The Cabinet of Ministers of the Republic of Moldova approved the Strategy regarding the administration of state property

The advocacy actions of the Soros Foundation Moldova have led to the commencement of a profound reform of the administration of public property in Moldova. As a result, transparency and accountability of the state will increase.

In Moldova, state-owned companies remain an essential element in the Government’s range of tools for creating social and public value, but also a means of managing market failures, mitigating crises, and a rapid reaction tool in exceptional situations. Yet, at the same time, they can become a source of government failures under poor administration or inappropriate presence in specific sectors that inhibit free competition. For this reason, the Soros Moldova Foundation intervened to support this sector’s transformations.

As a result of the advocacy efforts of the Soros Moldova Foundation, in partnership with the „Expert-Group” Independent Analytical Center and the Government’s Public Property Agency, the Strategy was approved by the Cabinet of Ministers and is being forwarded to Parliament. The vision of the Strategy is for the state to make the administration of public property more efficient and become a responsible, transparent, and credible owner that provides opportunities for development and profitability to state entities. Soros Moldova Foundation promoted the necessity to develop this Strategy and obtained the support of the authorities and development partners in developing the document.

Enterprises in which the state has at least a 30% share, own 12% of assets in the economy and generate sales of $1.14 billion (5.8% of the total in the economy), and provide workplaces for 6.4% of total employees (34.0 thousand). The capitalization level of state-managed enterprises’ assets is lower than the average for the economy.

Almost 2/3 of the total sales of state-controlled entities are generated by entities in the field of Energy and Utilities, closely followed by those in Electronic Communications, Road and Railway Construction, and Transportation. Regarding the distribution of employed personnel, the structure is more balanced, and the largest employers are companies in Transport (18.7%), Energy and utilities (16.2%), and Postal and courier activities (14.8%).

The Soros Moldova Foundation remains dedicated to supporting the authorities that implement reforms and improve the lives of citizens.