UkraineInvest Invest in Innovation and Opportunity
Economic Growth UkraineInvest Strategy 2020 More reforms enacted in 4 years than in previous 23 IV. GROWTH AGENDA Reforms effect: III. STABILIZATION & 2017=2.5%, Q1 2018=3.1% TRANSFORMATION - I. UKRAINE UNDERGOING Key 2017-2018 reforms adopted TRANSFORMATION Institutions-building Judicial (including Law on Anti-Corruption Court) Health Macro-economic stabilization w/IMF Education $25 billion of support Pensions (IMF compliant) II. CRISIS Decentralization Privatization/SOE reform 20% GDP (Public Admin Reform) Banking sector reforms 60% UAH Law on Concessions - > 90 out of 180 “pocket” banks closed 7% of territory occupied Law on Inland Waterways $70bil stolen from treasury Anti-corruption court law passed ! $15K on current a/c (!!) - De-regulation EU vector Gold reserves > 1 mo imports 2014 - Transparency Visa-free regime with 122 countries (including Schengen zone) EU-UA Association Agreement – 2017 40.5% share of merchandise exports to the EU DCFTA in 2017 (+30% increase comparing to 2016) The Canada-Ukraine free-trade agreement adopted underway
Ukraine Launched Many Structural Reforms Ahead of its Peers UkraineInvest Implemented In progress Implemented in other countries Not started Slovak Rep. Anti-Corruption Ukraine Colombia Georgia Poland Poland Public Public sector procurement Ukraine Georgia Slovak Rep. e-system New police Singapore Poland Georgia Ukraine Colombia Judicial Georgia Ukraine Singapore Slovak Rep. Poland reform Colombia Econom Slovak Rep. Georgia Ukraine Singapore Colombia Deregulation y Energy Energy Slovak Rep. Ukraine Georgia Poland reform Start of +1 year +2 years +3 years +4 years +5 years >5 years reforms
Significant Leap Ahead in Key Rankings UkraineInvest Ukraine vs peers in Doing Business ranking Ukraine tops EMEA* list for potential investment Reforms passed by Ukraine in recent years enabled Fund managers are eyeing Ukraine for deals for the next significant rise in Doing Business ranking 12 months, Institutional Investors’ survey 2017 says Ukraine 2012 2013 2014 2015 2016 2017 2018 32% 76 Romania 26% 100 113 Nigeria 25% 117 126 125 132 Kenya 24% 152 Ukraine Brazil Argentina India *EMEA – Europe, Middle East, Africa
FDI Flow for 2013-2017 UkraineInvest In 2017 FDI flow reached $1.63 billion , which is 20% higher than in 2016, showing structural restoration of investment activity: FDI, bn $ Including (FDI for 2017): 2.0 1.6 Food processing ( ↑ $255 mln) 1.4 Mining ( ↑ $240 mln) Crisis Economic Metallurgy ( ↑ $85 mln) growth -4,6 Energy ( ↑ $220 mln) Telecommunication ( ↑ $90 mln) -13.0 Finance ( ↑ $300 mln) 2013 2014 2015 2016 2017 Source: State Statistic Services of Ukraine
BRAINS & GRAINS INNOVATION & OPPORTUNITY INVESTMENT OPPORTUNITIES IN UKRAINE
Opportunities UkraineInvest ENGINEERING AND R&D CENTERS (ER&D) By 2020 European R&D market will rise by 25% to $26.5 B MANUFACTURING • INFOTAINMENT • AUTOMOTIVE • ROBOTIC INDUSTRY PROCESS BLOCKCHAIN • AGRI-FOOD AUTOMATION • DIGITAL 4.0 According to Blockchain Research • AVIONICS ELECTRONICS Institute, Ukraine is among leaders in blockchain innovation • WEB AND MOBILE • MEDIA SOLUTIONS By 2021 global market will rise • FASHION • 2D/3D MODELING tenfold to $2.3 b INDUSTRY CREATIVE INDUSTRIES ROBOTIC PROCESS AUTOMATION (RPA) By 2025 global market will rise 80 times to $80 B ПРОМИСЛОВІСТЬ 2.0 – ТЕХНОЛОГІЇ 4.0 3.0
Industrial Opportunities (notes to previous slide) UkraineInvest • > 20 foreign companies AUTOMOTIVE • > € 500 M of investment INDUSTRY CLUSTER • ~ 60 thousand of employees AGRIFOOD • efficient production platform in Europe HOUSEHOLD APPLIANCES • production volume in 2017 – $ 0.6 B AND ELECTRONICS • DCFTA and Association agreement with EU • 16 FTAs with 45 countries • large agricultural raw materials base (1/3 of Europe’s arable land) MANUFACTURING • average production growth of >21% during 2014-2017 ($17 B in 2017) AGRI-FOOD • proximity to large sales markets (EU, Middle East) • high-income countries add >US$200 of value by processing 1t of agricultural products, while developing countries add < US$50 - Ukraine’s opportunity in agri-food amounts to ~$9.3B • Ukrainian IT outsourcing market has grown by nearly 30 times over the INFORMATION last decade, from $110 M in 2003 to about $3.6 B in 2017 TECHNOLOGIES • 18 Ukrainian IT companies are among top-100 global IT service providers • 130’000 engineering graduates annually (including 16’000 IT graduates) • 33 Ukrainian films were released in 2017 (12 films in 2013) CREATIVE • > UAH 1 B of government support for film industry in 2018 MEDIA • strong media content editing center INDUSTRIES • global brands (Apple, Diesel, Lacoste, etc.) shoot commercials in Ukraine • >15 global fashion brands have production facilities in Ukraine • > 220 thousand of employees FASHION INDUSTRY • production volume in 2017 – $ 0.8 B • elegant and striking design collections from Ukraine have now captured the attention of elite fashion houses and their clients around the globe
Prerequisites for Automotive Industry Development in Ukraine UkraineInvest Strong existing manufacturing base Automotive Industry of Ukraine IT solutions Human capital • infotainment • robotic process automation
Marriage of Automotive and IT UkraineInvest A number of Ukrainian IT companies already cooperate with world automotive brands and deliver to them high-tech products: Automotive and mobile navigation • Maps • Human-machine interface (HMI) • Computer vision • Infotainment • CLIENTS AND PRODUCTS
About UkraineInvest UkraineInvest MISSION: TO ELEVATE UKRAINE’S PLACE IN THE GLOBAL ECONOMY THROUGH SUSTAINABLE ECONOMIC GROWTH VISION: TO UNLOCK INVESTMENT FROM EXISTING AND NEW INVESTORS PRINCIPLES: OUTREACH COLLABORATION COMMUNICATION
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