InfoBulletin Q3 2024

New 2024 eEconomy/eCommerce regulatory package. The improvement of eEconomy/eCommerce legislation remains a key focus on the ECS Roadmap. The consolidated legislative contributions prepared on the EC platform are promoted through digital legislative packages, aiming to remove barriers for digital solutions and align internal legislation with EU standards. The next legislative package, resulting from ongoing screening and public-private dialogue, has been developed on the iCouncil platform. This package consolidates approximately 30 legislative initiatives and has benefited from the direct contribution of ATIC/GIZ. Currently, the ECS is examining proposals and objections from the first round of public consultations and refining the legislative amendments accordingly. A series of consultations are being held with involved experts, as well as mediation meetings with the National Bank of Moldova (NBM), the Ministry of Labor, Social Protection, and Family (MoLSP), and the Anti-Money Laundering Service (AML Service).

eKYC platform development. The EC Secretariat in collaboration with the Ministry of Economic Development and Digitalization (MoEDD), the European Bank for Reconstruction and Development (EBRD), and the UK-Good Governance Fund (UK-GGF), has launched a contactless business initiative that requires a reliable and functional electronic Know Your Customer (eKYC) platform. The first stage of this Technical Assistance (TA) project focused on developing regulatory and technical requirements for the eKYC platform. The second stage involves the actual development of the platform itself. In October 2023, the concept and technical requirements for the eKYC platform were presented to the World Bank/UIPAC project for potential financing of 450,000 Euros. The project received preliminary approval in December 2023. Following this, the ECS, with support from UIPAC/WB, conducted an assessment of the legal framework, market demand, and the platform concept. The results of this assessment were presented and approved in September 2024, and they were positive. Currently, the World Bank is processing the assessment results. The selection of an IT company to develop the eKYC platform is expected to take place in November 2024.

Posta Moldovei corporate governance and eCommerce services portfolio development. The Economic Council Secretariat (ECS) initiated an assessment of Poșta Moldovei's capacity to integrate e-commerce and e-payment solutions, proposing this Technical Assistance (TA) and investment project to the EBRD and EIB. The project aims to promote the adoption of e-commerce tools and enhance financial and digital economy inclusion by leveraging Poșta Moldovei's existing network. The EBRD has completed its internal procedures, and a government decision is expected soon. The ECS presented the concept and expected outcomes to the National Bank Governor and promoted it at the Prime Minister's Office and the Ministry of Economic Development and Digitalization. Progress has been delayed within the Inter-ministerial Committee for Strategic Planning due to the Ministry of Finance, but the ECS continues to facilitate consultations with MoEDD, PPA, Poșta Moldovei, and MoF.

Digital economy and ICT sector development Program development. The Digital Transformation Strategy 2023-2030, approved by the Government in September 2023, prioritized the development of six sectoral action plans. The Ministry of Economic Development and Digitalization (MEDD) initiated the process of developing these programs, and the Economic Council Secretariat (ECS) is closely monitoring the development of the Digital Economy and ICT Sector Development Action Plan to ensure alignment with the objectives outlined in the iCouncil Roadmap. In June 2024, the ECS presented the updated Roadmap on Digital Economy and e-Commerce at the Moldova ICT Summit. The MEDD and FTA/USAID expressed support for promoting the majority of its actions within the draft e-Economy Action Plan. This collaborative effort is currently ongoing.

EBS Integrator to help harmonising with EU legislation. The process of EU integration and harmonization with over 27,000 European regulatory acts poses a significant challenge for Moldovan authorities due to limited resources and time. To address this, the Economic Council Secretariat (ECS) has initiated consultations to explore options for leveraging EBS Integrator, Big Data Analytics, and Machine Learning. Both local and international companies have shown interest in contributing to this initiative. The ECS is collaborating with EBS Integrator and the Ministry of Energy to develop a tool to support public servants in the harmonization process, enhancing productivity and the quality of legal framework drafting. A prototype of this tool was presented to the Ministry of Energy in September 2024, receiving positive feedback. The ECS is now planning pitching meetings with potential donors to secure funding for further development of this AI-powered tool, which could greatly improve the efficiency of the EU harmonization process in Moldova.

Development of the Trade Information Portal. Micro, Small, and Medium-Sized Enterprises (MSMEs) play a crucial role in driving economic growth, job creation, and innovation in Moldova. With Moldova's entry into several external trade agreements, significant opportunities have arisen for MSMEs to expand their businesses and explore new markets. However, these opportunities remain largely untapped due to various challenges, including limited access to trade-related information, inadequate understanding of trade agreements, and difficulties in navigating complex trade regulations. The UNDP Moldova launched an initiative to address these challenges and assist MSMEs in leveraging trade opportunities. The EC Secretariat was proposed to contribute to the project by providing access to its digital platforms. The involvement of the ECS community was considered valuable, along with the ECS's existing information resources, such as its webpage and BizRadar app. The ECS participated in the initial conceptualization and development of the Terms of Reference (ToR) for the project. The selection of the consulting company was planned for September 2024.

Moldova's Energy Sandbox - phase 2

A newly enacted law empowers the Ministry of Energy to create a controlled environment, or "sandbox," within the energy sector, allowing for temporary, customized rules for specific areas or market participants to test innovative energy solutions. By using modern market design and digital tools, Moldova aims to navigate regulatory hurdles and promote innovation in its energy sector. The Economic Council Secretariat (ECS) supported the Ministry of Energy in drafting and promoting the Sandbox law, facilitating transparent consultations to ensure diverse perspectives were considered. The Law on Innovative Energy Regulatory Test Spaces was published in the Official Gazette on September 5, giving the government six months to develop implementation regulations. On September 20, the ECS hosted a meeting of Working Group 3, "Attracting and Retaining Private Investment," to review the draft regulations for Law 225/2024 on Innovative Testing Spaces, presented by the Ministry of Energy before the launch of public consultations on the Regulatory Impact Assessment of the drafts.

Initiative to Enhance Private Sector Understanding of EPR in Moldova

The EC Secretariat and USAID MISRA is working to help Moldovan businesses understand and comply with Extended Producer Responsibility (EPR) regulations for packaging and packaging waste. The ECS has partnered with Saiph Consulting House to conduct a comprehensive assessment of the current legal framework and develop recommendations for improvement. They are also creating a user-friendly guide to help businesses understand their EPR obligations. The ECS has submitted a position paper to the Ministry of Environment outlining the findings of this assessment and proposing solutions. They are also planning to organize a meeting to discuss these findings and potential changes to the regulatory framework.

EC Working Group No. 2 “Facilitating the Green Transition and Cross-border Trade”

ECS facilitated the EC WG2 meeting, which focused on assessing compliance with packaging and packaging waste management regulations under the current legislative framework. The meeting participants, including representatives of business associations, collective management systems, SMEs and large companies, as well as development partners, identified several challenges that prevent businesses from complying with packaging regulations. These challenges include: unclear legislation, high costs and inadequate infrastructure for collection and recycling of packaging waste, complicated registration procedures (for collective and individual waste management systems). In essence, the meeting revealed that businesses are struggling to comply with packaging legislation due to a combination of regulatory uncertainty, high costs and logistical challenges. More...

Inter-ministerial WG for the Promotion of a Green and Circular Economy

ECS participated as a member of the Inter-ministerial Working Group for the Promotion of a Green and Circular Economy in a meeting hosted by the MEDD on 22 August to discuss the promotion of a green and circular economy in Moldova. USAID FTA presented a comprehensive study on the development of climate finance and the preliminary assessment of ESG reporting for companies, commissioned by MEDD. Stakeholders from the public sector, private sector and civil society attended the meeting to exchange views on aligning national strategies, climate finance, ESG and the transition to a more sustainable economy.

Elaboration of the Concept on support and resocialization of imprisoned women.
The meeting with the State Secretary of the Ministry of Justice, Ruslan LUNGU was held on September 9th. Thus, the Concept was discussed with the SS and the representatives of the National Penitentiary Administration. Consequently to this meeting, a visit to Rusca women prison was rendered for a better understanding and mapping of the needs of the imprisoned women in the context of our program, on October 7. Other several meetings with relevant stakeholders were held, and an extended meeting for sharing the information on similar projects implemented by other stakeholders and deciding upon everyone’s contribution will take place on November 4th.

Preventing and combating violence against women and domestic violence. The ESC Gender Expert attended several Joint Coordination Meetings organized by the National Agency for Preventing and Combating Violence, focused on priorities and activities related to preventing and combating violence against women and domestic violence. Representatives from public authorities, civil society, development partners, and other stakeholders attended the discussions. The ECS Expert emphasized the National Council for Economic Empowerment and Gender Equality's commitment to the economic empowerment of women who are victims and survivors of violence, by joining efforts for creation of regional ecosystems.

Integrating 100 Women in BPO sector.  Integrating 100 Women in BPO sector Following a meeting chaired by the Prime Minister in July 2024, 100 Moldovan women from various regions of the country will receive training to work in the Business Process Outsourcing (BPO) sector. The concept of training 100 women from Cahul and Balti was discussed during a meeting between experts from the Economic Council Secretariat (ECS), the Ministry of Economic Development and Digitalization (MoEDD), the National Employment Agency, BPO companies, UN Women, the UK Embassy, the Embassy of Sweden, and representatives of the University for the Elderly. The participants had initial ideas for contributing to the project, and on 24 October ECS Gender Expert performed a field visit to Cahul, on the occasion of promoting the Concept as a panelist at Cahul IT Connect Conference, First Edition - Dialogue about the future of the IT industry in Cahul, where she discussed with relevant stakeholders from the region.

Single platform providing information regarding the access to finance for women-led businesses. Based on an assessment and feedback from women entrepreneurs, the ECS has identified a need for a comprehensive online platform providing information on accessing finance for women-led businesses. The ECS has discussed with a developer assisting on the BizRadar platform the possibility of developing a presentation of the platform's concept. A commercial offer has been submitted to UN Women, requesting funding for this initiative. The concept of the platform will be presented to the public at a joint event with UN Women dedicated to financing women in Moldova.

Meeting of the National Council for Economic Empowerment and Gender Equality. On September 19, the National Council for Economic Empowerment and Gender Equality held a meeting to present the report "The gender pay gap in Moldova: recent trends and policy recommendations," prepared by the International Labour Organization (ILO). The report aims to provide a statistical update on the gender pay gap in Moldova and to review the existing legal and policy framework aimed at combating gender inequality in the labor market. The report reveals that women in Moldova earn up to 15% less than men, with this gap being even wider for women caring for children. The ILO report offers recommendations to reduce the gender pay gap, including promoting paternity leave and reintegrating mothers into the labor market. This event is part of a series of measures outlined in the Council's Roadmap.

Joint meeting of the Gender Experts from the Region (Moldova, Georgia, Armenia). The exchange of best practices between the gender experts of the Investment Councils in different countries is always an exceptional tool for promoting gender equality and equal treatment. Based on the discussions, it was agreed to organise regular meetings and joint activities.

Economic Council plenary meeting - the PM and the EC members meet to have a constructive discussion

On July 30, 2024, Prime Minister Dorin Recean chaired a plenary meeting of the Economic Council, discussing economic challenges and solutions with business representatives. He emphasized the government's focus on economic growth, productivity, and competitiveness, noting that de-bureaucratization and digitalization could boost GDP by 2.5%. The PM also highlighted the IT sector's growth, with Moldova having the highest share of employees in this field in Europe. Other topics included Free Economic Zones, IT parks, access to financing, workforce provision, and irrigation. More...

The 9th session of the UNECE Steering Committee on Trade Capacity and Standards. The Economic Council Secretariat (ECS) attended the 9th session of the UNECE Steering Committee on Trade Capacity and Standards at the invitation of the Director of the UNECE Economic Cooperation and Trade Division. The ECS Expert's statement on behalf of the Moldovan delegation shared Moldova's experiences in trade facilitation and circularity. The statement highlighted Moldova's progress in implementing WTO trade facilitation measures and emphasized the potential of additional measures to boost Sustainable Development Goals (SDGs) and regional integration. The ECS called for continued UNECE support in capacity building, particularly in the areas outlined in a recent UNECE study on "Assessment of Trade Facilitation Framework - Republic of Moldova," conducted with the involvement of the EC/NTFC. The ECS further proposed tracking Moldova's progress in the digital and circular economies, building upon the UNECE methodologies adopted last year. This engagement underscores Moldova's commitment to leveraging international cooperation for sustainable economic growth and development.

SDG content on EC site - cooperation with UN Resident Coordination Office. As a dedicated member of the United Nations, Moldova is actively integrating the Sustainable Development Goals (SDGs) into its national strategy. To support this effort, a new Moldova Sustainable Business subpage will be launched on consecon.gov.md, with support from the UN Resident Office. This new resource aims to inform Moldovan businesses about the importance of SDGs and how they can contribute to achieving these goals. The UN team has already finalized the initial content for the subpage. The next stage involves integrating essential information about the SDGs. Once completed, the updated content will be incorporated into the final version of the page.

Workshop on the implementation of ESG principles by SMEs in the RM. On September 5 and 6, 11 women entrepreneurs and promoters of sustainable initiatives participated in a workshop on the implementation of Environmental, Social, and Governance (ESG) principles by Small and Medium-Sized Enterprises (SMEs) in Moldova. The event was organized by the National Confederation of Employers of the Republic of Moldova and the Foreign Investors Association, with the support of Danish Industry (DI) and funding from the New Democracy Fund. The training session was opened by Ms. Veronica Arpintin, State Secretary of the Ministry of Economic Development and Digitalization, who emphasized the strong commitment of the Republic of Moldova to adopting European sustainability standards and the need to prepare SMEs for integration into the EU and global value chains. This workshop is part of the activities outlined in the Roadmap of the National Council for Economic Empowerment and Gender Equality.

Working Group 6 “Development of the Labor Market” on NEET. On August 5, 2024, ECS organised the meeting of WG6 to discuss the issue of social inclusion of NEET youth and their activation in the labour market. According to a recent study by the International Labour Organisation, Moldova has a staggering 134,000 young people aged 15-34 who are not in education, employment or training (NEET). Of these, 60% are girls and women. Despite existing youth policies and programmes implemented by the National Agency for Youth, participants at a recent meeting stressed the urgent need for a more comprehensive, multi-faceted approach to tackling the problem. This national programme should include strategies to bring NEET young people back into education and employment. The ECS will continue to monitor developments in this area as the government seeks to address this pressing social and economic challenge.

Meeting with the Board of AFAM (Association of Women Entrepreneurs of Moldova). On September 13, the ECS Gender Expert met with the Board of the Association of Women Entrepreneurs of Moldova (AFAM). The meeting focused on discussing the progress made and ongoing activities within the framework of the National Council for Economic Empowerment and Gender Equality's Roadmap. Additionally, the participants explored potential new initiatives aimed at strengthening the entrepreneurial path of women in Moldova.