The Western NIS Enterprise Fund (WNISEF) and the Future Technologies Activity (FTA) in Moldova, funded by USAID and Sweden, are supporting Moldova Innovation Technology Park (MITP) in promoting Moldova as a high-value IT destination using digital technologies to advance business and society in innovative ways.
Acting as a cluster facilitator, Moldova Innovation Technology Park is a unique and innovative model to support IT business development, ICT sector competitiveness, streamlined practices and policies, investment, R&D, and digital innovation in Moldova. Governed by its residents, it represents the largest voice of the IT industry, counting more than 950 local and international tech firms, which employ more than 14000 employees, benefit from a simplified 7% single tax for a 10-year period, and fund the Park’s operating costs. Comparative studies show that Moldova’s incentive scheme delivered through MITP is the most advantageous in the region, representing an untapped opportunity for regional and international investors. (For example, Romania’s total tax burden on residents of a similar park is 28%, and Estonia’s is 40%, while MITP offers a single tax mechanism of 7% applicable both on revenue and wages.) To date, MITP hosts 174 residents with foreign investments from 35 countries; 27 companies are from the US and 86 are from the EU.
WNISEF, FTA, and MITP will jointly develop a Moldova IT investment guide which will provide country background and a clear roadmap for potential investors and professionals who intend to operate in Moldova. The IT investment guide will be promoted internationally to target new tech investors and talent, including in high potential areas like design engineering, R&D, animation, and game development.
In addition, the partners will support Moldova Innovation Technology Park to organize an annual industry event that will promote excellency and surface the hidden gems and innovations developed and implemented by MITP residents. The event will sum up the industry’s progress and recognize technology trailblazers among residents through the Moldova Innovation and Technology Park Digital Solution Award. The event’s agenda will also include talks and panel discussions featuring global opinion leaders and influencers as well as angel investors. It will serve as a key element of a regional communications campaign building Moldova’s image as an attractive and advanced IT country and a ‘sandbox for innovation’.
“The technological sector is of strategic significance for the Moldovan economy and can change the way Moldova is globally perceived in the digital transformation era.Moldova Innovation Technology Park is an organization that unites the local IT community, and with our support will be able to cast a positive impact on the IT industry of the whole country”, said Jaroslawa Z. Johnson, President and Chief Executive Officer, WNISEF.
“Moldova Innovation Technology Park has proven itself a valuable element in the tech and innovation ecosystem. We focus on providing all the necessary incentives for Moldova’s potential investors, while attracting high skilled specialists and startups thanks to our affordable locations and a single 7% sales tax. An annual awards event will serve as an important step in highlighting the most significant innovations and startups with the potential to shape the IT sector’s future”, said Natalia Donțu, the MITP Administrator.
“Information and communications technology is the fastest growing export industry in Moldova showing exponential growth rates due to a supportive ecosystem and attractive incentives for investment like the Moldova Innovation Technology Park seven percent tax. The continued development of this sector as a driver for growth and an enabler of digitalization of the entire economy is a key priority for the government and donors. We look forward to continuing our successful collaboration with Moldova Innovation Technology Park and establishing this partnership with WNISEF to promote international investment in the Moldovan IT sector and recognize the innovations and successes of the Park’s residents”, said Doina Nistor, Chief of Party, Future Technologies Activity.
Western NIS Enterprise Fund (WNISEF) is a $150 million regional fund, a pioneer in Ukraine and Moldova with over 25 years of successful experience in investing in small and medium-sized companies. WNISEF was funded by the U.S. government via the U.S. Agency for International Development (USAID). Since its inception, WNISEF’s cumulative investments total over $186 million to 130 companies employing 26,000 people and made it possible to unlock $2 billion for companies in Ukraine and Moldova.
In 2015, WNISEF launched a $35 million legacy program focused on export promotion, local economic development, impact investing and economic leadership. WNISEF is funding innovative, high-impact, reform focused programs and aims to support Ukraine and Moldova at this critical period by developing sound economic policy and leadership. Visit www.wnisef.org
The Future Technologies Activity (FTA) in Moldova, funded by USAID and Sweden, is a five-year, $32.8M flagship program spurring the development of the digital, creative, and green economy in Moldova. FTA (2021-2026) works in partnership with stakeholders in the information and communication technology (ICT), engineering, light industry, creative, and digital media sectors, harnessing innovation and new technologies to drive Moldova’s competitiveness and integration with global markets.