The European Bank for Reconstruction and Development (EBRD) is lending $7 million to Kazakh microlender Arnur Credit to help young entrepreneurs get financing for small businesses. The loan comes through EBRD’s Youth in Business program for Central Asia and marks the second time the bank has backed Arnur Credit under this initiative. The money targets micro, small, and medium-sized enterprises across Kazakhstan, with a focus on giving young people better access to credit they often can’t get from traditional banks. EBRD wants to boost youth entrepreneurship and create more jobs in a country where many young people struggle to find work or start their own businesses.
Kazakhstan has lots of young people with business ideas but not much access to startup capital. Traditional banks often won’t lend to entrepreneurs without established credit histories or significant collateral. Microlenders like Arnur Credit fill this gap by offering smaller loans with more flexible requirements, though they still need funding from larger institutions like EBRD to expand their operations.
The program goes beyond just money. Young entrepreneurs who get loans can also tap into EBRD’s Advice for Small Businesses program for training, advisory services, and networking opportunities. Arnur Credit became the first partner in Kazakhstan to run joint training sessions with EBRD earlier this year, helping 65 young entrepreneurs from Shymkent, Turkestan, and Almaty learn business skills.
EBRD has put over €10 billion into Kazakhstan through 340 projects, with most of the money going to private businesses rather than government programs. The bank sees supporting young entrepreneurs as crucial for Kazakhstan’s economic development and social reforms.
The loan should help more young Kazakhs turn their business ideas into real companies that create jobs and contribute to the economy.
