February 18 (SeeNews) - IFC, a member of the World Bank Group, said that it has launched a new phase of its Investment Climate Reform Project to help bolster the competitiveness of Moldova's agricultural market, while also aiming to support increased exports to the EU, thus creating jobs and driving economic growth.
The cooperation agreement between IFC and Moldova's agriculture, regional development and environment ministry will be implemented in partnership with Sweden's government agency for development cooperation (SIDA), IFC said on Wednesday.
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Moldova's existing association agreement with the EU enables local businesses to export to European markets, but 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, the IFC explained.
IFC has also said that it 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.
According to the organisation, 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.
"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," IFC's regional manager for Ukraine, Belarus, and Moldova Jason Pellmar said. "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, a member of the World Bank Group, is a global development institution focused on the private sector in emerging markets which works in more than 100 countries. In fiscal year 2020, the IFC invested $22 billion (18.23 billion euro) in private companies and financial institutions in developing countries.
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