Creating Job OpportuniUes through lmproved Market Systems (IMS)

Moldova's economic development has been deeply influenced by massive population outmigration and brain-drain. This led to slow jobless growth, driven by consumption and remittances, and low productivity.

With GDP per capita at purchasing power parity of USO 5'710, Moldova remains the paarest country in Europe. The Moldova Employment Strategy plans to achieve a rate of 44% by 2021. Currently the employment rate stands at 42% in 2018 (28% for youth aged 15-29). Gainful employment opportunities are needed especially out of the capital where 80% of the poorer population live. Therefore performance of private companies must improve, especially of the small and medium enterprises (SMEs) and in rural areas. High scarcity of adequately skilled workforce is a key bottleneck. The education system does not correspond to the market needs, leading to significant mismatch between skills supply and demand.

Warnen and men, in particular excluded groups, benefit from improved economic opportunities.

Stakeholders of the private, public, and civil society sectors at different levels, through which key systemic constraints identified by the project can be addressed in an adequate and sustainable way, once their capacity is enhanced. These include: businesses, chambers of commerce, business associations, service providers (financial, intermediation, training), regional development agency and ministries.

Outcome 1: Private enterprises in selected sectors improve their performance and create new economic opportunities.

Outcome 2: Warnen and men, in particular from excluded groups, are able to take up new economic opportunities.

Resultados previstos:  

Private sector businesses adopt new or improved business models.

Public and private actors on national and regional level collaborate to improve the policy and business enabling environment for businesses in selected sectors.

Warnen and rnen, including those from excluded groups, have access to and make use of new and improved information sources and services to enhance their ability to engage in available economic opportunities.

Relevant skills development services are available to women and men, including those from excluded groups.

Resultados de las fases anteriores:  

The main results of the preparatory phase were: development of sector strategies and designing and piloting of interventions in two selected sectors - Information and Comunication Technologies (ICT) and Agriculture and Food Processing.

The pilot interventions provide clear indication of commitrrient and owmership from private sector actors and demonstrate potential for scaling up. E.g., the testing of a new business model aiming to ensure a consistent supply of raw materials (through improved coordination between farmers and processors) resulted in 20 farmers (with a total of 75 hectares of land) being contracted by two companies which produce and export canned vegetables and frozen berries. This can be scaled up to 500 farmers.

Helvetas Swiss lntercooperation (HSI) is the implementing partner. The Chamber of Commerce and lndustry (CCI) of the Republic of Moldova is a strategic partner of HSI, sub-contracted for policy and reform, and regional integration process. Mesopartner, an international organisation, is sub-contracted for capacity building on Market Systems Development (MSD) approach and other strategic advice.

The project established good coordination with the GIZ project co-funded by SDC (on business environment, investment attraction, enhanced employability).

IMS coordinates also with other SDC-funded projects that focus on enhancing socio-economic development at local and rural levels (irnplemented by SKAT, UNDP, UNFPA and Council of Europe). The project will coordinate with other like-minded development partners that promote private sector development (USA, Sweden, EU, World Bank, IFC, EBRD).

Fase 1 01.03.2018 - 31.12.2022   (Completed)