Company News

Export Credit Agency of Kazakhstan, a subsidiary of Baiterek Holding, has announced its preliminary results for 2024, marking a milestone year. The agency provided financing exceeding 330 billion tenge to exporters, generating an overall economic impact of 1.7 trillion tenge.

KazakhExport's Transformation

In 2024, under a presidential mandate, KazakhExport was elevated to the status of a full-fledged export credit agency (ECA). Following global best practices, ECAs empower national exporters, enabling them to compete internationally, strengthen their market positions, and contribute to economic diversification.

“With this new status, KazakhExport has significantly broadened its range of services for domestic exporters. These include insurance, reinsurance, pre-export and trade financing, and export operation guarantees. Our portfolio now boasts over 20 tailored programs covering every stage of the export process – from contract preparation to fulfillment. Affordable loan insurance, in particular, has made bank financing more accessible, addressing the working capital needs of many enterprises,” said Allen Chaizhunusov, Chairman of the Board of KazakhExport.

In the past year, the number of trade and pre-export financing projects doubled, alongside the introduction of new guarantees. These innovations facilitate participation in international tenders and ensure payment obligations under export contracts. With a dedicated regulatory framework now in place, export volumes have surged, driving a significant increase in both the value and geographic reach of Kazakhstan’s exports.

Record Support for Exporters

Export Credit Agency of Kazakhstan achieved a historic milestone in 2024, providing over 330 billion tenge in financing to exporters – the highest volume in the company’s history. The total economic impact is estimated at 1.7 trillion tenge, encompassing export revenue, product output, and tax contributions.

This year, 90 exporters received financial support, enabling them to sign contracts with 350 international partners. The most in-demand tools included export credit insurance, loan insurance, and letters of credit. These financial instruments have facilitated market expansion, production modernization, and increased working capital. Notable examples include the modernization of the Shin-Line ice cream plant, the second stage of construction at the PrimaKus poultry complex, and insurance support for Lotte Rakhat.

New Horizons for Kazakhstani Exporters

KazakhExport strengthened its partnerships with international banks in Central Asia, Europe, and foreign export credit agencies, unlocking new opportunities for exporters. The agency’s portfolio reflects the diversity of Kazakhstan’s non-resource exports, with a significant focus on the food industry, metallurgy, mechanical engineering, chemicals, and the agro-industrial sector. These sectors accounted for 96% of the supported exports, valued at 458 billion tenge.

Central Asia, the Middle East, and China remained key export markets, with Uzbekistan seeing a 25% increase in supported export volumes. Additionally, there was notable growth in new export categories, such as glass, light industry products, and building materials. The range of exported goods and the number of exporters in these industries continue to expand.

Supporting high-value-added product manufacturers remains a top priority for KazakhExport. In line with global sustainability trends, the agency has also begun promoting green projects, ensuring its efforts align with sustainable development goals.

Digital Transformation

In 2024, KazakhExport launched the Exporter's Personal Account, a digital platform designed to simplify client interactions. The platform allows exporters to submit applications, sign contracts digitally, and track their progress, significantly reducing processing times.

Operating as a one-stop-shop, the platform is integrated with the Bgov business support portal, Baiterek Holding’s contact center, and provides real-time communication with assigned agency managers. This innovative solution enhances efficiency, making it easier than ever for Kazakhstani companies to access export support services.

Plans for the Future

“We aim to double the volume of insurance to 1.2 trillion tenge in the next few years. In collaboration with second-tier banks, we are also developing a portfolio insurance product tailored for small businesses to improve their access to financing. Additionally, we will continue providing practical support to exporters in expanding their geographic reach in both traditional and new markets. This includes tripling the volume of pre-export and trade financing by next year,” stated Allen Chaizhunusov.

KazakhExport is placing significant emphasis on reinsurance development to address the growing volume and scope of support. With increasing commitments, risk levels also rise, prompting the company to expand cooperation with export credit agencies (ECAs) from other countries and international reinsurance firms. In the latter half of 2024 alone, the volume of reinsurance more than doubled, substantially mitigating risks for Baiterek Holding while ensuring the company can maintain and scale its support for exporters.

KazakhExport reaffirmed its openness to partnering with domestic exporters and manufacturers, providing comprehensive support at every stage of entering international markets. The agency offers modern financial tools and an individualized approach to meet the needs of each partner.

Source:  zakon.kz