celebrates the results of joint partnerships

Institutional development of business support organisations/business associations, capacity development for private companies in times of crisis and the main results of cross-river partnerships to strengthening a competitive business environment are the topics addressed at “Cross-river synergies for resilient business environment” Forum, conducted on 18 January.

The forum was organised with the support of EU Confidence Building Measures Programme and “Advanced cross-river capacities for trade” project, funded by Sweden and the United Kingdom. Both initiatives are implemented by UNDP Moldova. Over 70 representatives of business support organisations and sectoral associations from both banks participated in the event.

Since 2019, with the financial support of the European Union, UK and Sweden, UNDP Moldova supported 24 initiatives for business support organisations, with a value of approx. €800,000, that were jointly implemented by associations on both banks of the Nistru river. They have promoted knowledge transfer, financial sustainability and diversification of consultancy and mentoring services to better support small and medium-sized enterprises and social entrepreneurship.

As part of the EU Confidence Building Measures Programme, the cross-river partnerships contributed to increased engagement, crisis resilience, digital literacy and resulted in new jobs created and existing jobs maintained, new innovative solutions incorporated into the business model, new consolidated market niches, such as tourist value chains along the Nistru river.

In the framework of the “Advanced crossriver capacities for trade” project, financed by Sweden and the UK, a number of innovative interventions were implemented, to expand access of left-bank businesses to the rightbank export promotion mechanisms and ensure a sustainable path for them. So far, over 1,700 representatives of companies and business associations on both banks of the Nistru river have improved their capacities to better tap the opportunities of foreign trade agreements and have been guided to access new markets. 140 companies benefited from support in digitisation or identification of sales markets and as a result, concluded 45 contracts and increased their exports by 8%.

Cross-river projects contribute to improve business environment by strengthening cooperation with the view to develop viable solutions to the common problems and needs of entrepreneurs on both banks.

The “Cross-river synergies for resilient business environment” Forum showcased business support associations and organisations which enhanced their capacities and developed communities of entrepreneurs. During the event, speakers highlighted the main SMEs support mechanisms on the right bank, which are also accessible to those residing on the left

An online business barometer, relevant to the business communities on both banks of the Nistru, has been launched

On 8 February, www.barometru.md was launched, a portal that analyses the business climate and investment potential on both banks of the Nistru river. The tool was created with the support of the France-Moldova Chamber of Commerce and Industry and the Romanian Investors in the Republic of Moldova Association, in partnership with the Tiraspol Chamber of Commerce and Industry. The European Union co-financed this initiative, through its Confidence Building Programme, implemented by UNDP Moldova.

"I welcome the initiative of this first business barometer, supported by the Moldovan-French Chamber of Commerce and the Association of Romanian Investors from the Republic of Moldova, with the support of UNDP and the European Union. More than the raw numbers, what is interesting is being able to regularly measure the evolution of the perceptions of entrepreneurs. This barometer, which is a useful tool for identifying the expectations of the business community, is intended to contribute to reflections on the promotion of business activities for the development of the Republic of Moldova," said Paul Graham, the Ambassador of France to the Republic of Moldova.

The Ambassador of Romania in Chișinău, Cristian-Leon Țurcanu, declared:

"I want it to be a successful project that continues as long as possible and to involve many companies. It is an open instrument in which each input from each company contributes to the consolidation of this barometer, which first of all aims to provide a clearer and more realistic picture of the investment climate throughout the territory of the Republic of Moldova, which means new possibilities and opportunities for companies that want to operate here."

The platform reflects data provided by 400 economic agents surveyed in the fall of 2022. Large and small companies operating on both banks of the Nistru were surveyed regarding their turnover, investments, profit, increase or decrease in the number of employees, appreciation of the dialogue with the authorities, the general perception about the economic situation. The information presented in the barometer will be updated twice a year.

“Although we are faced with these multiple crises that affect both directly and indirectly the way the business environment in the Republic of Moldova evolves, it is essential to remain strong and able to constantly adapt, taking into account both risks and opportunities,”

said Dan Nuțiu, Executive President of the Romanian Investors Association.

Thus, several surveyed companies stated that they have reduced their investments, have lower turnover and recorded reductions in employees. However, more companies reported increases in profit, compared to the number of those that recorded decreases in this indicator.

“Together with our partners, we offer the Moldovan authorities a new tool for evaluating how entrepreneurs feel about the economic situation, the business climate and the evolution of their company’s situation. Although the barometer does not replace the necessary exchanges that investors have with the authorities, it is based on a serious and independent methodology. It is a complementary decision-making tool that provides insight into the morale of entrepreneurs at a given moment and allows monitoring its evolution over time. We hope that this instrument will be perennial,”

said Emmanuel Skoulios, President of the France-Moldova Chamber of Commerce and Industry.

Among the main problems faced by companies is the increase in prices, including raw materials and other components of production costs. This issue specifically affects at least 78.1% of all surveyed companies. More than 44% of companies have their activity disrupted due to the war in Ukraine, including problems with raw material supplies, transport, market and other aspects. Lack of qualified employees is a challenge for 41% of companies.

The following obstacles were also highlighted: the disruption of sales channels and the difficulty of identifying new customers (35%), high taxes (29%), imperfect legislation (16%), difficult limited access to financing (15%), difficulties encountered in the relationship with state institutions (13%), corruption (8%). Only 0.5% of companies mentioned that they do not face any major problem.