The Ministry of Economy: $5.8 billion of investments are needed to restore private business in Ukraine
Kyiv • UNN
According to the Ministry of Economy, Ukraine's private sector needs $5.8 billion in investments in 2024 to restore industry and trade damaged by the war.
The private sector, in terms of industry and commerce alone, needs $5.8 billion in 2024. This was reported by the Ministry of Economy of Ukraine, UNN reports.
Details
The World Bank and the government have announced the results of the latest Ukraine Damage and Needs Analysis (RDNA3), which was conducted as a result of the war. The Ministry notes that the results of the analysis will form the basis for the implementation of an investment mechanism that will allow the private sector and state-owned companies to receive funding for investment projects aimed at rebuilding and economic growth in Ukraine.
It is noted that Ukrainian industry and the commercial sector are the backbone of the Ukrainian economy and generate about a third of the gross domestic product, as well as provide jobs for about 6 million people, and the losses of the sectors as a result of the war are estimated at about 15.6 billion US dollars.
In 2024 alone, the investment needs of industry and commerce amount to $4.2 billion, and working capital to $1.6 billion, for a total of $5.8 billion. This is the total financing need for the sector, which we, together with our international partners, intend to meet
The Ministry noted that the main areas of funding this year will be grants for business recovery and modernization. This will include partial compensation of interest rates under the 5-7-9% affordable loan program, support for Ukrainian exporters through the Export Credit Agency, war risk insurance programs, and incentives for investment in the private sector. Another important area is to finance capital investments and upgrade equipment of domestic enterprises that suffered as a result of the war.
At least $1.6 billion is provided for investment financing. It is expected that the instruments for obtaining them will be available for companies, both through the banking system, corporate financing, and project financing. In order to provide financing, the government plans to use the Ukraine Facility and the investment framework to reduce the risks of projects in Ukraine.
