The grant would be used to scale up the FACEM refinancing facility and thereby facilitate access for SMEs to affordable loans through partner financial institutions for investments with the aim of: 

• Boosting productivity (e.g. automation, digitalization) and competitiveness 

• Strengthening local value generation and supply chain 

• Raising standards for access to the global market (esp. EU) 

• Specific for this follow up phase: Improving SMEs’ energy efficiency/EE and energy resilience (e.g. via replacing old with new machinery/technology or investments into renewable energies/RE).

The development of the specific financial product under this phase is planned for the first half of 2026.

The SME sector in Moldova represents a vital yet underperforming pillar of the economy. Comprising 98.6% of all businesses and employing 60% of the workforce, contribute 48% to the GDP, but SME loans to GDP remains disproportionately low at less than 30% (OECD and EBRD 2023:23; World Bank Open Data (n.d.)). The disparity between SME representation and lending participation highlights structural inefficiencies and productivity gaps in the sector. Despite these challenges, SMEs hold significant potential for economic growth. Therefore, in 2024 the Federal Republic of Germany allocated additional EUR 20 million grant as a follow up phase for the “SME Development Facility of Moldova” project managed by KfW and implemented by ODA.

Nationwide, except Transnistria region.

Expanding the range of affordable financing solutions for SMEs in the Republic of Moldova to stimulate investment.

SMEs from Republic of Moldova

Public Institution Organisation for Entrepreneurship Development (ODA)

Ministry of Economic Development and Digitalization