Investing in Moldova - Day 1 and 2

So, I just started as the International Coordinator at BCD (Business Connect & Development) in Chisinau, Moldova. The team is young and energetic, and focused on helping their members improve their business and helping them grow through international business. Most of the companies are SME's (Small Medium Enterprises) who has a good product/service but is in need of investment. The problem is that the banking sector in Moldova has zero competition and is giving out loans at 12,5 % - If you are lucky! And they take forever to issue a loan, because the employees themselves want extra money to speed up the process. The people who suffer are the people who wants to expand their business but gets stuck waiting for additional finance, and then gets trapped by liquidity needs.

For my assignment I was presented to a company called STAR Coffee, a vending machine company that operated 200 machines in Moldova. They had set-up a good business and where making 11.000 € pr. month in profit - thats 132.000 € a year in profit (around 982.000 DKK). Now that's a sweet profit! They want to expand their business with 1000 machines, for which they would need an investment of 500.000 €. So that is my first task - go find some investors that want to make some money.

Besides that, I'm learning about other investment possibilities through the BCD network.

They used to export "Bio briquettes" for lightning up grills. Instead of using coal briquettes, these bio briquettes where made out of walnut shells, that were compressed and could heat up a grill for twice as long as coal, has no co2 emission, and didn't require  lighter fluid to ignite. They used to export to Denmark and Sweden, but the orders stopped due to problems with one of the suppliers. They are still making the product, they just need a buyer.

There are others possibilities which I will learn more of the coming days - tomorrow I'm going to visit a Moldovan Animation company, the second in the entire country, and see their business. I had a meeting with the CEO today and he seemed very professional and eager to get started with the business. He has a team in place, and it's going to be interesting to see the business.

Another CEO I met with shortly today had a company the "reads" the consumption of electricity for companies and private households. They had more than 200.000 clients and where interested in new ideas to improve their business, thus getting the tender for the next 5 years. I'm scheduled to met him again and learn more.

For now, I will go to bed before I visit the Animation company and return to my office (yes I have my own office).

I'll keep you updated :)

Jesper