Poorest country in Europe
With a GDP per capital of just over USD 2,500, Moldova is the poorest country in Europe and faces an extremely high migration rate. An estimated one-third of the economically active population work abroad. The money these migrants send back home to their families are an important driver for Moldova’s economy, which also relies heavily on agriculture.
Financing the backbone of the economy
Agriculture is the backbone of the country’s economy and an important source of income for Moldova’s rural population. Microfinance institution Microinvest plays an active role in this area. Loans provided by Microinvest enable entrepreneurs to grow their business, for example to buy equipment and vehicles, or to expand their greenhouse capacity. Many of them employ several people, so these entrepreneurs play a crucial role in creating jobs. Other sectors that Microinvest serves include trade and services. These sectors are also typically underserved by the mainstream banks.
In 2014, the banking sector in Moldova went through a deep crisis that led to the collapse of three commercial banks. Since then, great efforts have been made to stabilise the banking sector by restoring shareholding transparency and corporate governance and promoting legislative reforms. Efforts have been made to restore creditability for Moldovans, the financial markets and the country’s international partners. Through its responsible and transparent lending, Microinvest wants to contribute to a well-functioning financial sector in Moldova, to be a trustworthy partner for its clients, and to enhance the country’s economic and social development.
Recruiting the right experts
Microinvest is a leader in the microfinance sector of Moldova with a nationwide network of branches. Due to the high migration rate it is a challenge for Microinvest to recruit qualified professionals. To address this issue the institution has introduced a special programme where they work with recent university graduates. During a three-month induction programme, these graduates develop the necessary skills and knowledge to pursue a career at Microinvest. The institution has also developed an in-house training programme to equip existing staff with the competencies and skills they need to perform well and develop personally.
|Number of loan clients||21,118|
|Percentage female clients||52%|
|Percentage rural clients||64%|
|Average loan||EUR 2,065|
|Number of employees||154|
Microinvest is ideally positioned for growth. The EUR 3 million loan provided by Triodos Microfinance Fund and Triodos Fair Share Fund will enable Microinvest to increase its outreach over the next few years.
Sustainable Development Goals
In view of MicroInvest’s mission and activities, the institution mainly touches upon the following Sustainable Development Goals:
Explore our Financial Inclusion impact report ‘Creating an inclusive world’ to find out more about our role as investor in the financial inclusion sector in Africa, Asia, Eastern Europe and Latin America. The report presents our 2018 results in a context of number and stories and showcases our mission to make money work for positive change.