Moldova’s Fund of Funds Gets New Push to Boost Investment

The Fund of Funds will receive a new boost

Businesses in the Republic of Moldova are set to have greater access to capital for growth and development through the creation of the Fund of Funds. To promote this initiative, representatives of the Ministry of Economic Development and Digitalisation held consultations in Washington and New York with international financial organisations and investment funds.

Natalia Selevestru

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The delegation was led by Natalia Selevestru, State Secretary at the Ministry of Economic Development and Digitalisation. During the visit, meetings were held with the International Finance Corporation (IFC), the US International Development Finance Corporation (DFC), Rockefeller Philanthropy Advisors, the Ukraine-Moldova American Enterprise Fund (UMAEF), Open Society Foundations, Malk Partners and Trimtab Impact.

The parties identified several priorities for the development of the Fund of Funds. These include identifying companies ready to attract investment, supporting businesses in improving corporate governance and financial reporting, attracting experienced fund managers from the region, and building local teams.

Furthermore, participants in the consultations analysed the required size of the funds to ensure they can operate effectively. The Ministry of Economic Development and Digitalisation intends to use the recommendations received to refine the next stages of the Fund of Funds’ development.

As previously reported by Logos Press, the Fund of Funds operates within the framework of the Fund for Entrepreneurship and Economic Growth of Moldova (FACEM) and is managed by the Organisation for the Development of Entrepreneurship (ODA). Under this mechanism, the ODA provides financial guarantees to investment partners, who attract private capital and channel it towards financing small and medium-sized enterprises. For every leu of public funds, investors are required to attract at least three lei in private investment. The new instrument was created to develop the capital market and expand access to finance for start-ups and small and medium-sized enterprises with high growth potential.

This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.

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