Berlin, 12 June 2024 – Ukraine and Germany, alongside 12 other countries and 17 development institutions and international organisations, have formed the SME Resilience Alliance for Ukraine. 

The initiative was launched at the International Ukraine Recovery Conference in Germany. All founding members will contribute to the Alliance through financial investments, policy advice, or development programmes. The total support amounts to over EUR 7 billion for current and new SME programmes.

This initiative is strategically significant for Ukraine's economic recovery. According to the United Nations Development Programme (UNDP) report “Assessment of the Impact of the War on Micro, Small, and Medium Enterprises in Ukraine,” SMEs form the backbone of the Ukrainian economy, representing over 90% of all businesses. The war has inflicted unprecedented challenges and damage for entrepreneurs, making the unification of key recovery players essential for sector development.

Through the Alliance, the UNDP will promote entrepreneurship, job creation, and an innovative business environment, improve access to finance and market opportunities, and enhance business legislation.

Commenting on the initiative, First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko said that small and medium enterprises were the foundation of the Ukrainian economy and a crucial part of the country’s economic resilience. 

“According to the State Statistics Service, 1.7 million SMEs were operating during the first year of the full-scale war, providing one in five jobs,” Svyrydenko said. “They now play a key role in the country's recovery. Our goal is not only to help them recover but also to create conditions for their development. I’m sincerely grateful to the partners joining the SME Resilience Alliance – this will help implement our new SME recovery strategy, which will be adopted soon.”

UNDP Resident Representative in Ukraine Jaco Cilliers said that strengthening the capacity of the Ukrainian government in recovery efforts, particularly economic recovery, was a priority for UNDP in Ukraine. 

“This also supports Ukrainian entrepreneurs, whose unique experiences serve as an example to the international community,” Cilliers said.

“Thanks to our valuable collaboration with the Ministry of Economy of Ukraine and our international partners, we’ve already provided opportunities to thousands of entrepreneurs across the country. This partnership within the new Alliance signifies ongoing support for Ukraine’s sustainable development and economic resilience and a strategic approach to rebuilding the business environment. Together, we can attract more resources to ensure every entrepreneur in the country receives the support they need."

The Alliance will focus on three areas:

1. SME Policy Reform: Creating a favourable business environment, implementing the SME Strategy until 2027, providing technical consultations on the regulatory framework and support programmes, and boosting entrepreneurs' skills, with an emphasis on access to international markets in the context of EU accession.
2. Institutional Support: Forming and supporting institutions that mobilise funding, provide insurance tools, and support programmes. The Alliance plans to transform the Business Development Fund into a national development institution with international partners such as Germany, the EU, the World Bank, the Japan International Cooperation Agency, and the Luxembourg Development Agency.
3. Access to Finance: Providing funds to Ukrainian banks to support SMEs, including private capital, risk-sharing tools, guarantees, grants, loans, and interest subsidies.

The next step for the SME Resilience Alliance is to establish a coordination mechanism led by Ukraine and Germany to support the implementation of the SME Strategy, mobilise support, coordinate donors, and discuss and facilitate reforms in the SME sector. Each Alliance member will be represented by a coordinator.

Members of the Alliance:

• Countries/bodies: Austria, Canada, Estonia, the European Union, Germany, Japan, Luxembourg, the Netherlands, Norway, Spain, Switzerland, Ukraine, the United Kingdom, and the United States Agency for International Development (USAID).
• Development institutions, international organisations and banks: Belgian Investment Company for Developing Countries, Central Project Management Agency (CPVA), Council of Europe Development Bank (CEB), German Corporation for International Cooperation (GIZ), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB)/European Investment Fund (EIF), International Finance Corporation (IFC), International Labour Organization (ILO), International Organization for Migration (IOM), International Trade Centre (ITC), Japan International Cooperation Agency (JICA), Credit Institute for Reconstruction (KfW), Luxembourg Development Agency (LuxDev), Organisation for Economic Cooperation and Development (OECD), United Nations Development Programme (UNDP), United Nations Industrial Development Organization (UNIDO), and the World Bank.

Media Inquiries: Yuliia Samus, Head of Communications, UNDP Ukraine, yuliia.samus@undp.org