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 million 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.