The European Bank for Reconstruction and Development (EBRD) has loaned up to €25mn to an agri commodity trader based in Kazakhstan to improve sustainable farming practices.
TradeAgra, part of major commodity trading house TBF Holding Group, will use the financing to boost its output of organic agricultural crops, help improve soil health and lower fertiliser and water use, the EBRD said.
The financing will provide seasonal working capital to support the group’s overall “procurement, processing, storage, transport and export of agricultural commodities”.
The firm will also receive a €500,000 investment grant under the EBRD’s Agrifood Nexus programme, funded by Germany’s International Climate Initiative.
Other EBRD support for the nation will involve training for staff and farmers, outreach aimed at women farmers and the introduction of more inclusive procurement practices.
The EBRD said that, to date, it had invested over €11.7bn in Kazakhstan, via more than 350 projects, with most of the funds supporting private-sector development.
Earlier this year, GTR spoke to Kazakhstan’s vice-minister of trade and integration, Aset Nusupov, who explained that the country’s goal is to “be a real hub for trade, production and innovation”.
In August, Kazakhstan lender Bank CenterCredit partnered with the International Finance Corporation to expand local firms’ access to trade finance products, with a particular focus on SMEs.
