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Kazakhstan to Acquire Funding from IDB for Villages' Internet Connection

International Monetary Organization to extend a loan for the rapid digital transformation of an inclusive economic system in Kazakhstan.

Kazakhstan to Obtain Loan from IDB for Village Internet Connectivity
Kazakhstan to Obtain Loan from IDB for Village Internet Connectivity

Kazakhstan to Acquire Funding from IDB for Villages' Internet Connection

The International Bank for Reconstruction and Development (IBRD) has approved a loan of 42 billion tenge (approximately $90 million) for a digital acceleration project in Kazakhstan. This project, known as the Digital Acceleration for an Inclusive Economy Project, is aimed at bridging the digital divide between urban and rural areas and promoting equitable access to digital services [1][3].

The project, currently underway, targets the expansion of digital connectivity in rural and remote villages across Kazakhstan. By investing in the development of telecommunications infrastructure, the initiative seeks to provide internet access to households in these areas, thereby fostering digital inclusion [1].

The loan agreement was established in June/July 2025, aligning with Kazakhstan’s broader National Infrastructure Plan, which runs until 2029. This plan aims to double the country's economy by that year [4]. The digitalization project forms part of a national push to transform Kazakhstan’s economy through digital and high-tech industries [2].

The focus of the project is on the development of optical fiber lines for quality, stability, and security. Up to 50% of capital expenditures within the project will be subsidized, and the project is expected to attract private investments and support small and medium-sized communication operators [1].

The project covers 1123 villages, affecting approximately 2.3 million people. The loan for the digitalization project has been taken in Japanese yen, and the total investment volume is approximately 84 billion tenge [1]. The project is planned to be fully implemented before the start of debt repayment in 2028, with repayment continuing until 2035 [1][3]. The interest rate for the loan is 1% [1].

This initiative is part of a wider package including over 200 infrastructure projects worth over $80 billion, focusing on key sectors such as energy, transport, water resources management, and digitalization by 2029 [4]. The digitalization efforts are expected to foster sustainable economic growth, enhance public service delivery, and boost exports [2].

President Kassym-Jomart Tokayev has ratified the agreement for this project, underscoring the government's commitment to digital transformation and economic development in Kazakhstan.

The Digital Acceleration for an Inclusive Economy Project, targeting rural and remote villages in Kazakhstan, aims to bridge the digital divide and foster digital inclusion. This project, with an investment focus on telecommunications infrastructure, seeks to promote equitable access to digital services in finance, lifestyle, and technology sectors.

The Digital Acceleration for an Inclusive Economy Project, part of Kazakhstan’s National Infrastructure Plan, is expected to attract private investments and support small and medium-sized communication operators, thereby catalyzing growth in digital and high-tech industries.

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