Country
Republic Of Moldova

Local project partner
NCASCA - Association of savings- and credit cooperatives
FARM - Federation of Agricultural Producers from Moldova
"Selectia" - under the "Alecu Russo" State University of Balti
State Agrarian University of Moldova in Chisinau

German project partner
--

Donor
BMZ

Duration
01.09.2020 - 31.08.2022

The Republic of Moldova is one of the poorest countries in Europe. More than half of the population lives in rural areas. Youth unemployment of over 50% is a particular challenge. The massive outflow of the population from rural areas, limited investment in agriculture, limited access to financial services, weak levels of organization of agricultural enterprises, coupled with many years of permanent farming and current changes in climate change, have put a significant strain on the agricultural sector. The Government of Moldova is aware of these challenges and has formulated the sustainable development of rural areas 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 the vast majority of farmers. In addition, many farms are not yet aware of the long-term benefits of investing in climate-adaptive technology and technological processes, so they remain skeptical of new farming practices.

The overall objectives of the project are to slow migration and rural exodus, and to improve the development prospects of rural populations through sustainable increases in productivity, income, and employment.

The following project outcomes are targeted:

1. the supply of financial services to commercial smallholder farmers, MSEs and potential entrepreneurs in rural areas meets their demand, so that they can develop their businesses in a sustainable and climate-resilient way.
2. sustainable and continuous financial and entrepreneurial education for rural populations is systematically implemented.
3. rural population and financial service providers are motivated and capacitated to use/offer financial services in such a way that they strive for sustainable climate resilience in their investments.

Project Tasks

• Create the conditions for strengthening the capacity of appropriate financial institutions to offer adapted financial services for sustainable rural development.
• Create conditions for improved use of financial services for sustainable rural development.
• Financial and entrepreneurial training of the rural population and agricultural MSEs with regard to the economic benefits of climate-adaptive production processes.