Moldova Wooing Expats: Grants Fuel Business Return
Moldovans living abroad are increasingly interested in investing in Moldova, bringing with them innovative ideas and fresh approaches that can be adopted in the country.
Agriculture and agribusiness, encompassing processing, services, trade, rural tourism, and information and communication technology, are the most relevant sectors for such investments.
To incentivize investment, the Moldovan government offers grants of up to half a million lei and conducts informational campaigns to raise awareness of available opportunities.
One such example is Nicolae Popovici, a dentist who previously worked in several clinics across Moldova. Due to limited financial resources, he was forced to emigrate. After accumulating capital, he returned to Moldova to open a dental clinic. However, he soon encountered the need for further investment. Through the Pare 1+2 program, he secured a grant of 200,000 lei. The application process was straightforward, he explained, and he used the funds to purchase modern equipment for his clinic.
"The state program's support has been beneficial," Popovici said. "It provides breathing space, allowing for reinvestment in other aspects. Starting a business comes with significant expenses, especially when striving to keep pace with technological and informational advancements." Since 2014, Popovici's business has created 23 jobs.
"We've grown and opened another branch in Cimislia," he said. "We're planning to expand further with a new branch in Chisinau. We're committed to Moldova; we hire locally and have no intention of leaving. Our team has grown from 2 to 25 employees. The situation abroad is not as favourable as it once was, so I have no desire to emigrate again."
Angela Chelaru, who has been running a textile business for nearly 30 years, also benefited from government support. With the help of her son, who has lived in the UK for over eight years, she secured a grant of 250,000 lei. Her company produces biodegradable cleaning wipes and water-repellent tablecloths, competing with imported alternatives.
"While we have older sewing machines, the grant allowed us to acquire specialised equipment essential for our operations," Chelaru explained. "We've also purchased embroidery machines, packaging machinery, and a vehicle for product distribution to stores and customers."
Despite the ease of obtaining the grant, Chelaru faces challenges in recruiting new staff, hindering her goal of creating at least six new jobs. "Finding qualified personnel is the biggest hurdle," she said. "The technical aspects of the application process were very efficient."
Another obstacle is gaining shelf space in stores for her products. "It will take time to see results in supermarkets," she said. "Currently, our biggest challenge is convincing them to stock our products. They claim a lack of shelf space. I spend most of the week in production, with weekends dedicated to selling at the market. Securing placement in stores would significantly improve our profitability. As a business administrator, I could then focus on creative strategies instead of being confined to weekend sales and promotions."
Launched in 2022, the Pare 1+2 program offers financial support of up to 500,000 lei to individuals interested in establishing businesses in Moldova. The program requires entrepreneurs to contribute a minimum of 250,000 lei to qualify for the grant. Since its inception, 113 Moldovans living abroad have invested in Moldova, according to Vadim Codreanu, director of the Organization for Entrepreneurship Development, in an interview with Teleradio-Moldova.
"The total value of supported investments is nearly 40 million lei, with over 26 million lei awarded in grants through the ODA," Codreanu said. "Entrepreneurs are welcome to explore additional programs managed by the ODA and other entities. They are encouraged to learn about available opportunities and benefit from government support."
In most cases, these projects introduce innovative products and services that can be implemented in Moldova. To enhance competitiveness, program participants receive training in business management and benefit from ongoing informational and advisory support.
"For instance, some projects involve the production of previously unavailable food items in Moldova, which were previously imported," Codreanu explained. "Other projects introduce entirely new service solutions, such as catering and entertainment options, which are valuable additions to our market."
The Moldovan Investment Agency organises various events specifically aimed at Moldovans living abroad. These events showcase investment opportunities in Moldova, with the goal of attracting them to the country's investment potential.
Translation by Iurie Tataru
