Commissioned by the German Government, UNDP and GIZ launch EUR 11.85 million initiative to support local solutions

Call for proposals announced to boost economic development in Ukrainian municipalities

April 7, 2023
Photo credits: Fré Sonneveld / Unsplash

Kyiv, 7 April 2023 – Commissioned by the German Government, the German federal company "Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH" and the United Nations Development Programme (UNDP) in Ukraine today announced a joint project called "Support to Rapid Economic Recovery of Ukrainian Municipalities" (SRER). The project will receive a total funding package of EUR 11.85 million and will focus on supporting the fast recovery of local production by increasing investments for the repair and improvement of basic and business infrastructure. This is seen as crucial for economic activities and will play a critical role in supporting the survival of micro, small, and medium enterprises (MSMEs).

The two organizations announced an all-Ukrainian Call for Proposals of up to EUR 800,000 per location to support initiatives aimed at the rehabilitation and renewal of basic and business support infrastructure. The grants can be used to support local initiatives in the following priority areas:

  • Restoration or provision of electricity, gas, water, or other basic utilities supply for the business zones of the municipality.
  • Restoration or provision of telecommunication and internet access for the business areas 
  • Refurbishing communal premises for hosting local and relocated SMEs and equipping the business infrastructure facilities.

Programme Director for ReACT4UA project (GIZ) Armin Hofmann commented that the German Government is focused on strengthening the Ukrainian economy during the war. Such actions target not only urgent recovery but put in place long-lasting and sustainable recovery practices through partnership and business support“In this initiative with UNDP, we will work with municipalities to rebuild strategic infrastructure damaged by the war. The access to the main industries is a factor that runs production processes and ultimately affects price formation and competitiveness,” he added. “Currently, it is extremely important to return entrepreneurs to work, so that they can manufacture and sell, and therefore support the economy of Ukraine."

UNDP Resident Representative Jaco Cilliers emphasized the importance of partnerships among municipalities, civil society organizations, and micro, small, and medium enterprises in addressing the critical needs of crisis management and ensuring rapid economic recovery. “The new initiative's focus on rehabilitating essential infrastructure for local businesses will support the renewal of disrupted value chains and create sustainable income opportunities across Ukrainian oblasts,” he said. “We expect this to pave the way for a more resilient economic future for Ukraine.”

To apply for grant: Municipalities with a population in the range of 60,000-500,000 (as of early 2022) can submit their application via the link. Apply by 28 April 2023.

Media enquiries: Yuliia Samus, Communications Team Leader, UNDP in Ukraine; e-mail:

Background information: The "Support to Rapid Economic Recovery of Ukrainian Municipalities" (SRER) project is being implemented by UNDP within the support of the international cooperation project ReACT4UA ("Utilization and Implementation of the Association Agreement between the EU and Ukraine in the field of trade"), that is financed by the German Government and is implemented by the German federal company "Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH". The project aims to improve competitiveness and resilience of Ukrainian small and medium-sized enterprises, especially with regard to EU accession.