Fagura Moldova became one of the 5 winners of the prestigious USAID Digi Award 2023 - Digital Development Awards (Digis).
Minister of Economic Development and Digitalization, Dumitru Alaiba announced this, expressing gratitude for the support of the United States Agency for International Development (USAID), which helps Moldova in key areas of economic growth. According to the USAID announcement, Digis recognizes and acknowledges USAID projects and activities that encompass the agency's strategic goals of improving development outcomes and humanitarian assistance through the use of digital technologies and strengthening open, secure and inclusive digital ecosystems. Fagura Moldova was one of 5 winners of Digis 2023, developed through support from the USAID/Moldova: Future Technologies Activity program implemented by Chemonics to support a community-based digital bank in Moldova called Fagura to accelerate access to non-traditional banking services and credit, empowering SMEs across the country to transform their ideas into business opportunities. As USAID notes, in Moldova, lack of access to finance is holding back new businesses and reducing job creation opportunities, ultimately hindering the country's economic progress. Regional conflict, inflation, and skyrocketing gas prices, among other factors, have made it more difficult for businesses in Moldova to access traditional financing, as banks prefer operating businesses with proven track records and collateral. These financial constraints perpetuate high unemployment and low income levels, especially in rural areas. It also forces skilled entrepreneurs to seek better prospects abroad, causing a brain drain that continues to negatively impact Moldova's economic growth. As a consequence, more than 1/3 of Moldovan SMEs remain idle or close. Since 2022, the USAID/Moldova: Future Technologies Activity (FTA) program of Chemonics International Inc. has supported Moldova-based community digital bank Fagura, enabling it to expand its services beyond individual borrowers to include businesses. Fagura first entered the market in 2019 with the support of a USAID startup grant and soon after launched the first version of its mobile apps, which led to Fagura being recognized as one of the "highest impact startups" in Moldova. FTA improved and promoted Fagura's digital crowdfunding platform and helped create the Cashback program for SMEs. This program allows micro-businesses to receive a cashback of 20% of the original loan amount if it is repaid within 2 years. With FTA's support, Fagura continues to have a far-reaching positive impact on SMEs by granting them greater access to microcredit by accelerating access and acceptance of non-traditional banking services and loans. The platform improvements and advertising campaign supported by FTA have strengthened Fagura's collaboration with public institutions: the Entrepreneurship Development Organization of Moldova, Infodebit Moldova, the National Bureau of Credit Histories, the Ministry of Economic Development and Digitalization, and the National Bank. In the first 6 months since its launch in May 2023, the Fagura Cashback program for SMEs has attracted 100 companies from industries such as IT, e-commerce and creativity that would otherwise not have access to business loans. They also raised $754 thousand, demonstrating the demand and effectiveness of the FTA platform and advertising campaign. Fagura also provides a mechanism for small investors from the Diaspora or abroad to invest in Moldova's economic development, resulting in the mobilization of local financial resources. Fagura's peer-to-peer lending model supports a symbiotic ecosystem of alternative finance and investment emphasized by trust and collective growth. As USAID notes, the collaboration demonstrates the potential of innovative financial technologies combined with strategic support to close the financing gap and help startups and small businesses thrive and grow. // 10.05.2024 - InfoMarket.
