazakhstani experts over two years.
Meanwhile, Proparco is contributing €60 million to finance the construction of a 630-bed multidisciplinary hospital in Kokshetau, in northern Kazakhstan. This project is being developed as a public-private partnership with the Turkish company RONESANS.
Aligned with the country's sustainable water resource management strategy, AFD is funding the development of a sustainable water management planning tool for the Balkhash Lake watershed, with an investment of €1.35 million. This master plan will offer a holistic approach to resource management, incorporating projected needs from various users to ensure the livelihood of local populations facing environmental and climate challenges.
At the regional level, the project supporting IFAS (the International Fund for Saving the Aral Sea) is underway, backed by a €2 million grant. This initiative enables IFAS to conduct detailed analyses of water needs in pilot sub-basins of the Aral Sea in Kazakhstan and Uzbekistan, using mapping techniques to determine real agricultural water requirements. Additionally, awareness campaigns on sustainable water management will be implemented.
Kazakhstan has a highly carbon-intensive economy. To support the green transition of the energy and production sectors while addressing potential social consequences, Kazakhstani authorities are collaborating with various national and international stakeholders on just energy transition initiatives.
In the field
Projects
Publications & Media
Key figures
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11/23 date of the signing of the Intergovernmental Agreement defining the AFD Group’s activities in Kazakhstan
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2 ongoing projects in the water and health sectors
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2 regional projects managed from Astana by the AFD Group (support for IFAS and regional digital connectivity)