Investment Climate Reform Ukraine Phase II
The project helps Ukraine to bolster its competitiveness and to enhance the country's trade diversification. It will simplify the regulatory regime for small and medium-sized enterprises (SMEs), cut red-tape, increase transparency and contribute to reduce corruption.
Private sector and entrepreneurship
- International Finance Corporation
Ukraine?s competitiveness has been constricted by the country?s long-lasting and deep-rooted attitude for over-regulation. Unnecessary or random inspections, import or registration procedures as well as superfluous requirements or excessive documentation to obtain permits or licenses are still common and a huge burden for SMEs. A gap remains between the adoption of laws and their implementation, also with regard to food safety standards.
The project's objective is to increase the competitiveness of Ukraine's private sector, especially SMEs and agribusinesses, and to better integrate the Ukrainian economy into regional and global markets. For this purpose the project aims to generate significant compliance cost savings for the private sector as well as to enhance food safety standards with the goal of improved access to regional or global export markets. The project will also help to create equal opportunities for SMEs as well as to reduce corruption thanks to fewer and less costly procedures.
Improvement or elimination of recommended procedures, firm-level policies, practices or standards leading to direct compliance cost savings.
Enactment of recommended laws, regulations, amendments, codes or government policies in conjunction with direct compliance cost savings.
Elaboration and completion of reports, such as assessment studies, surveys or manuals in conjunction with compliance cost savings.
Organisation and realization of workshops, training events, seminars or conferences targeting compliance cost savings.
Results from previous phases:
The first phase generated total annual savings of over USD 100 million for Ukrainian agribusinesses and opened new markets abroad. This was achieved through: i) removing several mandatory but superfluous requirements regarding the inspection of agricultural machinery, the registration of export contracts for agri-commodities and the requirement to obtain an import permit for every single batch of plant protection products- ii) making previously mandatory certification of grain quality and grain silos voluntary, which generates savings for agribusinesses of USD 63.3 million per annum or about 1 USD per tonne of grain- iii) adopting the comprehensive Food Safety Law, introducing principles of producer liability and traceability as important pre-conditions for exports- iv) working on food safety inspections that helped in particular the poultry sector. This boosted Ukrainian poultry exports by 80 percent in 2013 compared to 2012.
|Directorate/federal office responsible||
|Budget||Current phase Swiss budget CHF 3’150’000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 3’500’000|
Phase 1 01.10.2015 - 31.12.2018 (Completed)