OECD Paris meeting: Deputy Agriculture Minister tells about financing agribusiness in Kazakhstan
The meeting discussed the OECD annual report ‘Monitoring and Evaluation of Agricultural Policy Indicators'. Gulmira Issayeva briefed the participants on the development of the country's agricultural sector. Since a number of recommendations touch on improving access to finance and state's and state agents' role in this process, Deputy Minister also spoke about the activities of the National Managing Holding KazAgro and in terms of supporting the agricultural sector.
According to Ms. Issayeva, today KazAgro increases the role of private sector in financing agribusiness. Within the framework of this process, three of its subsidiaries are being transferred to a competitive environment. Today KazAgro moves from direct finance to funding private financial institutions, such as microfinance organizations in rural areas, credit partnerships, leasing companies, and banks.
In addition, to improve access to finance, Holding's subsidiary KazAgroGarant has introduced a credit guarantee system for micro and small farmers who receive loans from microfinance organizations and credit partnerships.
The Holding together with the National Chamber of Entrepreneurs of Kazakhstan Atameken is developing programs for the development of microcredit in rural areas, including training rural people on the basics of entrepreneurship. The concept of institutional development of credit partnerships has been developed and the association of credit organizations was created.
According to the Deputy Minister, in order to improve corporate governance, KazAgro has adopted a new Corporate Governance Code, taking into account the OECD requirements.
Gulmira Issayeva stressed that close cooperation with OECD is extremely important for achieving joint long-term goals. To a large extent, the transfer of best practices and policies from the Organization has become the main driver of improvements in state and economic management in agriculture.
The Organization for Economic Cooperation and Development (OECD) is an international intergovernmental organization of economically developed countries. It is a forum of countries describing themselves as committed to democracy and the market economy, providing a platform to compare policy experiences, seeking answers to common problems, identify good practices and coordinate domestic and international policies of its members. In 1948, the OECD originated as the Organisation for European Economic Co-operation (OEEC).
JSC "National Managing Holding KazAgro implements state policy on the development of Kazakhstan's agro-industrial complex by ensuring effective management of investment assets of the companies in its structure. The Holding includes JSC National Company Food Contract Corporation, JSC KazAgroProduct, KazAgroFinance JSC, Agrarian Credit Corporation JSC, Fund for Agricultural Financial Support JSC, KazAgroGarant JSC and KazAgroMarketing JSC.