13.08.2020

Ukrainian country profile issued by Bilfinger Tebodin together with the ACC in Ukraine

Bilfinger Tebodin made an overview of the Ukrainian market recently issued by the American Chamber of Commerce. It features expert opinion in the context of international finance institutions’ and donors’ financing, foreign direct investments and M&A trends.

In 2019 Ukraine again has made a great leap in the World Bank’s ‘Doing Business’ ranking, climbing seven positions up and taking the 64th place among 190 economies for the first time since the first edition of the index. Positive dynamics were demonstrated by six indicators out of ten, including dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors and trading across borders.

According to the ‘World Investment Report 2019’ data, the inflow of direct investments to Ukraine during 2015-2018 demonstrated the recovery dynamics after a dramatic tenfold decline in 2014. In 2018, foreign direct investments amounted to USD 2.355 billion and were directed towards the industry, construction, agriculture, information technologies, wholesale and retail trade, and transportation sector.

International financial institutions continue to be leading investors to move Ukraine towards transition and in applying the best practices in all sectors of the economy. There is an increasing trend among international donors of coordinating and uniting efforts to co-finance implementation of programs of joint interests to stimulate sustainable development.

However, despite a significant amount of international projects observed last year in Ukraine investors and financing parties still need to overcome some challenges to realize market opportunities.

As of 2020, the volume of investments and M&A deals has decreased significantly due to Covid-19 pandemic. However, according to KPMG M&A Radar highlighting the first half of 2020, the directions of investments did not change and as in previous years investors has been focused on agriculture, real estate, transport and infrastructure, innovation and new technologies, which together account for about 90 % of the volume of all concluded agreements. In terms of markets trends, Covid-19 further amplifies the need for industrial automation and digitalization that have become vital for business. Overall, investment in innovation, especially through digitalization, is recognized as the main driver of productivity, long-term prosperity and economic growth for advanced economies.

Our and external market experts believe that further recovery of Ukraine will be driven by a favorable geographic location of the country, competitive workforce, availability of attractive private sector investment targets and innovative technology focus as well as growing business opportunities through public-private partnerships and privatization.

The full financial country profile is available on the website of American Chamber of Commerce in Ulkraine or you can download it by filling a short form on the right of the page

Download the full analysis of the Ukrainian market

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