Kazakhstan Approves French Development Agency Operations

The Kazakhstani government has officially approved the French Development Agency (AFD) Group to launch operations in the country, signaling a strengthened partnership between Kazakhstan and France.

The announcement, made Wednesday via a decree published by the Akorda press service, follows significant diplomatic developments. It builds on an agreement signed by President Kassym-Jomart Tokayev, which was a key outcome of French President Emmanuel Macron’s visit to Kazakhstan in November 2023. The agreement establishes the legal and financial framework for AFD’s activities in the country.

AFD’s activities in Kazakhstan will focus on critical sectors that directly impact public welfare. These include health, social protection, water management, sanitation, and irrigation. By offering financial assistance and technical expertise, the agency aims to bolster public institutions and improve their ability to deliver essential services to the population.

In addition to supporting the public sector, AFD’s private sector arm, Proparco, will work closely with local financial institutions and businesses in areas such as finance, energy, microfinance, and agriculture. Through targeted loans and support, Proparco aims to drive private sector growth, fostering economic resilience and innovation.

The agreement also grants AFD Group several operational privileges. These include exemption from corporate income tax and permission to open a representative office in Kazakhstan. Although empowered to provide funding in multiple currencies and offer technical assistance, AFD will not function as a bank or financial institution, which exempts it from adhering to local banking regulations.

This collaboration builds on earlier groundwork. In October, Deputy Prime Minister and Minister of National Economy Nurlan Baibazarov highlighted that AFD is legally authorized to own and manage property – except land prohibited for foreign ownership – and engage in consulting, training, and other initiatives. These activities are designed to benefit both public institutions and private enterprises in Kazakhstan.

As a public institution, the French Development Agency plays a crucial role in implementing France’s development and international cooperation policies across Africa, Asia, the Middle East, and Latin America.