After signing a memorandum of understanding in June 2014, Kazakhstan and Hungary have joined to form the Kazakh Agricultural Development Fund. The fund formed by the national holding, ‘KazAgro’ JSC and the Export Import Bank of Hungary will have initial authorized capital of $40 million with each party contributing 50%.
This first private equity fund in the agriculture sector is part of a pilot program designed to provide attractive benefits for investors, transfer Hungarian expertise and technological knowledge to Kazakhstan’s agriculture market, improve multilateral cooperation, and create a platform that will attract future additional investments, thus strengthening trade and cooperative ties between the two countries.
The private equity fund will have primary operations in Kazakhstan and will invest in agriculture and food processing companies in the country. Currently, ‘KazAgro’ JSC is in negotiations with more than ten Hungarian companies looking to invest in Kazakhstan’s agriculture sector.
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