Water, Logistical Potential and Microfinance Institutions (MFIs)

The Republic of Kazakhstan intends to enhance the utilization ratio of its groundwater resources aiming to increase this figure up to 15%. Currently the agricultural sector consumes more than 40,000 tons of water per day which constitutes 60% of the total water reserves accumulated across the nation. Out of this, groundwater accounts for merely 1.2% or 548 tons daily. In the initial phase, considering the economic rationale, the objective is to escalate the groundwater usage in agriculture to between 10% and 15% as reported by the department. The annual groundwater reserves in Kazakhstan, deemed exploitable, exceed 43,000 tons daily. Such initiatives pose significant challenges, particularly in advancing water efficiency and developing related technologies, and represent strategic solutions to counter the anticipated water scarcity forecasted for the upcoming decade.

Rail freight to the People's Republic of China surged by 43% in January. Over this period Kazakhstan exported 1 million tons of cargo to China. This included a 19% increase in iron ore exports, 37% in grain, and a doubling in ferrous metals, with non-ferrous metals experiencing a 2.2-fold increase. Additionally, containerized export cargo transportations also amplified by 2.2 times. Collectively, the volume of rail freight transport between Kazakhstan and China rose by 22% in January 2024 totaling 2.4 million tons, compared to the same timeframe in 2023. The development and actualization of logistical capabilities represent a primary challenge, especially considering the intricate geopolitical environment surrounding Kazakhstan.

The Financial Market Regulation and Development Agency suspended the licenses for microfinance activities of five firms for three months. An MFI with a suspended license must fulfill the obligations undertaken in its previously concluded microcredit agreements. Clients of MFIs possessing unmet commitments under microcredit contracts, are held accountable for any contractual breaches in accordance with the stipulated agreement terms. Instituting regulatory measures in the microfinance sector, which receives a substantial number of complaints, constitutes one of the main challenges in mitigating excessive indebtedness.