Western NIS Enterprise Fund, Future Technologies Activity and Moldova IT Park will join forces to stimulate the development of a dynamic and innovative digital ecosystem in Moldova.
In particular, the Western NIS Enterprise Fund (WNISEF), together with Future Technologies Activity (FTA), founded by USAID and Sweden, will support Moldova IT Park in promoting Moldova as a valuable IT destination, using digital technologies to promote the progress of companies and society through innovative methods. As noted in the WNISEF report, it is planned that WNISEF, FTA and Moldova IT Park will work together on two priorities: 1) organizing an annual event that will promote innovation and the results of the residents of the first European e-park with the Digital Solutions Award; and 2) development, promotion and dissemination of an investment guide for the information technology sector in Moldova to provide information about country of origin and a clear roadmap for potential investors and professionals intending to work in Moldova. It is emphasized that Moldova is an attractive place for nearshoring (nearshoring - transfer of production / part of production to neighboring / nearby countries) in South-Eastern Europe, having advantages in terms of price and quality. The value of Moldovan IT exports in 2020 amounted to $258 million, an increase of 23% compared to 2019 and 100% compared to 2006. More than 60% of Moldovan IT exports are directed to Europe, and 20% to America. “The technology sector is of strategic importance for the Moldovan economy and can change the world's perception of Moldova in the era of digital transformation. Moldova IT Park is an organization that brings together the local IT community and, with our support, will be able to have a positive impact on the IT industry across the country,” said WNISEF President and CEO Jaroslawa Johnson. As noted, acting as a cluster facilitator, Moldova IT Park (MITP) provides an organizational platform with a set of innovative tools and new approaches to accelerate the digital transformation of the economy, optimize corporate innovation practices, stimulate the growth of the IT industry, support partnerships, create new jobs and attract both local and foreign investment. MITP improves the regional competitiveness of the Moldovan IT sector by reducing the tax burden on residents through a single tax of 7% on sales revenue, simplifying immigration documentation for expatriates, reducing bureaucratic barriers, and facilitating the virtual presence of residents. Moldova IT Park was launched in 2018, currently 960 technology companies are its residents. Of these, 18.4% are foreign companies owned by 36 countries. More than 14.5 thousand employees work in resident companies with an average monthly salary of 32 thousand lei and a turnover of more than 5.4 billion lei. Moldova IT Park has established itself as a valuable element of the technological and innovation ecosystem. “We focus on providing all the necessary incentives for potential Moldovan investors, attracting highly qualified specialists and start-ups, thanks to an accessible location and a flat tax of 7%. The annual award will serve as an important step in highlighting the most significant innovations and startups that can determine the future of the IT sector,” said MITP Administrator Natalia Dontu. “Information and Communication Technology is the fastest growing export industry in Moldova, with exponential growth driven by a supportive ecosystem and attractive investment incentives such as the 7% sales tax at Moldova IT Park. Further development of this sector as an engine of growth and a factor contributing to the digitalization of the entire economy is a key priority for the government and donors. We look forward to continuing our successful cooperation with MITP and establishing this partnership with WNISEF to promote international investment in the IT sector of Moldova and recognize the innovations and successes of residents,” said Doina Nistor, Director of Chemonics International Moldova, Head of Future Technologies Activity. Moldova IT Park was established in 2018 with an office in Chisinau. Western NIS Enterprise Fund (WNISEF) is the first $150 million regional private equity fund in Ukraine and Moldova based on US government funding through the US Agency for International Development (USAID).He has over 25 years of successful investment experience in SMEs. In total, the fund has invested more than $186 million in 130 companies employing approximately 26,000 people, and made it possible to raise $2 billion for Ukrainian and Moldovan companies. Since 2015, The Future Technologies Activity (FTA) in Moldova, founded by USAID and Sweden, is a 5-year, $32.8 million pilot program that aims to stimulate the development of a digital, creative, and green economy in Moldova. FTA (2021-2026) works in partnership with stakeholders in information and communication technology (ICT), engineering, light industry, creative sectors and digital media, using innovation and new technologies to increase Moldova's competitiveness and integration into global markets. // 14.02.2022 — InfoMarket.
