The World Bank said Monday that its Board of Executive Directors approved a $40 million loan to facilitate competitiveness for small and medium-size enterprises (SME) in Kazakhstan.

The lack of management skills and market linkings are major obstacles Kazakhstan's private sector faces, the bank said. This project aims to increase these capacities by training business consultants to be able to help SMEs and entrepreneurs. 

“Small and medium-size enterprises are widely identified as important sources of economic growth and employment and, therefore, an essential foundation for shared prosperity,” World Bank Country Manager for Kazakhstan Ludmilla Butenko said. “The project is expected to increase the competitiveness of Kazakhstani SMEs to contribute to diversification of the economy by reducing its reliance on extractive industries.”

Market linking will be improved by a pilot supply development program that will help authorities facilitate development in emerging sectors of the economy.

This project is subject to Kazakhstan's approval.