Attracting investment in times of war: challenges and opportunities for Ukrainian communities

The war is the main limiting factor for investment in Ukraine, but war risk insurance and cooperation with twin cities can support the development of local businesses. This opinion was expressed by economic expert Oleh Hetman in an exclusive commentary to UNN. He also emphasized that, along with systemic solutions at the state level, local authorities should also take steps to meet entrepreneurs.

"The most important limiting factor for investment is the war and military risks. It is unlikely that local authorities will do anything to help. Some local authorities in the west of Ukraine are more fortunate, others in the east are less so, and they can't change anything here. What could improve investment attraction is a state program, although theoretically local authorities can also pull it up, as war risk insurance is free for investors," Hetman believes.

In his opinion, for example, if an investor wants to build something, the state or local authorities can provide free insurance, involving international large companies, pay for this insurance and insure the facilities up to a certain amount. This approach, according to the expert, could help support business development.

In addition, to support small and medium-sized entrepreneurs, Hetman said, local authorities should establish cooperation with foreign twin cities. This would help attract more investment in local businesses.

In general, according to the expert, systemic solutions are needed at the state level, such as the introduction of war risk insurance, improvement of tax legislation, simplification of regulation, and actions by local authorities.

"We need big systemic solutions. But, of course, local authorities can do something within their capabilities," Hetman summarized.

Brovary as an example of a battle between government and business

In any case, economic development and support for entrepreneurship remain key tasks for communities under martial law. small and medium-sized businesses contribute to the stability of the local economy and help to adapt to the challenges of today. One of the positive examples of such activities is the Brovary community, which is actively implementing programs to support entrepreneurs and attract investment.

The local authorities consider the development of small and medium-sized businesses a priority, as entrepreneurs are the driving force behind the local economy. According to Brovary Mayor Ihor Sapozhko, the local authorities are doing everything possible to ensure favorable conditions for doing business even in the difficult conditions of war. These measures include implementing support programs, adapting businesses to new economic conditions and providing access to financial resources.

"Business support is our shared responsibility for the future of the community. It is important not only to help entrepreneurs but also to actively cooperate with our international partners to implement modern solutions and ensure sustainable development. In the current conditions of war, support from sister cities and cooperation with foreign communities allow Brovary to effectively address economic and social challenges," said Igor Sapozhko.

One such example is the EU4Business: Recovery, Competitiveness and Internationalization of Small and Medium-Sized Enterprises program, which is supported by the EU and the German government. The program provides advice, organizes trainings, and helps businesses affected by the war to resume operations.

Brovary also has an active Business Support Center, where entrepreneurs can get advice on grant programs, financing conditions, and improve their skills through training events. This center has become an important tool for supporting the community's economic activity in difficult times.

In addition, the Brovary authorities are implementing infrastructure projects aimed at creating a barrier-free environment that helps attract more visitors and increase the city's economic attractiveness.

Another area of economic development for the community is cooperation with foreign sister cities. Such cooperation opens up new opportunities for exchanging experience, attracting investment, and implementing joint projects. Twin cities can provide humanitarian aid, support economic initiatives, and help build infrastructure.

The Brovary community has close ties with its sister cities in Europe, particularly Germany. This helps attract international assistance, investment, and technological solutions that help restore urban infrastructure. For example, cooperation with European partners has contributed to the implementation of energy efficiency projects, the reconstruction of public facilities, and the introduction of modern technologies.

Mayor Ihor Sapozhko emphasizes that despite all the positive changes, the community does not plan to rest on its laurels. Further cooperation with sister cities, attracting foreign investment, and implementing innovative projects remain strategic priorities.

Only such a comprehensive approach of local authorities to stimulating business will have a real result and help local businesses develop, which in turn will be an impetus for the economic recovery of the country.