The Digital Development Awards (“the Digis”) recognizes USAID projects that use digital tools and technologies to promote inclusive growth, foster resilient democratic societies, and support countries and communities working toward sustainable growth. The most recent awards recognized the Chemonics-implemented Moldova Future Technologies Activity (FTA) for their partnership with the Moldovan crowdfunding platform Fagura to support underserved small and medium enterprises (SMEs).
Regional conflict, an ongoing energy crisis, unprecedented inflation, rising gas prices, and other factors have made it challenging for Moldovan businesses to access traditional financing. With banks prioritizing support to more established companies, the SME financing gap exceeds 1.3 billion euros, with no viable non-banking alternatives. These financing constraints perpetuate high unemployment and low income levels, particularly in rural areas. The lack of funding opportunities also prompts skilled entrepreneurs to seek better prospects abroad, causing a “brain drain” that adversely affects the economy and intellectual capital.
Recognizing a critical opportunity to provide entrepreneurs with access to non-traditional banking services and loans that would allow them to transform their ideas into business opportunities, FTA partnered with community digital bank Fagura to expand their services to include businesses. The inaugural peer-to-peer digital lending platform is revolutionizing how SMEs access financing by connecting them directly with investors. FTA provided Fagura with technical support to ensure the platform was aligned with global standards and best practices. This included improvements to the application process, incorporation of multiple data sources, and increased collaboration with the Ministry of Economic Development and Digitalization, the National Bank of Moldova, Infodebit Moldova (the national credit history bureau), and other state institutions.
Fagura also launched an innovative SME Cashback Program that strengthened microenterprises by offering borrowers a 20 percent credit on their original loan value if repaid within two years. To ensure this program met the needs of entrepreneurs, FTA and Fagura employed a user-centered design process that incorporated feedback from potential investors, startups, and international experts. Within the first six months of the Cashback Program’s launch, more than 100 companies enrolled and the program raised more than $754,000. This ensures that information technology, e-commerce, and creative industries have the funding they need to thrive.
Fagura, recently recognized as one of Moldova’s “Startups with Greatest Impact,” has mobilized more than $3.6 million from 280 investors since its launch in 2019.
