World Bank launches $593M program supporting Ukrainian SMEs amid ongoing conflict

Banking & Financial Services
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Ajay Banga 14th President of the World Bank Group | Official Website

The World Bank has announced a new initiative to bolster Ukraine's private sector. The program, valued at $593 million, aims to support 20,000 small and medium-sized enterprises (SMEs) in Ukraine. It is expected to create or maintain at least 40,000 jobs through government support programs initiated since Russia's invasion.

The Resilient, Inclusive, and Sustainable Enterprise (RISE) Program for Results will focus on enhancing the efficiency of state support for SMEs with an emphasis on green competitiveness. The initiative seeks to improve the business environment through government-to-business digital services and facilitate SME access to export markets. Ukraine’s Ministry of Economy will oversee the execution of this program.

Bob Saum, World Bank Country Director for Eastern Europe, stated: "The RISE Program is part of the World Bank's efforts to support the people and firms of Ukraine amid constant disruptions, power cuts, and labor shortages." He emphasized that the program strengthens Ukraine's focus on private sector development as a key driver for reconstruction and sustainable growth.

Funding for RISE includes $283 million from Japan-supported ADVANCE Ukraine trust fund, $300 million from the International Development Association (IDA) Special Program for Ukraine and Moldova Recovery, and $10 million from the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF). This results-based financing approach allows scaling up as more funds become available.

This program is part of a broader international support package designed to meet Ukraine's financial needs through 2024. Other projects include emergency operations in sectors such as health, education, transport, energy, housing, and agriculture. These projects utilize flexible designs to quickly disburse funds and can expand with additional financing.

Since Russia’s invasion began in 2022, support mobilized by the World Bank Group has helped promote reforms in Ukraine while providing essential services reaching over 15 million Ukrainians. To date, more than $50 billion has been facilitated by the World Bank Group for supporting Ukraine through various commitments and pledges from donors including countries like the United States, Japan, United Kingdom among others.