The Japan International Cooperation Agency (JICA) signed an investment agreement of up to $20 million with Horizon Capital Growth Fund IV, L.P., an investment fund targeting Ukraine and Moldova, on February 19 in conjunction with the “Japan-Ukraine Economic Recovery Promotion Conference”. JICA’s investment will be used for the sustainable development of export-oriented ICT and tech companies in Ukraine and Moldova through this fund. This project is JICA’s first overseas investment in Europe since the resumption of its overseas investment and loan program in 2012.
Since the Russian invasion of Ukraine on February 24, 2022, Ukraine and Moldova have faced a humanitarian and economic crisis, and according to a World Bank study, a total of US$486 billion will be required over the next 10 years for rehabilitation and reconstruction. Therefore, in addition to government and other public sector support, private sector investment is considered essential. While traditional industries such as agriculture have fallen back due to the invasion, the ICT sector, which is an export-oriented industry, has been strong, and as an important sector supporting the economies of the two countries, support for this sector is desired.
This project aims to contribute to the sustainable development of the economies and societies of Ukraine and Moldova by investing in export-oriented ICT and tech companies in the two countries, which are still under the influence of Russian aggression, to develop their industries and create jobs. In addition, as a flagship fund that meets the 2X Challenge (Finance for Women) standards, with the percentage of women business owners and entrepreneurs in the fund’s portfolio companies to be at least 30%, the fund is expected to be a gender-promoting project and will contribute to the SDG (Sustainable Development Goals) Goal 1 （Goal 5 (Achieve gender equality), Goal 8 (Achieve job satisfaction and economic growth), Goal 9 (Create the basis for industrial and technological innovation), and Goal 17 (Achieve the goals through partnership) of the Sustainable Development Goals (SDGs). This initiative will also contribute to the resolution on Women, Peace and Security (WPS) adopted by the UN Security Council.
© Source JICA