Overview

The economy of Moldova is an emerging upper-middle income country. Moldova is a landlocked Eastern European country, bordered by Ukraine on the East and Romania to the West. The country is today candidate to the European Union.

The manufacture industry is not well developed, and Moldova remain first and foremost an agricultural land. Moldova’s proximity to the Black Sea provides a mild and sunny climate. The fertile soil supports wheat, corn, barley, tobacco, sugar beet and soybeans.  Moldova’s best-known product comes from its extensive and well-developed vineyards concentrated in the central and southern regions.

Also, the country relies heavily on remittance which indicates that a large portion of the workforce remains abroad. Remittances from Moldovans abroad account for a quarter of Moldova’s GDP, one of the highest percentages in the world.

Accommodation :

Most housing advertisements are located in Chisnau and Balti. A few goods can also be found in Orhei and Ialoveni and not in the rest of the country. This means that the rental market is very small outside urban areas. Scarcity remains the main challenge, when it comes to the housing market. Since the war in 2022, the refugee influx might have decreased the overall availability of goods in the market. An increase demand, either from a new refugee influx or more refugees moving from other accommodation solutions to renting, may coincide with lower availability and shock the market

Tourism: 

Although it is a small country, the Republic of Moldova as a tourist destination has a great potential. First there is an unusual diversity of landscapes and geological monuments of European and world value.

Over the last decade the priority forms of tourism in the Republic of Moldova have been rural, wine, cultural tourism, health and beauty Tourism.

The number of tourists staying in Moldova rose by 17.2% in 2023, reaching 391,500 people according to the statistical office.

19% of foreign tourists who visited Moldova last year arrived from Ukraine, 10% came from Romania, 3.4% from the U.S., while Russian tourists accounted for 1.5%, based on the figures provided by the statistical office.

In 2022, tourists booked 1.41 million overnights in Moldova, which amounts to an increase of 5.1% in annual terms. Out of these, foreign visitors booked 408,200 overnights, down by 3.3%.

During 2023, the average length of stay of a Moldovan tourist in the country's accommodation facilities was 6.1 days, while foreign tourists spent 3.1 days on average.

The number of tourists staying in Moldova jumped by an annual 87.4% in 2022, reaching 333,900.

Electricity supply:

Moldova’s electricity supply is heavily dominated by the Russian-owned Kuchurgan power plant (MGRES) located in the Transnistrian region. 

In 2021, MGRES generated 74% of right-bank Moldova’s electricity supply. The remaining electricity came from production in right-bank Moldova (23%) and via imports from Ukraine.  In summer, MGRES covers up to 95% of the electricity supply in contrast to only around 60% in winter.

Transnistria receives gas free of charge from Gazprom.  In exchange the cost of electricity production at MGRES and consequently prices for consumers in Moldova are very low.

However, the dependence on only one source of electricity production which is not under the control of Moldovan authorities poses risks in terms of energy security. Thus, a diversification of electricity supply is needed to reduce the dependence on MGRES.

The country has cross-border transmission capacity with Ukraine (600 MW) and Romania (310 MW).

Financial Services:

The financial sector in Moldova mostly consists of commercial banks that hold around 86% of total financial sector assets. Non-bank credit organizations that provide small size loans to low-income borrowers hold around 10% of total financial sector assets. Other financial institutions such as insurance companies, saving and loan associations are small and do not play a significant role in financial intermediation in Moldova.

Moldova has four foreign banks; among them Societe Generale’s Mobiasbanca and Erste Bank’s BCR are the most well-known.  While Moldova’s regulatory landscape does not prevent banks from opening offices in other towns, most bank offices are concentrated in Chisinau, which is both the administrative and economic capital of Moldova.

In contrast to the West, banks still play a minor role in the country's economic development and business activity.  Moldova’s high credit risk and inflation rates determine the high interest rates on limited bank loans.  A persistent problem in the banking system is the insufficiency of funds with longer tenors.  The population often opens deposits for periods less than 12 months.  Loans and state treasury bills provide limited diversification for the banks’ assets because Moldova’s stock market remains underdeveloped and provides limited options for long-term investments.  As a result, banks have to rely on long-term credit lines from the World Bank, the European Bank for Reconstruction and Development, and other international financial institutions to lend long term.

Maib is the largest bank in Moldova, with a share of 31.9% of deposits and 37.0% of loans of the entire banking system at the end of Q1 2023.  The Bank is of systemic importance and serves almost a third of the country's population. Since 2018, MAIB's largest shareholder is a consortium, which includes the European Bank for Reconstruction and Development (EBRD), Invalda INVL, a leading asset management group in the Baltic States and Horizon Capital, a private investment fund focused on emerging markets.

Clearing and   Forwarding Agents

Clearing and Forwarding Agents are widely available throughout the country.

Postal and Courier Services

Posta Moldovei is one of the biggest postal operators in Moldova and offers a large panel of postal and financial services within the entire country with more than 1146 offices and postal agencies. 37 postal agencies operate in 1527 vicinities of the country. 

DHL is also present within the country.

Printing and Publishing

Printing and publishing companies are widely available in Chisinau. You will find at the following link the contact of 19 publishing companies: https://www.alphapublisher.com/post/list-of-10-book-publishers-in-moldova

Taxi Companies

Taxi companies are safe and reliable in Chisinau. The most used taxi companies are the following: Yandex go, Hip taxi, letz.Also, tramway is a reliable mean of transportation within the capital city.

Below you will find a few providers for emergency equipment:

• Machineequipements is the main relief tents manufacturers in Moldova. They offer a wide range of tents, from mini–Rub Hall to army tents. They also provide water treatment plants.
•  The website UBUY.MD also allows the shipment of multipurpose tents from the United States.
• The company hidrolider provides water pumps water pipes and water tanks.
•  For office equipments, WFP has contracted DecoPrim and can be ordered online.
• The main IT supplier is Accent and can be ordered online. 

For more information on suppliers’ contact details, please see the following link:  4.10 Supplier Contact List

 

 Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider