Kyiv, Ukraine, September 21, 2020 — Thousands of local micro, small, and medium-sized enterprises, farmers, homeowners’ associations, and key market players in infrastructure and agriculture across Ukraine benefited from IFC’s investment and advisory programs in fiscal year 2020.
IFC, a member of the World Bank Group, summed up the results of its past fiscal year, ending June 30, assessing its programs aimed at helping foster economic growth, creating jobs, and mitigating the impact of the COVID-19 pandemic in Ukraine. In the past fiscal year, IFC focused on key investments to help address logistics and infrastructure gaps, increase supply of long-term finance, and support domestic food security by helping local producers affected by the pandemic.
In addition to $85 million in long-term investments, IFC deployed approximately $39 million through its Global Trade Finance Program (GTFP), helping to cushion the impact of COVID-19 on trade flows. IFC also implemented an ambitious advisory program of eight comprehensive projects, advising government agencies, industry associations and private companies on attracting foreign and domestic private investment in infrastructure, agriculture, energy and financial sectors through reforms, innovative financial products and programs, as well as public-private partnerships.
“Ukraine is one of the focus markets for IFC’s program in Europe and Central Asia, and we reaffirm our strong commitment to support the country’s growth,” said Wiebke Schloemer, IFC's Director for Europe and Central Asia. “To limit the impact of the current economic slowdown, it is important to remain vigilant to counter the financial disruptions. We stand ready to continue to help the country respond to the new environment via effective and targeted projects.”
Jason Pellmar, IFC’s Regional Manager for Ukraine, Belarus and Moldova, said: “Current growth prospects and the reform agenda in Ukraine are encouraging, though the pace of growth is still weaker than desirable. The current economic crisis, precipitated by the pandemic, has made the need for reform all the more critical so as to attract more domestic and foreign investment. Together with the World Bank, we will continue to progress these reforms to improve Ukraine’s investment climate”.
To help boost infrastructure and agri-logistics:
- Together with the World Bank and the European Bank for Reconstruction and Development, IFC helped Ukraine run a nationwide assessment of its transport sector, the backbone of the country’s economy that accounts for 6.7% of GDP. As a result of the analysis, Ukraine structured and helped tender two port concessions for the Kherson Sea Trade Port and the state-owned Olvia Stevedoring Company , that will leverage a combined $137 million of private investment, consolidating the two ports as important links in an efficient logistics system in Ukraine.
- IFC engaged with Ukrainian cities to attract investments for reliable and efficient public transportation systems, helping modernize tram infrastructure in Kryvyi Rih and high-speed public transport in Kyiv , and introduce environmentally-friendly bus fleets in Mariupol and Lviv, as well as smart-city infrastructure in Zaporizhzhia .
To help combat climate change:
- IFC helped around 16 , 000 Ukrainian households apply for energy efficiency modernization projects valued at about $36.5 million , contributing to the reduction of 19 , 000 metric tons of greenhouse gas emissions annually.
- IFC made its first climate-dedicated investment in Ukraine’s leasing sector, financing OTP Leasing to help Ukrainian leasing market support businesses, especially SMEs.
To ease access to finance, especially for small and medium-sized enterprises :
- IFC helped over 2,000 small farmers in Ukraine gain access to $1 billion of financing through “crop receipts” — an innovative financial instrument that allows farmers to access financing using future harvest as collateral.
- IFC provided a $35 million loan to the country’s leading retail distributor of transportation fuels GalNaftoGaz that supplies underserved farmers with necessary assets during the sowing period, using Crop Receipts.
To help address COVID-19 challenges:
- IFC supported Nyva Pereyaslavshchyny , a leading Ukrainian agricultural producer, as part of its $8 billion global fast-track financing package, announced in March 2020, to support business activity and preserve jobs in the face of pandemic.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org .
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