Invest in Innovation and Opportunity Economic Growth UkraineInvest - - PowerPoint PPT Presentation

Innovation and Opportunity

UkraineInvest

Invest in

I. UKRAINE UNDERGOING TRANSFORMATION

• II. CRISIS

20% GDP 60% UAH 7% of territory occupied $70bil stolen from treasury $15K on current a/c (!!) Gold reserves > 1 mo imports

• IV. GROWTH AGENDA

Reforms effect: 2017=2.5%, Q1 2018=3.1%

2014 2017

More reforms enacted in 4 years than in previous 23

Key 2017-2018 reforms adopted Judicial (including Law on Anti-Corruption Court) Health Education Pensions (IMF compliant) Privatization/SOE reform (Public Admin Reform) Law on Concessions Law on Inland Waterways EU vector Visa-free regime with 122 countries (including Schengen zone) 40.5% share of merchandise exports to the EU in 2017 (+30% increase comparing to 2016)

adopted underway

Economic Growth

UkraineInvest

Strategy 2020

• III. STABILIZATION &

TRANSFORMATION -

Institutions-building Macro-economic stabilization w/IMF $25 billion of support Decentralization Banking sector reforms

• > 90 out of 180 “pocket” banks closed

Anti-corruption court law passed !

• De-regulation
• Transparency

EU-UA Association Agreement – DCFTA The Canada-Ukraine free-trade agreement

Ukraine Launched Many Structural Reforms Ahead of its Peers

UkraineInvest

Implemented In progress Not started Implemented in other countries Slovak Rep. Slovak Rep. Poland Public procurement e-system Public sector Judicial reform Start of reforms +1 year +2 years +3 years +4 years +5 years Ukraine Poland Georgia Ukraine New police Colombia Singapore Georgia Poland Georgia Slovak Rep. Poland Colombia Anti-Corruption Ukraine Georgia Ukraine Colombia Singapore >5 years GeorgiaUkraine Deregulation Econom y Energy reform Energy Colombia Poland Ukraine Georgia Slovak Rep. Slovak Rep. Singapore

Significant Leap Ahead in Key Rankings

UkraineInvest 24% 25% 26% 32% Kenya Nigeria Romania Ukraine

Ukraine tops EMEA* list for potential investment

Fund managers are eyeing Ukraine for deals for the next 12 months, Institutional Investors’ survey 2017 says

*EMEA – Europe, Middle East, Africa

Reforms passed by Ukraine in recent years enabled significant rise in Doing Business ranking

Ukraine vs peers in Doing Business ranking

152 76 126 125 113 117

132 100

2012 2013 2014 2015 2016 2017 2018 Ukraine Brazil Argentina India

In 2017 FDI flow reached $1.63 billion, which is 20% higher than in 2016, showing structural restoration of investment activity:

FDI, bn $

Crisis Economic growth

1.6

• 13.0

2.0

• 4,6

2017 1.4 2016 2015 2014 2013 Including (FDI for 2017):

Food processing (↑$255 mln) Mining (↑$240 mln) Metallurgy (↑$85 mln) Energy (↑$220 mln) Telecommunication (↑$90 mln) Finance (↑$300 mln)

Source: State Statistic Services of Ukraine

FDI Flow for 2013-2017

UkraineInvest

INVESTMENT OPPORTUNITIES IN UKRAINE

BRAINS & GRAINS INNOVATION & OPPORTUNITY

BLOCKCHAIN According to Blockchain Research Institute, Ukraine is among leaders in blockchain innovation By 2021 global market will rise tenfold to $2.3 b ENGINEERING AND R&D CENTERS (ER&D) By 2020 European R&D market will rise by 25% to $26.5 B ROBOTIC PROCESS AUTOMATION (RPA) By 2025 global market will rise 80 times to $80 B

ПРОМИСЛОВІСТЬ 2.0 – 3.0 ТЕХНОЛОГІЇ 4.0

MANUFACTURING CREATIVE INDUSTRIES

• INFOTAINMENT
• ROBOTIC

PROCESS AUTOMATION

• AVIONICS
• WEB AND MOBILE

SOLUTIONS

• 2D/3D MODELING
• AUTOMOTIVE

INDUSTRY

• AGRI-FOOD
• DIGITAL

ELECTRONICS

• MEDIA
• FASHION

INDUSTRY

4.0

Opportunities

UkraineInvest

CREATIVE INDUSTRIES

INFORMATION TECHNOLOGIES MEDIA FASHION INDUSTRY

• Ukrainian IT outsourcing market has grown by nearly 30 times over the

last decade, from $110 M in 2003 to about $3.6 B in 2017

• 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)
• > UAH 1 B of government support for film industry in 2018
• strong media content editing center
• global brands (Apple, Diesel, Lacoste, etc.) shoot commercials in Ukraine
• >15 global fashion brands have production facilities in Ukraine
• > 220 thousand of employees
• 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

• > 20 foreign companies
• > € 500 M of investment
• ~ 60 thousand of employees

AUTOMOTIVE INDUSTRY CLUSTER HOUSEHOLD APPLIANCES AND ELECTRONICS AGRI-FOOD

• large agricultural raw materials base (1/3 of Europe’s arable land)
• average production growth of >21% during 2014-2017 ($17 B in 2017)
• 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

Industrial Opportunities (notes to previous slide)

UkraineInvest

AGRIFOOD MANUFACTURING

• efficient production platform in Europe
• production volume in 2017 – $ 0.6 B
• DCFTA and Association agreement with EU
• 16 FTAs with 45 countries

Automotive Industry of Ukraine

Strong existing manufacturing base Human capital IT solutions

• infotainment
• robotic process

automation

Prerequisites for Automotive Industry Development in Ukraine

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

Marriage of Automotive and IT

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

About UkraineInvest

UkraineInvest