THIS WEEK IN UKRAINE
8 November 2024
Increased Investor Confidence in Ukraine Despite War
According to the European Business Association’s Investment Attractiveness Index, more companies are ready to invest in Ukraine, with the index rising slightly to 2.49 out of 5. The number of businesses planning to continue investments has grown to 70%, reflecting cautious optimism despite challenges like corruption, war, and judicial issues. Positive influences include Ukraine’s EU candidacy, the removal of export tariffs, and "transport visa-free" access to the EU. Western financial aid and strong domestic demand have further supported profitability for investors, with expectations of increased investment post-war.
World Bank and USAID Boost Ukrainian Business Growth
The World Bank is launching a new $593 million program to support Ukrainian small and medium-sized businesses (SMEs), drawing funds from Japan-backed ADVANCE Ukraine and other sources. This RISE project aims to support 20,000 SMEs and protect 40,000 jobs during wartime. Additionally, USAID has allocated $6 million to four companies to enhance export capacities, promoting resilience and growth in the Ukrainian economy.
Green Flag Ventures Expands Support for Ukrainian Startups in 2025
American fund Green Flag Ventures, founded by Justin Ziff and Deborah Ferlamb, plans to increase investments in Ukrainian defense startups in 2025, ranging from $100,000 to $1.2 million. The fund has already backed four Ukrainian companies, focusing on dual-use technologies for military and civilian applications. By mid-2025, they aim to add 5-6 more investments and secure up to 75% of their targeted funds, targeted funds, maintaining 30% capital for follow-up investments in portfolio companies.
Ukraine and KPMG Partner to Boost Green Investments
Ukraine's Ministry of Environmental Protection, led by Minister Svitlana Hrynchuk, has partnered with KPMG Ukraine to enhance investment pathways for green technologies. The collaboration, formalized by a memorandum, focuses on adopting EU taxonomy and defining green projects to advance climate finance reform. KPMG will assist in optimizing tax and finance distribution mechanisms, aiming to reduce emissions, restore polluted areas, and strengthen ecosystem resilience. This partnership will attract stakeholders and international partners, supporting Ukraine's journey toward climate neutrality.
Germany Boosts Defense and Energy Aid for Ukraine
Ukrainian President Volodymyr Zelensky met with German Foreign Minister Annalena Baerbock to discuss enhanced defense and energy infrastructure support amidst ongoing conflict. Baerbock, on her eighth visit since the full-scale invasion, reaffirmed Germany’s commitment to Ukraine’s military and financial aid. Key topics included strengthening bilateral defense collaboration, securing winter energy infrastructure, and advancing Ukraine's “Victory Plan” and peace summit initiatives. Zelensky emphasized the importance of Germany's continued defense support for Ukraine’s resilience and success.
Business Bootcamp Empowers Ukrainian Veterans with Start-Up Funding
Franchise Camp 2024, held in the Carpathians, brought together 50 entrepreneurs to develop businesses for veterans. The winning project, "#HireAHero," led by Marina Fostenko’s team, received 1 million UAH to establish veteran recruitment centers across Ukraine. Other innovative projects, like the contactless micro-stores near homes offering veterans a passive income stream without constant involvement and inclusive repair services, also received pledges from investors. Franchise Camp aims to aid veterans in reintegrating into civilian life, fostering sustainable businesses for Ukraine's future. The event was organized by Franchise Group, a leading franchising ecosystem in Ukraine.
Ukraine Launches 5G Pilot Project in Three Cities
Ukraine’s government has approved a pilot project to test 5G networks in three cities over two years, focusing on compatibility with military equipment. Led by the National Commission for Communications Regulation and the Ukrainian State Center of Radio Frequencies, the project aims to bring data speeds ten times faster than 4G, enabling high-speed data transmission. Full 5G deployment is targeted for 2030, with newly available frequencies also repurposed for mobile connectivity.