The United States Agency for International Development (USAID) has unveiled the "Investments for Business Sustainability" project in Ukraine, targeting the creation of 20,000 jobs and increasing enterprise sales by $250 million over the next three years. Announced by Yuliya Vitka, deputy head of the project, during the She Congress 2024 in Kyiv, the initiative focuses on empowering women entrepreneurs and fostering economic resilience.
Funding and Support
- Total Allocation: The US government has committed $93 million to support women's entrepreneurship in Ukraine.
- Current Disbursement: To date, approximately $63 million has been allocated to around 800 small and medium-sized enterprises (SMEs).
- Future Goals: The project aims to double the number of jobs and significantly boost the sales of participating businesses by 2027.
Key Programs
OTP Bank Lending Support
- Objective: Reduce borrowing costs for entrepreneurs.
- Mechanism: Compensates interest rates on loans, making financing more accessible for business expansion.
Activitis Factoring with eDilo Service
- Objective: Facilitate the purchase of goods and equipment.
- Mechanism: Grants cover the cost of purchases in installments with favorable terms, supporting business growth.
Credit Agricole Equipment Leasing
- Objective: Assist businesses in acquiring necessary equipment.
- Mechanism: Provides equipment leasing options with cashback or grant funds, enabling businesses to invest in essential tools.
Empowering Women Entrepreneurs
Yuliya Vitka emphasized the critical role of women in Ukraine's economic reconstruction. The project ensures that 30% to 40% of the supported businesses are women-owned, providing them with the financial tools and resources needed to thrive in a competitive market.
Economic Impact
- Job Creation: The project is set to generate 20,000 new jobs, significantly reducing unemployment and fostering economic stability.
- Sales Growth: With an expected increase of $250 million in enterprise sales, the initiative will enhance the overall business landscape in Ukraine.
- Sustainable Development: By supporting SMEs and women entrepreneurs, USAID promotes sustainable economic growth and resilience against future challenges.
Future Prospects
The Ministry of Agrarian Policy's plans to double hemp cultivation and the interest from major agricultural holdings like Kernel and MHP complement USAID's objectives. These efforts collectively aim to diversify Ukraine's economy, increase production capacities, and attract further investments.
Conclusion
USAID's "Investments for Business Sustainability" project represents a strategic effort to revitalize Ukraine's economy through targeted support for women's entrepreneurship and business growth. By creating jobs and boosting sales, the initiative is poised to make a lasting impact on Ukraine's economic landscape, fostering a more resilient and competitive market.
