Astana-based “KazAgro” National Management Holding Joint Stock Company (“KazAgro”), the state-owned agency responsible for the implementation of national policy on agribusiness development in the Republic of Kazakhstan, reportedly has announced that it plans to sell 45 subsidiaries within the second phase of the ongoing privatization process in the country. The sale of three of KazAgro’s microfinance institutions (MFIs) has already been completed as part of this second phase.
KazAgro’s deputy chairman, Mr Kairat Aytuganov reportedly said that “a total number of 48 companies [has been] put up for sale within the second wave of privatization. The majority of them are microcredit organizations. […] These companies will be sold in the second half of 2014. […] We sell them almost at face-value”[1].
The government reportedly aims to sell a total of 800 state-owned and quasi-public companies from holding companies such as KazAgro within the second phase of the privatization process in Kazakhstan, which will range from 2014 to 2016.
The first privatization process in Kazakhstan took place between 1991 and 2001. During this period, 71 percent of state-owned organizations were privatized through methods including employee and management buyouts, cash auctions, direct sale and public offerings.
KazAgro reported total assets of KZT 582 billion (USD 3.2 billion) as of December 31, 2013.
By Alíz Crowley, Research Associate
About “KazAgro” National Management Holding JSC (“KazAgro”)
“KazAgro” National Management Holding Joint Stock Company (“KazAgro”) is a state-owned agency based in Astana, which is responsible for the implementation of national policy on agribusiness development in the Republic of Kazakhstan. KazAgro is also responsible for the management of national agricultural development projects. KazAgro reported total assets of KZT 582 billion (USD 3.2 billion) as of December 31, 2013.
Sources and Additional Resources
[1] Bloomberg Businessweek, BRIEF: Kazakh KazAgro plans to sell about 50 subsidiary companies
[2] InterFax Kazakhstan, Kazakhstan to launch second privatization program in July-August
[3] Kazagro National Management Holding, Financial Statements
[4] FDI. Net, Privatization in Kazakhstan, Country Fact Sheet
[5] Encyclopedia of the Nations, Kazakhstan – Industry
MicroCapital, June 3, 2014, Legislation Advances in Kazakhstan to Prohibit Anonymous Bank Accounts, Tighten Financial Monitoring of Microfinance Institutions (MFIs)
MicroCapital, March 14, 2014, European Bank for Reconstruction and Development (EBRD), BG Kazakhstan to Extend Technical Assistance to Programme for Women, Young Entrepreneurs in Kazakhstan
MicroCapital, May 28, 2012, Fund for Financial Support of Agriculture (FFSA) Loans $4.5m to Cotton Farmers in Kazakhstan
MicroCapital Universe Profile: “KazAgro” National Management Holding JSC (“KazAgro”)
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