The Government of the Federal Republic of Germany will provide 10.7 million euros as a grant to the Republic of Moldova for the development of small and medium-sized enterprises (SMEs).
10.7 million euros in the form of a grant will be provided to support the development of small and medium-sized enterprises (SMEs) in the Republic of Moldova by the Ministry for Economic Cooperation and Development BMZ of the Federal Republic of Germany through the German Development Bank (KfW)).
From August 7th to August 11th, 2023, the Evaluation Mission of the German Development Bank (KfW) took place in Chișinău, comprising representatives from the KfW Central Office in Germany, the German Embassy in Chișinău, and the KfW Office in the Republic of Moldova.
In the context of this, a series of meetings took place with representatives from the Ministry of Economic Development and Digitalization, the Ministry of Finance, and the Organization for Entrepreneurship Development (ODA), as well as with other relevant national entities within the scope of the future development project.
The objective of the Mission was to analyze and evaluate, in collaboration with the relevant national authorities, the future prospects of the project in order to determine its feasibility, benefits, and associated risks.
The Small and Medium-sized Enterprises Development Facilitation Project in the Republic of Moldova will be financed by the Government of the Federal Republic of Germany to support the Republic of Moldova in its efforts to promote sustainable economic development, in accordance with the Moldovan-German Government Negotiations on Development Cooperation held in July 2023. The project envisages providing a grant of 10.7 million euros as part of the Stability Pact for Southeastern Europe, with the aim of improving access to financing for SMEs, in their capacity as promoters of economic growth and job creation.
According to the discussions, the grant will be exclusively used for refinancing investment loans provided to SMEs through the Entrepreneurship and Economic Growth Fund (FACEM), managed by ODA. The mission concluded with the signing of a Protocol outlining the future actions required to achieve the proposed development objective, as well as the performance indicators that will form the basis of the Project’s implementation.
The project will have a duration of 3 years and will be implemented and managed by the Entrepreneurship Development Organization.