EU Grants 8 Million Euros to Support Small and Medium-Sized Enterprises in Moldova

A total of 300 small and medium-sized enterprises (SMEs) in Moldova, predominantly from rural areas, will receive non-repayable European funding through the “EU for SMEs” project to create, develop, expand, or internationalize their businesses. To facilitate this, the European Union has allocated 8 million euros in the form of non-repayable funds to co-finance seven state support programs implemented by the Organization for Small and Medium Enterprise Sector Development (ODA).

Dumitru Alaiba, Vice Prime Minister and Minister of Economic Development and Digitization, expressed gratitude to the EU for supporting the development of entrepreneurship in Moldova, ensuring business sustainability, and facilitating integration into the European economic space.

“The European Union continues to support entrepreneurship in Moldova, focusing on developing supportive infrastructure in regions and promoting Moldova’s integration into the European economic space. Through assistance programs and ongoing dialogue, we promote best practices, transparency, and adherence to democratic principles in the economic development process. Through our joint efforts, we are building a better future for citizens and entrepreneurs,” stated Vice Prime Minister and Minister of Economic Development and Digitization, Dumitru Alaiba.

Jānis Mažeiks, Ambassador of the European Union to Moldova, mentioned, “The new grant of eight million euros to support SMEs in Moldova, EU for SMEs, will improve access to non-repayable funds and provide opportunities for much-needed productive investments. We are pleased to contribute through this grant to the implementation of government support programs dedicated to SMEs, and we are confident that the ODA team will make every effort to ensure the success of this initiative. The European Union will continue to support Moldova in developing a stronger economy.”

Dumitru Pîntea, Director of ODA, emphasized the impact of European support on local entrepreneurship. “The support from the European Union significantly contributes to meeting the real needs of the business environment, enhancing competitiveness, modernization, the implementation of European quality standards, and increasing business resilience. Today, we witness a business that accessed European assistance to invest in modernizing and becoming more environmentally friendly.”

The launch event of the European assistance project took place at Cabigrup SRL, one of the first beneficiaries of community support. Cabigrup, located in Băcioi, specializes in the production of wine, bottles, and decorative boxes for alcoholic products.

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“Our company was established in 2003, primarily engaged in producing packaging for alcoholic products. We supply packaging to well-known local brands of spirits and liqueurs. In the meantime, we acquired a winery in the area to produce wines under our own brand. We accessed a European grant of approximately 2 million lei through the Technological Re-equipment and Energy Efficiency Program to modernize our equipment, automate the sterile filtration, bottling, and labeling process of wine bottles,” said Vladimir Cernat, a representative of Cabigrup.

It is worth noting that on May 24, 2023, a direct grant agreement was signed between the EU and ODA, allocating 8 million euros from 2023 to 2026 to supplement the state budget for seven non-repayable funding programs: PARE 1+2, Start for Youth, Greening of SMEs Program, Digital Transformation Program, Technological Re-equipment and Energy Efficiency Program, Female Entrepreneurship Support Program, and Rural Tourism Program.

The objective of the “EU for SMEs” project is to contribute to resilient, sustainable, inclusive economic development and support the ecological transition in Moldova. It will also improve the investment climate, employment capacity, and create a favorable business environment for SMEs, particularly in rural areas.