Moldova offers up to 75% grant-backs for strategic investment
The Republic of Moldova is stepping up its efforts to become a regional investment hub. It has launched a major state aid scheme valued at 4 billion Moldovan lei (approximately $225 million).
The goal is to aggressively compete for large domestic and foreign investors by offering a powerful incentive: companies can recover more than half of their capital investment.
The new program promises significant grant-backs and tax incentives. To qualify, the minimum investment must exceed 10 million lei (around $560,000) and target one of the Government’s six defined priority sectors, according to Natalia Bejan, director of the Investment Agency.
These strategic sectors are: the electronics industry, machine building and auto components, chemical and pharmaceutical manufacturing, construction materials, the textile and clothing industry, and agro-food processing.
High Incentives for Regional Development
The core of the scheme involves generous recovery rates. Large enterprises are eligible to receive back up to 60% of their eligible costs, while small enterprises can secure up to 75%. Ms. Bejan noted that a key aspect of the scheme is a geographical difference designed to drive economic development outside the capital.
"Companies that choose to invest in Chișinău or near the capital cannot benefit from more than 50%," Bejan explained. "This rule was established specifically to stimulate industrialization and growth in other, less-developed regions."
The entire state aid scheme is engineered to focus on activities that generate true added value in the economy, moving beyond simple raw production.
"We aim for the highest possible output and high labor productivity," the Investment Agency director stated. "For instance, it is not just about growing wheat; it is about processing it, making flour, building a mill, and generating that added value."
Ultimately, the focus is on creating high-value jobs for citizens. "We expect every investment to generate well-paid jobs," Natalia Bejan said. She stressed the quality-over-quantity principle: "We do not need 10,000 poorly paid jobs—it is better to create 1,000 that offer competitive salaries."
Translation by Iurie Tataru
