WB finds facts about RISP project in Moldova

“The RISP (Rural Investments and Services Project) project has helped us to create 120 jobs that we try to keep during this crisis times,” said Vasile Marzac, the owner of “Rovacont” SRL from Orhei district, during a fact-finding visit organized by the World Bank Office to his firm. The firm manufactures clothes. “We started with 19 employees. Then we employed more. We were glad RISP started, as it offers money to rural entrepreneurs – the interests are smaller and the loans are granted for longer terms. We took two loans and bought new sewing machines, ironing installations, other equipment. We established relations with partners from England and Italy, who supply us with raw material and buy our products. We sew all kinds of apparel. Now we have 220 employees, 20 of which actually are on maternity leaves, since our employees are mostly women, but we're not angry, because we'll have people who'll come to work for us,” the owner said. Vasile Marzac says the output has been worth 6-7 million lei for the last two years. “We did well, but the world financial crisis this year has reduced the demand and our partners had to cut their commissions. Our production dropped about 30 %, as a consequence. However, recently we concluded two more contracts and we hope to register the same output this year as it was last year,” the entrepreneur said. “We have problems even with the exchange rate. Last year our profit was 27 %, but it was annihilated because of the currency exchange rate fluctuations. We are optimistic: this crisis is not going to last for ever. The key point is to preserve the jobs,” he said. Martin Raiser, the WB's director for Ukraine, Belarus and Moldova, is glad the firm works and the people's mood is good. “The fact that the clothes from here are exported to Europe, that Rovacont cooperates with partners from England and Italy makes the products to be close to the EU standards. Certainly 5-12 euros – the amount the company gets from an item – is not big. To get a better added value, Moldova must diversify the exported goods, to offer own products to the European market. Concomitantly, one should work to improve the quality control system and that is why we implement another project in Moldova: “Improving Competitiveness.” It will help boost the quality of Moldova's goods for export,” Raiser said. The RISP pursues to stimulate growth during the post-privatization period in the farming and rural sectors, by improving farmers' access to know-how and funding.