Republic of Moldova to Invest $55 Million in Agricultural Sector Development

The Republic of Moldova is set to invest $55 million in the development of its agricultural sector by the year 2029. To achieve this, the country will secure a loan from the International Bank for Reconstruction and Development as part of the “Investment in Governance, Growth, and Resilience in Agriculture (AGGRI)” project. The Cabinet of Ministers has approved the draft law for the ratification of the loan agreement.

Out of the total amount, $21 million will be granted to farmers to stimulate initiatives aimed at promoting and developing the livestock and horticultural sectors. Another $25 million will be allocated for the rehabilitation of primary and secondary irrigation infrastructure.

Furthermore, approximately $6.5 million is planned to strengthen the capacities of the Intervention and Payment Agency for Agriculture and the National Agency for Food Safety. The establishment of the Agriculture Consultancy Center and Veterinary Centers of Excellence will also be supported using part of the allocated funds. Approximately $2.5 million will be dedicated to project management.

The government emphasizes that financial resources will contribute to improving the quality of agricultural services, enhancing the resilience and productivity of agricultural enterprises. It will also reduce vulnerability to drought by expanding the availability of irrigation services for farmers and ensuring effective mechanisms for responding to emerging crises.

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The investment in the agricultural sector is expected to drive economic growth, create employment opportunities, and enhance food security in the Republic of Moldova. By providing financial support to farmers and improving infrastructure, the government aims to boost agricultural production, increase exports, and enhance the competitiveness of Moldovan agricultural products on both domestic and international markets.

Additionally, the project aims to strengthen the capacity of relevant institutions in the agricultural sector, ensuring effective governance, compliance with food safety standards, and the provision of quality services to farmers.

The implementation of the AGGRI project will be closely monitored by the government to ensure the efficient use of funds and the timely completion of planned activities. Regular evaluations and assessments will be conducted to measure the impact of the investments on the agricultural sector’s development and the well-being of farmers.