Chisinau, Moldova, February 17, 2021— IFC, a member of the World Bank Group, launched a new phase of the Investment Climate Reform Project today 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.
"I am confident that the project's successful implementation will contribute to a robust and competitive agricultural sector in Moldova, opening up the EU market for products of animal origin, including lab capacity, IT systems, and regulatory framework regarding traceability and safety. IFC's advisory services will also strengthen the capacity of institutions involved in this segment. We are further grateful to the government of Sweden for their strong support of these crucial programs," said Ion Perju, the Minister of Agriculture, Regional Development and Environment of the Republic of 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.
"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," said Jason Pellmar, IFC's Regional Manager for Ukraine, Belarus, and Moldova. "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.
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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About SIDA
Sida is an authority under the jurisdiction of the Swedish Ministry for Foreign Affairs. The Swedish development cooperation is part of a global cooperation in which Sweden is one of many international participants. In order to carry out its work, Sida cooperates with Swedish government agencies, organizations and associations, and international bodies like the United Nations, the European Union, and the World Bank. For more information, visit www.sida.se
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