News
23.09.2024

“Economic Policy of Ukraine: Recovery During the War” The Ministry of Economy Presents Key Projects and Directions

The Ministry of Economy of Ukraine highlighted the key areas of work and strategies to overcome the challenges caused by Russia’s full-scale invasion during the event “Economic Policy of Ukraine: Recovery During the War” held on September 16, 2024.

“One of the government’s primary tasks is to maintain GDP growth and achieve economic self-sufficiency. We are moving towards our strategic goals: attracting investments into the real sector, increasing non-commodity exports, transforming the economy by raising the share of processing in GDP, and improving the labor market. For each of these priorities, we have a clear set of tools to achieve these objectives,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, during the presentation.

According to her, the Ministry’s current priorities include the digitalization of public services to facilitate business operations.

“This week, we are launching the digitization of public services through the ePermit service. Starting from September 18, the first digital service will be available to entrepreneurs, with more services to follow. For instance, starting in October, ePermit will allow businesses to obtain approvals for extending settlement deadlines for export and import transactions, something they have long been asking for,” noted Yuliia Svyrydenko.

First Deputy Minister of Economy, Oleksii Sobolev, during the event presented the SME Recovery Strategy for 2027. The government-approved document outlines the main directions of state policy in the SME sector, including rebuilding destroyed enterprises following the “build back better” principle. Special attention is given to the green transition, digital transformation, innovative development, and business inclusivity, engaging women, people with disabilities, internally displaced persons (IDPs), and veterans. The document incorporates OECD recommendations, aligns with the EU-Ukraine Association Agreement, and is synchronized with the Ukraine Facility Plan.

“Supporting SMEs is one of the Ministry of Economy’s and the state’s overall key priorities. The main task of the Strategy is to create conditions for SME development and provide partners with a clear understanding of where to invest, both now and after the war. The new strategy is inclusive and will foster business activity among women, people with disabilities, and veterans. It has been coordinated with businesses, the public sector, and experts, and has already been supported by our international partners. We already have a result — together with Germany, we launched the SME Resilience Alliance,” Oleksii Sobolev noted.

“SMEs have shown remarkable resilience in difficult times. Ukrainian businesses continue to work, enter new markets and look for investment opportunities. We are delighted to contribute to the development of the Strategy as it provides a cohesive and practical approach to business recovery. The UK is committed to supporting the Government of Ukraine in reshaping SME policies to be more responsive to business needs and encourage inclusivity and innovation. Practical support for inclusive policies is also important, so as part of the Good Governance Fund project, we are launching the Grow 2.0 educational programme for women who want to start or scale their business and learn new skills,” said Stefan Kossoff,  Director of Development Programmes at the British Embassy in Ukraine.

“USAID has been supporting Ukraine’s small and medium enterprises for a long time. We do this through supporting the Government of Ukraine to enhance the business enabling environment, strengthening access to finance, providing joining investments to increase efficiency, and sending businesses on trade missions to find new markets. In total, USAID has supported more than 28,000 SMEs in key sectors across Ukraine. With our partners at UKAid, we are proud to support the launch of the digital Pulse and ePermit platforms that will help make business registration and feedback about GOU services simpler and more transparent, making it easier for thousands of SMEs to do business every year,” said Theodora Dell, Deputy Mission Director at USAID Ukraine.

Deputy Minister of Economy of Ukraine for Digital Development, Digital Transformations and Digitalization, Oleksandr Tsybort, presented digital platforms for business. In particular, the Pulse platform was created to enhance interaction between the state and businesses. Through it, any entrepreneur can provide feedback on the work of state bodies.

“The Ministry of Economy is not just a regulatory ministry; we provide services to businesses. Over half of the ministry’s civil servants are engaged in processing inquiries. At the center of any service must be the client, in our case, the entrepreneur, around whom the service is built. Our goal is to create a convenient and transparent process for business: a few clicks — and the service is delivered. The Pulse and ePermit projects are steps towards a digital state with transparent communications between businesses and the authorities. Pulse’s vision is not just an online platform for complaints and suggestions but a reliable data source for implementing reforms. The platform should amplify the voice of businesses and become a practical tool that allows entrepreneurs to actively influence decision-making by government bodies,” emphasized Oleksandr Tsybort.

Additionally, during his speech, the Deputy Minister presented the ePermit platform. This initiative aims to digitize key services for businesses.

According to Oleksandr Tsybort, the Ministry of Economy plans to digitize 10 of the most popular permits and licenses by the end of the year. These include, among others, permits and licenses for export, import, occupational safety declarations, and conformity certification of medicines. Moreover, to reduce regulatory pressure on businesses, the Ministry is currently working on implementing remote inspections and transitioning to a new service standard, focusing not on penalties but on preventing violations. This will help to reduce the number of inspections of small businesses and lower corruption risks.

Reference information:

The Pulse platform was developed thanks to the Digital Transformation Activity (DTA)  with support from USAID and UK Dev. The implementation partner is the Better Regulation Delivery Office (BRDO). Its creation and development was made possible by the generous support of the American people through the United States Agency for International Development (USAID). The content is the sole responsibility of the Ministry of Economy of Ukraine and does not necessarily reflect the views of USAID or the United States Government. This platform was also developed with financial support from the UK Government’s International Development Program. However, the views expressed do not necessarily reflect the official policy of the UK Government.

The ePermit project is implemented by the Ministry of Economy of Ukraine in partnership with the Ministry of Digital Transformation and funded by the EU as part of the EU4DigitalUA project, implemented by FIIAPP. Consultation support for developing the legal framework is provided through the EU4Business: SME Policies and Institutions Support (SMEPIS) project, which is implemented by Ecorys in consortium with GIZ, BRDO, and Civitta, with financial backing from the European Union. Technical specifications for phase two were developed with the support of the EBRD. The Digital Transformation Activity, funded by USAID and UK Dev, provides a full cycle of ePermit project implementation. The implementation partner is the Better Regulation Delivery Office (BRDO). The main government beneficiary of the ePermit system is the Ministry of Economy of Ukraine.

The development of ePermit is part of the State Anti-Corruption Program 2023-2025 and is a component of the Ukraine Facility Plan.

The SME Recovery Strategy for 2027 was developed with expert support within the Good Governance Fund project “Business Revitalisation for Sustainable Growth” funded by UK International Development. The project delivery partners are Abt Global and Kyiv School of Economics.