Transcript why invest in ukraine?

UKRAINE:
LARGEST MARKET IN
EASTERN EUROPE
COUNTRY PROFILE…
DID YOU KNOW?

Population 46,2 million of which 68% - urban population

Territory 603,7 thousand sq.km = the largest in Europe

GDP per capita – EUR 2,400 (as of 1H2008)

the geographical center of Europe is situated in Ukraine

#1 granite reserve in the world with the 45% of the world reserve

6th in the world in production capacity of metals and mining

56% of land is arable and 1/3 of the world’s “black soil” is found here
And still….

28% of population living under the nationally-defined poverty line

Unemployment: 3% (end of 2008); 9% (forecasted in 2009)

Average life expectancy 65Y male, 76Y female
FOREIGN DIRECT INVESTMENT IN UKRAINE
(by sectors, by years, by source countries as of July, 2008)
WHY INVEST IN UKRAINE?

Strategic market access at the crossroads of East-West
and North-South trade routes + WTO accession

Sizable domestic market (46 mln consumers – the largest
market in EE)

Low labour costs and highly qualified human capital

Rich in natural resources
PRIORITY SECTORS FOR INVESTMENTS
SECTOR: Alternative Energy
 Biomass and wind are primary renewable sources of
energy
 Sector capacity (annual fuel demand): 110-140 mln tons of
the “conditional fuel” (currently 42%)
 Biomass potential: 22 mln tons
 Territory: 42 mln hectares of arable land for rape
production
 Investments needed for sector in 2003-2010: $ 2,57 bln.
 Special Governmental support program exists (Law on
bio-fuel development adopted in June 2007)
COMPETITIVE ADVANTAGES:
 availability of land
 low-cost labor
SECTOR: ICT / High Tech
 Total market size - about $ 2,2 billion
 Growth rate in 2006 - 28% (Russia – 18%, Poland – 15%, Kazakhstan
– 33%)
 4,000 companies and appx. 47,000 workers involved

Competitive advantages include:
 Qualified and relatively low cost skilled labor
 Highly-ranked technical schools
 Medium-high innovation level: Technological Activity Index – 0.600
(ranked 39 among 117 countries)
 Ukraine rated 5th in terms of the number of certified IT specialists by
Brainbench
SECTOR: Agriculture and Food-Processing

Total market size - about $1 billion

Annual growth rate of 20%
COMPETITIVE ADVANTAGES:
 More arable land than France and Germany
combined
 Excellent soils in large fields and very large
farms available
 Good profits in simple arable cropping at low
rents
 good geographic position for large export
markets: Russia, Kazahstan, and EU
member states
 skilled and inexpensive labor
INVESTMENT OPPORTUNITIES:
 Processing of fruits and vegetables
 Drying and freezing of fruits and vegetables
SECTOR: Infrastructure and Logistics
Development
Investment in infrastructure
 Roads, hotels, airports, bridges
etc.
Logistics development incentives:
 4 out of 10 European transport corridors run through Ukrainian territory
 Great amount of construction material deposits in Ukraine
 EUR 20 billion are allocated by the EC and EIB for net Trans-European
transport corridor development
 Greater openness of Ukrainian economy as a result of WTO accession
 Growth of retail trade in Ukraine
SECTOR: Tourism
 Potential recreational territories 12,8% of the country's area
 Unique health-improving resources:
more than 500 mineral water and
clay deposits and 47% of beaches
situated along the sea shore
territory of the Black Sea and Azov
Sea
 Diversity of landscape: sea,
mountains, steppe…
 Ecotourism, cultural and historical
tourism, village tourism,
gastronomic tourism are niche
opportunities!!!
USEFUL LINKS
Ukrainian Center for Foreign Investment Promotion:
 http://www.investukraine.org/
Doing Business in Ukraine (Government Portal)
 http://kmu.gov.ua/control/en/publish/category?cat_id=929504
Investment Proposals of Ukrainian Companies (Ukrainian Chamber of
Commerce and Industry)
 http://www.ucci.org.ua/dnload/invest.pdf
Doing Business in Ukraine (PWC, 2007):
 http://www.pwc.com/Extweb/pwcpublications.nsf/docid/975CF16F2D406
D9180257045004291BA
THANK YOU!
Yuliya Shcherbinina
Public-Private Partnership Officer
United Nations in Ukraine
1 Klovsky Uzviz, Kyiv, 01021
Tel: +380 44 253 9363
Fax: +380 44 253 2607
[email protected]