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GIZ has been assisting the Republic of Moldova with the difficult process of socio-economic transition since 1994. We are conducting these activities on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and other federal ministries. We also work on behalf of international organizations in the country and maintain an office in Chisinau to this end.

The Moldovan economy is dominated by the agricultural sector and downstream processing industries. While the emerging private sector accounts for approximately 80% of the economic value added, Moldova is still one of the poorest countries in Europe. Of its 4.4 million inhabitants, 700,000 (16 per cent) have already left in search of better living conditions. The International Monetary Fund (IMF) estimates that remittances from Moldovans living abroad account for some 30 per cent of GNP.

The country’s economic strength is further weakened by the long-standing and unresolved conflict over the breakaway region of Transnistria: this is where a significant part of industrial production is concentrated.

Romania’s accession to the European Union (EU) has made Moldova an EU neighbor. It is therefore integrated in the EU’s Neighborhood Policy, which aims to promote closer relationships with the new neighboring states. The overarching objective is to tangibly improve the political, social, economic and ecological situation, with a mutual commitment to sustainable development.

The Republic of Moldova is not a regular partner country in German international cooperation. GIZ projects there are generally financed out of supra-regional BMZ funds, by other federal ministries or by international organizations.

German international cooperation with Moldova focuses on promoting modernization in the agricultural sector and the food processing industries, as well as on improving vocational training and municipal services.

GIZ also supports selected municipalities and districts with participatory budgeting, public tendering and project management with a view to integrated regional development. A further priority area is the promotion of German-Moldovan business relations by means of training for Moldovan managers to help generate business contacts.