Smart economic specialization: Switzerland and UNDP invest in the economic development of six regions
May 22, 2025
The fruit leather business of entrepreneur Ludmila Castraveț, beneficiary of the first phase of the project
The UNDP project “Resilient and inclusive markets in Moldova”, funded by Switzerland, will continue into a new phase covering the period 2025–2029, with a budget of over US$4 million.
Three regions, to be selected through a competitive process, will benefit from support for smart economic cluster specialization. In the first phase of the project, were established and developed: the tourism cluster “Inima Nistrului” (Heart of the Nistru), the livestock cluster “Ovi-Caprin Cimișlia-Basarabeasca”, and the horticultural cluster “Herbafruct”. These will continue to benefit from funding and mentoring.
All six clusters will receive both non-reimbursable financial support and specialized technical assistance for value chain analysis, adoption of modern technologies, and innovative solutions. This will contribute to the development of entrepreneurial skills and the integration of products into retail and export markets.
“The success of the first phase has shown us what’s possible when local ambition meets international support. As we move forward, our goal is to strengthen Moldova’s local economies by supporting clusters that are globally competitive while remaining deeply rooted in their communities,” stated Guido Beltrani, Director of the Swiss Cooperation Office in the Republic of Moldova.
“The long-standing partnership between UNDP and Switzerland has brought tangible results and real change to communities across Moldova. Through this new phase of the 'Resilient and inclusive markets in Moldova’ project, we aim to expand the already proven local impact by supporting new clusters that will create and maintain decent jobs, boost competitiveness, and help local economies thrive,” said Daniela Gasparikova, UNDP Resident Representative to the Republic of Moldova.
The project aims to further contribute to inclusive, competitive, and sustainable economic development in the Republic of Moldova by ensuring equitable access to decent jobs at local and regional levels.
Additionally, the project will promote a more efficient regulatory framework, create favorable conditions for business development, and encourage cooperation among economic actors, with special focus on the inclusion of local communities, returning migrants, and refugees.
The proposed policy measures and developed instruments will facilitate access to finance for SMEs and economic clusters, support the development of value chains, encourage the adoption of modern technologies, and enhance competitiveness.
In its first phase, the project supported the development and launch of the National Industrialization Program. Moreover, UNDP, Switzerland, the United Kingdom, and Sweden supported the development of six deregulation packages that generated annual savings of over 838 million MDL by simplifying procedures, reducing bureaucracy, and facilitating business operations.
Between 2023 and 2025, the “Resilient and inclusive markets in Moldova” project contributed to strengthening economic and social cohesion in the three beneficiary regions, covering 24 localities with a population of approximately 66,000 people. Under the project, 52 private companies modernized their infrastructure and production processes, and adopted energy efficiency solutions, thus improving their productivity and competitiveness. Additionally, 10 digital transformation solutions were implemented, streamlining business operations. Three investment portfolios were developed for the clusters and promoted both locally and internationally.
More than 300 individuals, including youth and women, improved their entrepreneurial skills through mentorship programs, training sessions, study visits, and more. Two vocational training courses in livestock farming and rural tourism were developed and accredited. As a result of the project’s activities, 533 jobs were created, improved, or sustained.
Since 2019, UNDP Moldova and its partners — the European Union, Sweden, Switzerland, and the United Kingdom — have invested $4.8 million in the creation and development of 17 clusters. Areas covered include livestock, horticulture, tourism, and industry.
Clusters are intended to generate higher added value for local economic growth and improve the competitiveness of small and medium-sized enterprises.
In 2024, nine Moldovan clusters successfully completed the ECEI Bronze Label “Striving for Cluster Excellence” certification process, reflecting their commitment to performance and excellence.