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Economic Growth

Language: English | Romanian
USAID works with the public and private sectors in Moldova to achieve broad-based economic growth, reduce poverty, and strengthen the market economy. USAID works with industry associations to help improve the efficiency of key industries and increase the private sector’s competitiveness in regional markets. USAID works on improving the competitiveness of Moldovan high value agriculture by strengthening targeted fruit and vegetable value chains at the marketing, production, and policy levels. USAID is institutionalizing a process of continuous improvement in the business enabling environment, while also achieving specific and measurable reforms in those areas of greatest concern to the business community.  

Current activities:

Moldova Competitiveness Project (MCP)
Implementer: Chemonics International, Inc.
Project Period: 10/2015 – 09/2020

The Moldova Competitiveness Project (MCP) supports the Republic of Moldova’s efforts to promote a strong, diverse and export-oriented economy by improving competitiveness and efficiency in key Moldovan industries. MCP’s focus is on: Information and Communications Technology (ICT) clustered with creative services and precision engineering; wine production and export clustered with the tourism sector; and light industry (clustered textiles and apparel with footwear sectors). The project supports these industries so that they reach a maturity level that promotes sustainable improvements in the competitiveness of these sectors and provides well-paying and desirable employment—thereby increasing incomes, alleviating poverty and reducing emigration.

MCP interventions will contribute to increased productivity, improved product quality, expanded market linkages, and an improved sector-enabling environment for targeted industries. The project will focus on improving the quality of Moldovan products and services so that Moldova’s private sector can compete within the EU and other higher-value markets. Expanded market linkages created through MCP engagement will lead to increases both in the value of exports and in domestic sales in targeted industries. Increased technical skills in the labor force will contribute to targeted industries’ efforts to expand and developnew investments.

Development Credit Authority (DCA)
Financial Institutions-Partners: Prime Capital, Comertbank, Rural Finance Corporation
Timeframe: 09/2011 – 04/2028

The Development Credit Authority (DCA) enables Moldovan financial institutions to increase financing for local small and medium size enterprises (SMEs) through a loan guarantee mechanism. These guarantee agreements support lending in the SME, energy and Information and Communications Technology (ICT) target areas. An increase in the availability of credit will improve the competitiveness of the private sector and advance economic opportunities.

In Moldova, current DCA programs include two guarantee facilities with Prime Capital. The first one supports the Moldovan Information Technology (IT) sector. Through this guarantee, USAID/Moldova aims to increase loans to IT firms for capital and long-term investments and to support loans to IT professionals for mortgages and long-term asset financing. This will improve quality of life and provide continued support to committed investment in the country (e.g., home ownership), thus reducing emigration of the ICT sector’s skilled labor. This guarantee is in direct support of USAID’s Competitiveness Project.

In 2014, USAID/Moldova and Swedish International Development Cooperation Agency (Sida) launched a second guarantee with Prime Capital to support lending to the energy sector. The objective of this guarantee is to improve the operational efficiency of MSMEs in Moldova in order to strengthen their commercial viability and growth in an environmentally sustainable manner, thus contributing to job creation and increased living standards. The Project also aims to allow individuals to improve their energy efficiency, affecting cost savings, benefiting energy use in Moldova, and in turn, increasing living standards.

ICT Excellence Center (ICTEC) Project
Implementer: Information Technology and Communications Association (ATIC)
Project Period: 08/2015 – 08/2018

Under this project USAID will launch and develop, together with a number of strategic partners, an ICT Excellence Center in Moldova. The activity will contribute to USAID’s economic growth objective under the Private Sector Competitiveness Program area of the U.S. Foreign Assistance Framework. The activity will be implemented in collaboration with the private sector and government, using the Global Development Alliance (GDA) model. GDAs are USAID’s premiere model for public-private partnerships and help to improve the social and economic conditions in developing countries, deepening USAID’s development impact.  

A USAID grant for the development of an ICT Excellence Center (ICTEC) will be matched by both cash and in-kind contributions, by private and government partners, that will bring significant new resources, ideas, software, technologies and development activities, such as trainings, practical assignments and mentoring programs. Private partners include multinational companies such as IBM and Microsoft; Information Technology and Communications Association (ATIC) members representing  local ICT companies; and government partners such as the Ministry of ICT, the Ministry of Education, the e-Government Center and Technical University of Moldova. The Technical University of Moldova will host the Center on its premises. The agreement was signed with ATIC on August 25, 2015.

This will be a 36-month project. During the 36 months the project will: 1) support the setup and equipment needs of the facility; 2) support the creation of a business plan integrating relevant IT educational content and entrepreneurship activities; 3) train and prepare qualified staff; and 4) initiate and expand educational, training and entrepreneurship development activities.

Western NIS Enterprise Fund (WNISEF)/Horizon Capital
Project Period: 09/1994 - 12/2023

In 1994 USAID created WNISEF, a regional $150 million private equity fund investing in SMEs in Ukraine and Moldova. Since its inception, WNISEF has invested $197.4 million in over 118 companies in the region that employ about 25,000 people, and has provided training to hundreds of local managers. It has also helped unlock a total of $1.4 billion in capital for SMEs via WNISEF, the Emerging Europe Growth Fund (EEGF) follow-on fund, and EEGFII. In 2014, USAID directed WNISEF funds toward promoting policies and practices that support private sector development. The focus areas include economic leadership, local economic development, social investment and export promotion. Presently, Horizon Capital is raising its third fund — EEGFIII — with WNISEF and is contributing up to $30 million in investment capital.

EMERGING DONORS CHALLENGE FUND GRANTS

The United States Government, through USAID, is partnering with the 10 “Emerging Donor” countries (Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia) to co-fund projects in Eurasia and the Balkans.  This will enable the recipient countries to benefit from the successful experiences of the Emerging Donors in their democratic and economic transitions.

Development of a National Wine and Vine Registry for Moldova
Implementer: The National Agency for Rural Development (ACSA)
Project Period: 01/2015 – 01/2017

This is a project jointly funded by Czech AID and USAID through the Emerging Donors Challenge Fund (EDCF). The project is expected to establish a Wine and Vine Register aligned with the acquis communautaire that will both enable the traceability of wine production within Moldova and help to further open EU markets to winemakers. The project will help stabilize the legal environment in this area, contributing to improved conditions for foreign investment.  The project will also harmonize the drafting of relevant legislation, ensuring the successful implementation and use of the Wine and Vine register of Moldova by the National Office for Wine and Vine and the establishment of appropriate oversight of the vine owners/holders responsible for submitting mandatory vine declarations and product traceability.  Finally, the project will strengthen capacity to efficiently implement and manage the Vine Register according to the EU acquis communitaire.  USAID has selected the local Moldovan organization Agency for Consultations and Studies in Agriculture (ACSA) as its implementing partner to ensure local ownership and sustainability.

Export-led Development of Organic Agriculture in Moldova
Implementer: People in Need (PIN)
Project Period: 09/2016 – 09/2018

The Export-led Development of Organic Agriculture in Moldova continues and expands the previous support for organic agriculture in Moldova with a special focus on the following areas:

  • preparation of Moldovan farmers to export organic products;
  • development of the local organic market and enabling environment;
  • development of sustainable extension services in organic agriculture in Moldova; and
  • sustainability advancement of the entire sector and preparation of an exit strategy for foreign donors assisting this sector.

This activity is funded under the Emerging Donor Challenge Grant Fund in cooperation with the Czech Development Agency.

Last updated: December 01, 2016

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