EIB-financed private investments in horticulture up from 133 before the pandemic to 265 today
Despite the pandemic with its impact on markets and the limited predictability of investments, Moldovan horticultural producers have continued to make important investments which will shape their future for many years to come. Until today, finance for 265 investments has been allocated in the frame of the EIB Fruit Garden of Moldova credit line, about one third to family farms (Peasant Farms and Individuals) and two thirds to limited-liability companies.
It is striking that half of the investment proposals which received EIB financing have been submitted only after the onset of the pandemic in March 2020. This shows that Moldovan horticultural producers are confident in their future as they are increasingly producing for new markets and new crops, varieties and food products. The latest investments into stone fruits, vegetables, hazelnuts, berries and beekeeping as well as into fruit drying and agro-tourism which were supported by the credit line in 2021 support this trend for diversification.
The amount of finance allocated to private companies via the EIB Fruit Garden of Moldova credit line is currently at 48 million EUR (since the end of 2016 until today of which alone 29.6 million EUR were allocated since the onset of the pandemic in March 2020). EIB finance mobilised another 51.7 million EUR of finance from other sources such as own savings of the entrepreneurs and loans of the banks’ own resources as the EIB credit line only finances up to half of any investment project. Nearly 100 million EUR have therefore been injected into Moldova’s horticulture as a result of the decision of the Government of Moldova and EIB to support this promising sector of the economy.
In addition to this finance for private enterprise development, EIB also allocated 11.4 million EUR for public investments into seven colleges, two universities and the horticultural institute. Colleges are currently receiving new orchards and training halls for processing and machinery use whereas the universities (TUM and ASUM) have heavily invested into better laboratories.
All this investment has been supported by a Technical Assistance project implemented by AFC Agriculture and Finance Consultants. After three years, this 2.1 million EUR project has come to an end of its term. During the past three years, 25 Moldovan and international consultants supported local companies with regards to new technologies and another 24 consultants helped to design the public investments financed by the credit line, make the detailed planning and ensure that national and international standards are kept. The opening of some of the investments in autumn 2021 will serve as evidence of how well the money was spent.