Andriy Mokan on foreign investment

Rostyslav Shurma, Deputy Head of the Office of the President of Ukraine recently made a reasonable remark: “we have to understand that we will not receive $700 billion in state aid.”

And this is 100% true. We can only count on private capital and investments.

Only the volume of construction work over the next 10 years is estimated by UIF to be at least $100 billion, not counting investments in the creation of new factories.

A few theses about what foreign investors are interested in:

Restoration of infrastructure and construction of a new one

Based on the experience of the end of any wars, investors understand that the demand for:

  • Building and construction materials (armature, rental)
  • Construction machinery (machines, cranes, excavators etc)
  • Raw resources (clay, sand, chalk, alabaster, rubble)

Agro-processing

Investors understand that Ukraine has the potential to both increase productivity (with more intensive use of modern technologies) and deeper processing of agricultural products.

Energy

It is a very capital-intensive sector, but there is a lot of interest here, despite the fact that electricity consumption has decreased by 30% due to the war and the economic downturn.

Medicine and rehabilitation

It will be one of the fastest growing sectors in the next decade. Treatment and rehabilitation of the wounded.

Application of new  implantation and rehabilitation technologies.

In addition, everyone knows that due to less strict regulation, Ukraine was already a mecca for medical tourists in the reproductive technology, rejuvenation, dentistry and other sectors before the invasion.

Robots and mechanical engineering

Industrial recovery will require new approaches and technologies. For example, it makes no sense to restore a metallurgical plant with blast furnace production and tens of thousands of people.

At modern enterprises, 10 times fewer people will work, and technological processes will be robotic.

Large-scale reconstruction projects of Ukrainian cities and infrastructure will create a huge demand for construction machinery, machines and equipment.

Logistics

Ukraine has every chance to become not only the new manufacturing China of Europe, but also the most important regional transport hub with new cargo air transportation terminals, a developed logistics economy, and new deep-sea ports.

This is not an exhaustive list. With the development of the economy, sectors will be fragmented, complexity will increase along with labor productivity.

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