The inflow of investment in agriculture has increased

Investment in agriculture shows a steady growth: in one year the amount of capital investment rose to 603 billion tenge, World of NAN reports with reference to the monitoring project Ranking.kz.

In recent years, there has been a dynamic growth of investment in the agricultural sector. According to the results of ten months of this year 2021 the amount of investment in fixed assets in the sector increased by considerable 46.3% for the year and reached 603.4 billion tenge (a year earlier - 412.5 billion tenge). Over the past five years, investments have been increasing by an average of 24.3% per year.

Taking into account the lack of financing in the sector, such growth dynamics in the investment segment is a positive indicator. It is the lack of funding that hampers the activities of most farmers. At the same time, a significant share of market players note that the main element of production support are concessional loans, as well as other mechanisms of state support.

The main source of concessional loans for the subjects of agriculture in Kazakhstan is the state financial institution Agrarian Credit Corporation (ACC). This year the corporation has financed more than 7,1 thousand entrepreneurs for the total amount over 209 billion tenge. Of these, 70 billion tenge, accounts for the spring field and harvest work, 89.5 billion tenge focused on the purchase of machinery, livestock and other needs. Also 19.5 billion tenge was directed to the creation of industrial and family dairy farms, 21.4 billion tenge was spent on development of plant growing (industrial greenhouses for vegetables, greens and drip irrigation system purchase).