IFC, a member of the World Bank Group, launched a new phase of the Investment Climate Reform Project to help bolster the competitiveness of Moldova’s agricultural market, while also aiming to support increased exports to the European Union (EU), thus creating jobs and driving economic growth.
The Cooperation Agreement between IFC and the Ministry of Agriculture, Regional Development and Environment of the Republic of Moldova, will be implemented in partnership with Sweden’s government agency for development cooperation (SIDA).
Moldova’s existing Association Agreement with the EU enables local businesses to export to European markets.
However, many local agro-food producers are unable to comply with the animal health and food safety requirements.
This can be attributed to the lack of specific legislation and monitoring programs that are EU-compliant.
IFC has already helped Moldova’s government to streamline agribusiness regulations during the first phase of its Investment Climate Reform Project.
Building on these efforts, IFC now aims to create a conducive business environment in the country, introducing the necessary legislation, including in areas of products safety, animal by-products and waste management, and food traceability.
This will help create a solid enabling environment for agro-food producers to boost exports across countries, including the EU market, currently closed to products of animal origin from Moldova.
In Moldova, one of the challenges includes the lack of available data on potential investees and business partners.
To address this issue, IFC will also help create a digital Public Depository of Financial Statements, providing public access to financial statements of both private and state-owned companies.
This will ensure increased transparency of the process, drawing more investments to Moldova’s agribusiness sector and creating commercial links to the business community.
Jason Pellmar, IFC’s Regional Manager for Ukraine, Belarus, and Moldova, stated: “One of IFC’s strategic priorities in Moldova is to strengthen its agribusiness sector. Our aim is to help the nation take fuller advantage of the Deep and Comprehensive Free Trade Agreement with the EU. This will allow the country to explore other international markets at lower cost and effort.”
Jason added: “Digital solutions will not only create incentives for businesses to establish ties with Moldovan companies, but also encourage and retain investments, helping foster competitive markets and accelerate economic growth.”
IFC’s investment and advisory work in Moldova builds on more than a decade of experience in the agricultural sector to enhance the entire agribusiness value chain, develop competitive local agribusinesses, promote export opportunities, and foster food security.