The current analysis presents an assessment of potential investment opportunities for five priority sectors crucial for the development of the Ukrainian economy, Kyiv School of Economics (KSE) said in a report entitled “Potential investment opportunities in considered sectors of the Ukrainian economy.”

These sectors demonstrate high potential for export, and production development, and exert a multiplier effect on other segments of the economy. The identified sectors include Energy, Agribusiness, Transport and Logistics, Green Steel, and Critical Materials. Notably, these sectors were outlined as priority development areas by the Government of Ukraine in June 2023 during the London Recovery Conference.

Additionally, they form part of the Ukraine Facility program for 2024-2027, currently under development by the Government of Ukraine in consultation with the European Commission.

The investment financing needs may arise from two different categories:

One of them is investment opportunities, valued at $292bn,  which evaluates the necessary investments needed for each sector to align with the goals of industrial development presented by the government in London.

The second category includes investment projects, totalling $74bn, compiled from both private and public companies. This information was gathered by KSE, with support from the Ministry of Economy of Ukraine and relevant ministries, during sectoral working groups held from July to November 2023. These groups involved over 600 stakeholders, including businesses, associations, NGOs, and government authorities.

The term for realizing the investment opportunities and projects is up to 10 years, with most of the projects concentrated in the next couple of years.

Summary of Collected Projects Structure:

The three sectors with the most substantial investment potential are  Energy – $167.6bn (57%), Transport and Logistics – $56.5bn (19%), and Agro-Industrial Complex – $34bn (12%).

The majority of investment projects came from companies in three sectors:  Energy – $60.0bn (81%), Green Steel – $7.4bn (10%), and Agro-Industrial Complex – $2.9bn (4%).

In terms of the number of projects by sector, the distribution is as follows: Energy - 201, Transport and Logistics - 73, Agro-Industrial Complex - 82, Green Steel - 46, and Critical Materials – 9.

The average project cost by sector (from businesses) is as follows: Energy - $298m, Green Steel - $161m, Critical Materials - $88m, Transport and Logistics - $37m, and Agro-Industrial Complex - $36m.

 

 

The Kyiv School of Economics (KSE) is a bne IntelliNews media partner and a leading source of economic analysis and information on Ukraine. This content originally appeared on the KSE website. The text of the full report is available here.

The Kyiv School of Economics (KSE) is a bne IntelliNews media partner and a leading source of economic analysis and information on Ukraine. This content originally appeared on the KSE website.