81322958_Development_MSME_IT_Platform

In Ukraine, GIZ is providing extensive support for efficient and long-term reconstruction on behalf of the German Government, the European Union (EU) and other donors. It operates in the following areas: · Good living conditions and good governance · Secure energy transition and climate action · A well-performing economy Small and medium-sized enterprises (MSMEs) have the potential to become a vital driver of Ukraine"s economy, creating jobs and promoting growth and innovation. However, MSMEs often struggle to access timely and suitable financing, limiting their ability to fully contribute to economic development. The new co-financed Programme "STEP IN 2 EU" will address these topics in various modules - including the promotion of access to finance for MSMEs. Programme focuses on the following priorities: · Support for economic development and corresponding strategies/measures of the Ministry of Economy and Finance of Ukraine - especially with regard to the requirements of companies and financial institutions towards EU membership or the implementation of European regulations. This also applies to the continuation of co-operation with the National Bank of Ukraine - NBU - in the gradual implementation of EU regulations for the financial sector. · Technical support in the implementation of the above-mentioned state support measures in selected sectors in the MSME segment as well as a strong focus on reforms in the financial sector (banks and insurance companies). · Regional economic promotion in cooperation with decentralised administrations and districts in the area of MSME promotion. · Promoting the financing of MSMEs via selected financial institutions in Ukraine together with the BDF as a central partner of GIZ. The MSME IT Platform to be expanded will be disseminated via the banking associations in Ukraine, among others. The German Government (BMZ and BMF) is committed to further support the Business Development Fund of Ukraine. Business Development Fund is Ukrainian state-owned institution, aimed to support the financing and development of micro, small and medium-sized enterprises with the help of a wide range of programs and financial instruments: soft loans, interest compensation, credit guarantees and grants as well as consulting support for MSMEs and partner financial institutions. BDF operates as a second level financial institution. The business model of BDF could be described as follows. It attracts capital, concessional loans, and quasi-commercial debt from national and international economic development partners, development financial institutions, and other entities supporting private-sector entrepreneurship. These resources are channelled through partner financial institutions (PFIs) to increase access to grants, loans, and additional financial services for SMEs in Ukraine. The support measures are mainly focusing (i) on strengthening and establishing the BDF as a professional, core development institution for Ukraine and (ii) the promotion and digitalization of MSME finance in line with the Ukraine"s SME Strategy. Within this framework, GIZ and KFW as implementing partners will continue and even intensify their trustworthy cooperation with the BDF in the coming years - which will stay to be challenging in view of the political and war-related circumstances. Therefore, the further strengthening and support of the MSME and the financial sector in general, and the direct cooperation with the BDF in particular, will remain crucial for Ukraine"s economic recovery. KFW and GIZ have been aligning their core activities with the BDF closely: · KFW will support and finance the institutional capacity building and further professionalization of the BDF with the aim of developing into a strong and autonomous institution. The institutional capacity building, financed by BMZ and implemented by BDF with the Consulting company Deloitte, represents the first and short-term goal of the "Vision BDF 2.0". Besides clear legal frameworks, independent and gender-balanced governance structure and financially self-sufficiency, also robust processes, including a comprehensive internal core IT infrastructure are envisioned. Part of this target IT architecture for the BDF with all its modules and business solutions is planned to be implemented and rolled-out with BMF-funding via KfW until 2026. This includes for example the automatization and digitalization of internal processes and an automatic data exchange between BDF, banks and ministries. · GIZ will further support BDF in designing, developing and roll-out the "MSME IT Platform". This so-called external IT solution will allow BDF to professionally match demand (MSME) and supply of capital (Development Finance Institutions/banks, Donors, Government programs, etc.). Furthermore, this digital solution will lead to more efficient and transparent processes in MSME financing in Ukraine, including comprehensive overviews, mappings and reports of MSME programmes, provided credit and grant lines and on specific target groups.