Country
Republic Of Moldova

Local project partner
NCASCA - Central Association of Savings and Credit Cooperatives
Moldovan Farmers' Federation (NFFM)
Chamber of Commerce and Industry of Moldova (CCI)
Agricultural Development Agency (ADMA)
Research Institute for Field Crops "Selectia
Technical University of Moldova (TUM)

German project partner
Sparkasse Allgäu

Donor
BMZ

Duration
01.09.2020 - 31.12.2025

The Republic of Moldova is one of the poorest countries in Europe. More than half of the population lives in rural areas. Massive out-migration from rural areas, limited investment in agriculture, limited access to financial services, weak levels of organisation of agricultural producers, longstanding permanent farming and current changes in climate change place a significant burden on the agricultural sector. In view of these challenges, the Government of the Republic of Moldova has formulated sustainable rural development as a key pillar of the national development strategy.

The need for investment in rural development is countered by the lack of access to finance for most farmers. In addition, many farmers are not yet aware of the long-term benefits of investing in climate-adaptive technology and technological processes, so they remain sceptical about new agricultural methods.

The overall objective of the project is to strengthen a sustainable, resilient agricultural system in the Republic of Moldova by increasing the financial and managerial competencies of agricultural MSMEs (economic sustainability) and empowering them to adapt to climate change and conserve biodiversity and natural livelihoods (environmental sustainability).

The project objective is to strengthen the development potential of rural regions in the Republic of Moldova by supporting an adequate supply of financial services, especially for investments in climate-adaptive measures, and to improve the financial utilisation skills of the rural population and enterprises (MSMEs).

Tasks

• Professionalise the savings and credit cooperative sector and the National Central Association of Savings and Credit Cooperatives (NCASCA) to provide responsible and demand-driven financial services to rural agricultural MSMEs.
• Systematic provision of a sustainable range of financial and entrepreneurial education and advisory services to rural agricultural MSMEs and potential young entrepreneurs through the project partners.
• Motivating and empowering the rural population and financial service providers to use/offer financial services in such a way that they strive for sustainable climate resilience when investing.