USAID/Moldova requested Integra to conduct a mid-term evaluation of their flagship FTA project, an activity jointly funded by USAID, Sweden, and the UK, which aims to enhance competitiveness and expand global market integration of transformative economic sectors in Moldova, including information technology and engineering, the light industry, and creative and digital media industries. The evaluation team (ET) completed two weeks of in-person data collection and one week of in-person data validation, including education facilities, innovation centers, and accelerators, private sector representatives (SMEs/grantees), and workforce development participants. Before the recommendations workshop, the ET held four data validation workshops, and association members from all around Moldova were in attendance. This was critical in ensuring the final recommendations were as practical as possible.
The evaluation found that FTA’s support has contributed to the development of targeted sectors. This progress stemmed from enhancing educational and innovation infrastructure, expanding the services of business associations, fostering international connections, promoting reforms to Moldova’s business-enabling environment, and increasing access to finance for small and medium-sized enterprises (SMEs) and start-ups. FTA-supported educational collaborations enhanced workforce skills, and technological advancements boosted SME operations. Nevertheless, there was room for greater emphasis on research and development within the project’s scope. Comprehensive training for members of business associations, students, and industry professionals, as well as partnerships with global tech hubs, international universities, and innovation centers, the Moldovan diaspora, and international investors, have collectively strengthened the target sectors. Advocacy for legislative changes has also strengthened the same sectors. However, there was an opportunity for more cohesive coordination in these efforts. Collaboration with the government enhanced FTA’s grant management. Partnering with financial institutions has also led to developing new financial products and services.
The ET found that FTA’s response to Russia’s war in Ukraine was effective and timely, demonstrating the project’s adaptability and alignment with national goals. Similarly, FTA’s support for Moldova’s European Union integration efforts, particularly in advancing digital skills and European Union business linkages, was found to be effective. Meanwhile, FTA-supported gender equality initiatives have moderately increased women’s access to resources.
Recognizing the 15-year legacy of USAID’s competitiveness programs is also essential to understanding Moldova’s sector development evolution. The evaluation’s findings will help determine future adjustments to the activity or its theory of change. This evaluation is currently in its final stages and is expected to end in August 2024.
Photo Credit: Chemonics FTA team