Moldova

IFAD Asset Request Portlet

Country

Republic of Moldova

8

Projects Includes planned, ongoing and closed projects

US$ 251.72 million

Total Project Cost

US$ 130 million

Total IFAD financing

146,531

Households impacted

The Context

The Republic of Moldova is a small landlocked country bordered by Ukraine and Romania, with a population of approximately 3.5  million people in 2019, and a gross domestic product per capita of US$3,227 in 2018. Since the early 2000s, economic growth has averaged 4.6 per cent annually. The economy grew by 3.6 per cent in 2019, driven by investment, private consumption, higher wages, and social benefits. Remittances are crucial in developing the economy and account for 16 per cent of Gross Domestic Product (GDP) in 2019.

Economic growth, remittances and social assistance have significantly reduced poverty levels in the country. The absolute national poverty rate fell from its peak of 73 per cent in 1999 to nine per cent in 2019, and the extreme poverty rate declined from 59.7 per cent to 0.2 per cent in the same period.

This was attained as a result of the country’s economic growth, increased remittances and the social assistance programmes, ran by the government, targeting extreme poor and poor households. Moreover, concrete measures taken in the area of agriculture modernization and small and medium enterprise development, had created job opportunities for rural labour. Large gaps remain, however, with 80 per cent of the poor coming from rural areas in 2016.

Migration has indirect adverse effect on the economy and social fabric of Moldova, with rural areas being particularly hard hit as two-thirds of all immigrants are in these areas, majority of them in the most productive age. Recent analysis and surveys tend to show that migration patterns evolve towards a diversification of destinations (EU notably) and duration, with higher increase in seasonal migrations.

Moldova’s large-scale out-migration, combined with decreasing fertility rates, has led to a drastic decline in the population and increased the share of elderly people. As a consequence, there is a tangible need to create employment opportunities and develop rural economy if it is to stem the outflow of migrants and counter the adverse effects of reduced remittances flows.

The Strategy

In Moldova, IFAD projects support the development of links between agricultural producers, markets and suppliers. IFAD tries to improve the access of rural population to well needed financial services, develop market intermediaries, and enhance the availability of advice to financial institutions and businesses.

Accordingly, IFAD is promoting more resilient livelihoods in marginal rural areas by supporting climate-smart agriculture, economic diversification, talent retention and access to rural finance.

IFAD’s overall goal is to assist the productive poor in taking advantage of the opportunities emerging from the ongoing rural transformation in the country.

IFAD Country Strategic Opportunities Programme (COSOP 2019-2024) has two strategic objectives:

  1. improve the adaptive capacity of smallholders and agribusinesses through market-driven investments. This is done by enhancing farmer’s resilience through investments in productive rural infrastructure and agri-systems.
  2. promote inclusive market linkages through enhanced access to financial services and markets in order to foster rural transformation.

IFAD sees strong potential to revitalize crop production and processing for both domestic and export markets. IFAD has systematically invested in agricultural processing and infrastructure rehabilitation in Moldova with focus on climate resilient infrastructure. 

While contributing to the UN Coordination Team’s efforts to support the Government of Moldova and its National Development Strategy “Moldova 2030”, IFAD’s investments are aligned with the UN’s Sustainable Development Goals and more specifically, contribute to the achievement of: (SDG 1) no poverty, (SDG 2) zero hunger, (SDG 5) gender equality, (SDG 6) clean water and sanitation and (SDG 13) climate action..

Amongst its operations in the country, an important partnership has been developed with the National Commission for Financial Market (NCFM), with the aim to develop a regulatory framework for partnering financial institutions and to assist Saving and Credit Associations in becoming more efficient and credible as a financial service provider.

In addition, South-South and Triangular Cooperation (SSTC) is an important pillar of join efforts to support Moldova. IFAD is at the origin of several SSTC initiatives including a regional grant (in Armenia, Georgia and Moldova), promoting knowledge and experience sharing in the area of the establishment of agricultural cooperatives. Another ongoing regional grant (implemented in Moldova, Morocco and Sudan), in partnership with ICARDA, intends to strengthen Monitoring and Evaluation as well as Knowledge Management skills among selected national institutions within the three countries.

 

Country Facts

  • Agriculture and food processing industry sectors are among the main growth drivers of Moldovan economy. It constitutes around 18 per cent of GDP and 50 per cent of total exports originate in agriculture and food products.
  • Remittances accounted for 16 per cent of Gross Domestic Product in 2019.
  • Agriculture production and processing, farmers’ income and access to inputs are the most critical areas to support especially in the aftermath of the COVID-19 outbreak.

Country documents

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Projects and Programmes

Projects Browser

PLANNED Under design after concept note approval

APPROVED Approved by the Executive Board or IFAD President

SIGNED Financing agreements signed

ONGOING Under implementation

CLOSED Completed/closed projects

No matching projects were found
No matching projects were found
No matching projects were found

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IFAD-supported project to boost resilience and rural economic opportunities in Moldova

April 2017 - NEWS
The International Fund for Agricultural Development (IFAD) and Moldova today signed an agreement to fund a new project aimed at driving the transformation of the country's rural economy and helping to generate employment for over 44,000 poor rural people.

A boost for climate change resilience in Moldova

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IFAD loan and grant of US$16.6 million to strengthen investments in rural economy Rome, 20 February 2014 – The International Fund for Agricultural Development

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Helping remittances reach rural areas in Moldova

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For some time now, it has been difficult to find well-paid work in Moldova. Most of the good jobs available are concentrated in the cities, resulting in significant migration out of the country’s rural areas.

No place like home: Moldovan youth bring business to the countryside

November 2020 - STORY
Moldova’s agriculture sector is increasingly developing and modernizing. This is due both to an increased presence in lucrative markets like the European Union and to the efforts deployed by IFAD and the Government of Moldova to help restructure the sector, largely through sustained investments and financial support to small-scale farmers, to accompany this modernization.

Financing for young farmers in the Republic of Moldova

October 2016 - STORY
Young women and men in rural areas of the Republic of Moldova are making good use of advantageous credit lines and other benefits offered by an IFAD supported project.

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