With a population of around 2.4 million, Moldova is sandwiched between Romania and Ukraine. Until 1991, the country was part of the Soviet Union. Russian and European influences are still evident today. In recent years, one crisis has followed another, and many Moldovans live below the poverty line. Borrowing money from the bank to invest in a better future is simply not an option for most residents. In remote areas in particular, the distance to financial services is great. As a result, it is precisely those who need it most who are left behind.

With small, tailor-made loans, Microinvest, a non-bank lender founded in 2003, helps farmers, small entrepreneurs and households get ahead. "Our customers are hard-working people who sometimes fall just outside the traditional banking system," says Dmitrii Svinarenco, CEO of Microinvest. "We don't focus on why something can't be done, but on how we can make it work."

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From war to drought

Moldova has faced many challenges in recent years. Its economy had barely recovered from the coronavirus pandemic when Russia invaded Ukraine in 2022, plunging neighbouring Moldova into financial crisis. "Moldova was strongly linked to Ukraine for its international trade," says Svinarenco. "The nearest port is Odessa. Our imports and exports came to a complete standstill with the start of the war. In 2022, the country also faced inflation of almost 35 per cent. And then there is the climate crisis: Moldova is suffering from persistent drought, a major problem in a country that is so dependent on agriculture."

Microinvest CEO Dmitrii Svinarenco

Extreme poverty

The figures speak for themselves. One in three Moldovans lives below the poverty line, with a disposable income that is nowhere near enough to meet their basic needs. In rural areas, where the vast majority of the population lives, the poverty rate is even higher. Due to low wages and limited opportunities, many Moldovans have left, often to work as migrant workers elsewhere in Europe. Between 2020 and 2024, the population fell from 2.9 million to 2.4 million.

"The problem in Moldova is not that there are no jobs, but that there are no people to do the work," says Svinarenco. This underlines the importance of small, accessible loans. “They stimulate economic activity and thus employment, so that Moldovans do not have to leave to find work and a good income.”

Strengthening the economy

Microinvest offers exactly this type of loan. "If you don't fit the mould at regular banks, you won't get a loan. We focus how we can make things work, on what we can achieve together." In 2015, when Svinarenco took office, the company had EUR 12 million in outstanding loans. That figure has now increased to EUR 325 million. "We have grown enormously and compete with the regular banks in our country in terms of the size of our loan portfolio. We currently have around 42,000 active customers. More than 4,000 of them are entrepreneurs, mainly farmers, who want to expand their businesses. By supporting this group, we can contribute to strengthening our country's economy."

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A future thanks to a loan

Svinarenco has plenty of examples of how Microinvest loans make a difference in people's lives. "One loan enabled a farmer to build a small storage facility. Now that he can store his produce for longer, he is less dependent on buyers and can ask a better price for it." Thanks to the loan, the farmer earns more and can, for example, create jobs and retain employees in the long term. Ultimately, the entire community benefits.

Another example is a farmer who used his loan to install solar panels and an irrigation system on his land. As a result, his electricity bill fell dramatically and, despite the ongoing drought, he achieved an excellent harvest. "This farmer is now generating a good turnover and can therefore easily repay his loan," says Svinarenco. This is exactly what Microinvest wants to achieve. The company looks beyond simply providing loans. "We are not just a lender, but actively look at bottlenecks within a company and how they can be improved."

Helping families

In addition to business customers, Microinvest also finances households and families, for example with loans to improve their homes. Microinvest is the only financial institution in Moldova that holds the international GOLD certificate for customer protection. The certificate stands for a responsible and transparent lending process, fair and transparent financing and a constructive approach to every application.

Microinvest now has 355 employees and receives loans from large international institutions that want to make money available for microfinance. In 2023, the European Union provided a guarantee for a 10 million euro loan. The Triodos Financial Inclusion funds provided a loan to Microinvest.

Moldovans are resilient
Microinvest believes in people with plans. In entrepreneurs who want to contribute to a better Moldova. Where possible, it offers flexible repayment terms and financial education, not only for its customers but also for the wider community. "I strongly believe in the 'circle of influence'," says Svinarenco. "There are many things in the world we don’t control, but we do have control over how we help each other move forward."

He therefore remains optimistic, despite the challenges facing the country. "We are a resilient country. We have already overcome many crises, and we will overcome this one too. I see that in the entrepreneurs we support. They think ahead and dare to invest."