Investment impact will become visible after 18 months, Dumitru Vicol
The announcement of approximately one billion euros in investments on June 5 at the Republic of Moldova - European Union Investment Conference demonstrates the strong trust the European community has in the authorities of Chisinau. The reforms implemented in recent years have exceeded Brussels' expectations, leading to heightened interest among European investors in the national economy.
The investment conference was organized to mark the one-year anniversary of the signing of the Growth Plan, which has a budget of 1.9 billion euros.
The first tranche, amounting to one billion euros, consists of European funds and private capital. This funding will be directed towards projects designed to accelerate economic growth in areas where the Republic of Moldova can add significant value. Dumitru Vicol, an economist and financial analyst, discussed this on the "Bună dimineața" show on Moldova 1.
The European Union will invest up to 640 million euros, complemented by private-sector investments from the Government of the Republic of Moldova totalling 364 million euros, bringing the total investment to over 1 billion euros.
Dumitru Vicol stated, “The investments are made possible due to the remarkable achievement of a 93% implementation rate for reforms, which surpasses that of the Western Balkan states. We have effectively done our homework, and this is a testament to the work done by the Government.”
This progress positions the Republic of Moldova two or three steps ahead of the Western Balkans, which encourages investors to choose Moldova, “because we are closer to becoming EU members,” Vicol added.
The key sectors set to benefit from these substantial investments include agricultural processing, infrastructure, and industrial technologies, all of which have significant economic potential.
Dumitru Vicol warns that the money injected into the economy will not have an immediate effect. According to his forecast, the impacts of economic growth will become visible after at least a year.
“Each announced investment will take time to materialize and create jobs. The Republic of Moldova can attract funding, but it is essential to change people's perceptions. Even small investments can lead to larger ones. For the average citizen, the results will likely be visible in 12 to 18 months,” explained the analyst.
The promised investments will definitely be realized, but “everything depends on us and how quickly we can utilize the allocated funds,” stated Dumitru Vicol. He added, “Fortunately, we have colleagues from Romania who can guide us on how to avoid their mistakes and improve our ability to absorb European funds.”
As paradoxical as it may seem, the successive crises from 2021 to the present have fostered robust mechanisms to redirect investment.
"We started the year with a positive outlook; experts were optimistic. However, the war in the Middle East disrupted everything. We are facing a series of interconnected crises on an international scale. Fortunately, we have already faced older crises and know how to combat them. We have reached a point where, regardless of the crisis, we continue to invest in infrastructure," concluded Vicol.
At the EU-Republic of Moldova Investment Conference, projects valued at over one billion euros were discussed. This event took place one year after the launch of the European Union's Economic Growth Plan for the Republic of Moldova.
The Growth Plan offers financial support of up to 1.9 billion euros for the period from 2025 to 2027 and is regarded as the largest economic support package ever provided to the Republic of Moldova by the European Union.
