IFC is ready to contribute to the development of Ukrainian business

Olena Voloshina, IFC’s Head of Operations in Ukraine participated in the online forum FIT for Ukraine: Construction Materials.

She noted that Ukrainian business had proved “incredibly resilient”, continuing to operate under conditions of sustained armed aggression. Moreover, the private sector not only contributed to the economy and paid taxes, but also helped local communities and funded reconstruction where it was needed.

At the same time, the European Business Association claims that 83% of businesses in Ukraine have reduced production, 40% have suffered direct losses and 25% have lost their assets as a result of the occupation. According to the World Bank, Ukraine needs about $411 bln to rebuild.

“The needs are enormous, and the International Finance Corporation, as an institution focused on development of the private sector, is trying to take the lead and help the private sector get access to finance. We did not stop during the war. Since April 2022, we have invested $150 mln in the Ukrainian economy,” the Head of the IFC in Ukraine emphasized.

In December 2022, the Board of IFC endorsed a total financing package of up to $2 bln to help strengthen Ukrainian private sector resilience and support livelihoods in response to Russia’s invasion of Ukraine.

The response package includes financing from IFC’s own account and leveraged funds from donor governments throughout 2023 and 2024.
“In parallel, we started looking at the projects in which we could invest, and the analysis of the construction materials industry presented by the Executive Director of UkraineInvest and his team will be very handy,” Olena Voloshina emphasized.

The IFC is currently conducting further analysis of investments in various sectors of the Ukrainian economy. The first phase of the new assistance package will prioritise support for existing clients, food security and housing for temporarily displaced persons, while the second phase will focus on infrastructure reconstruction projects and other long-term investments “once we win this war”.

In preparation for this activity, the IFC signed a Memorandum of Understanding with the Government of Ukraine to become a strategic advisor on public-private partnership transactions.

“This dialogue has already started and predominantly it is going with the Ministry of Economy and the Ministry of Infrastructure. We are also partnering with business associations, with UkraineInvest, because Ukraine will need a lot of partnership and we are ready to stand by Ukraine and provide support and financing,” Olena Voloshina assured.

The international online forum FIT (Forum on Investments and Transformations) for Ukraine: Construction Materials was held on the 30^th of March. It was the first event in a series of forums initiated by the government investment promotion to discuss strategic sectors of the Ukrainian economy from the point of view of attracting investment.