EBRD, World Bank's IFC to invest $70 mln in Ukraine, Moldova tech sector

The World Bank's private funding arm, the International Finance Corporation (IFC), and the European Bank of Reconstruction and Development (EBRD) said on Monday they would invest $70 billion in tech and export-oriented businesses in Ukraine and Moldova.

The World Bank's private funding arm, the International Finance Corporation (IFC), and the European Bank of Reconstruction and Development (EBRD) said on Monday they would invest $70 billion in tech and export-oriented businesses in Ukraine and Moldova. The IFC said in a statement it would put $30 million into a fund managed by private equity firm Horizon Capital. In a separate statement, the EBRD announced it would invest $40 million in the fund now, though could add another $10 million at a later date.

"Ukraine's IT industry remains a bright spot in an economy that has shed nearly 5 million jobs since February 2022 due to the war," the IFC said. The Horizon fund aims to raise up to $250 million in total over the next 12 months, the EBRD said in its statement.

Analysts expect Ukraine's economy to shrink by 30-35% this year while the World Bank has estimated that it could cost nearly $350 billion to rebuild the country following Russia's invasion. "Some businesses have ceased operations, while others have been forced to adapt to a new reality of logistical disruptions, fuel deficits, relocated production facilities and staff, tighter currency controls and shortages of finance," the EBRD said in the statement.