Buyer-led approach to spur growth in Moldova’s most competitive value chains.
Context
Dexis supported USAID’s Competitiveness Enhancement and Enterprise Development (CEED) I and II projects, which sought to spur growth in Moldova’s most competitive business sectors and value chains. Through targeted firm-level assistance, investment and trade promotion, and policy-related activities to improve the business enabling environment, CEED improved the efficiency of and opened markets for leading value chains and industry associations in the wine, information technology, apparel, tourism, footwear, and home furnishing sectors.
Approach
Dexis conducted audits and assessments to tailor firm-level assistance interventions to specific needs of targeted companies and private-sector support institutions with an aim to enhance productivity, attract investment, upgrade technology, adopt international standards, and open new markets in the European Union and the Central and Eastern Europe region. The assessments included:
- A sector-wide productivity assessment of Moldovan apparel manufacturers
- Analysis of the workflow processes of the three main apparel companies to determine where short-term productivity improvements could be made, where investments were needed, and where IT solutions would provide significant returns
- Inspection and evaluation of the production and processing facilities of a major Moldovan wine producer, highlighting major issues in meeting quality control standards and outlining problematic production areas as well as operations and sanitary issues, to help prepare for the visit of potential UK buyers
- A technical audit of a spinning facility, including evaluation of processes to determine problems in specific areas including stripping, staining, unraveling, and business processes
Achievements
Under CEED I and II, productivity improvements in the three main apparel companies resulted in productivity gains and faster delivery times, which resulted in one company attracting a Dutch fashion retailer as a client and discussions with two more. Improvements in sanitary and production conditions as a result of the technical assessment results helped a wine producer successfully introduce a new wine brand “Taking Root” in the UK market. Altogether, more than 20 firms are selling in overseas markets as a result of Dexis’ technical assistance. Under CEED II, more than 295 companies received assistance and saw a 49% increase in sales. The apparel sector saw a 20% increase in productivity in those firms receiving tailored assistance. Dexis was instrumental in facilitating linkages between companies with European buyers, which resulted in an increase of $1.2 million in sales in new export markets in Poland, Romania, and Russia. Moldovan wine sales to EU destinations increased to 17% of total exports in 2013 by value, and in 2014 bottled wine exports rose to 36%, despite an embargo by Russia.
