EBA: Infrastructure development should be the focus of the post-war reconstruction of the Odesa Region

Russian attacks on the infrastructure of the Odesa region only increased the logistical and infrastructural challenges for the south of Ukraine.

As last year, for most of the companies of the Southern Ukrainian office of the European Business Association, the restoration of destroyed objects and the development of the region’s infrastructural potential is the first condition for revitalizing business.

The post-war reconstruction of the region, according to business, should also first focus on the restoration of infrastructure, transport hubs and connections. Among other requested reforms are the improvement of the work of the judicial and law enforcement system, as well as digitalization of interaction with state authorities, which can help in the context of the fight against corruption. After all, it is corruption, together with unpredictable actions of the state that affect the work of business, that entrepreneurs call one of the main negative factors of influence, together with the outflow of personnel abroad and the logistical challenges mentioned above.

In general, the integrated assessment of business conditions in the region this year amounted to 2.47 points on a 5-point scale, and is higher than last year’s (2.15 points). Currently, 53% of entrepreneurs say that it is difficult for them to do business, 41% say that it is satisfactory, and another 6% say that it is easy. Since the beginning of the full-scale invasion, 12% of entrepreneurs in the region have relocated their office or production within Ukraine, and 6% – abroad.

Almost half, namely 47% of the respondents work in full, the other 53% – with certain restrictions. Only 19% of companies suffered no losses as a result of the war. At the same time, 44% report a loss of up to $1 million during this time, 12% record losses in the range of $1-10 million, and 25% report losses of more than $10 million.

82% of companies in the Southern region have employees mobilized into the ranks of the Armed Forces, in particular, almost half – 47% – their number reaches 10-20% of the company’s conscripted employees, in 29% – up to 10%, and in 6% – 20 -30%

Regarding the work of local authorities in the Odesa Region, the work of the National Police and Regional Military Administration received the highest rating, and the work of the TCC SP (territorial recruitment and social support centers) in the region received the lowest rating.

12% of the entrepreneurs we surveyed believe that the war will end by the end of this year, 53% believe that the war will end in 2024, and 24% – within the next three years. Despite this, in the next six months, the companies plan to expand their business, enter new markets and increase the number of employees.

For reference:

The survey was conducted among member companies of the Southern Ukrainian office of the European Business Association from July 4 to 24, 2023. General news is available за посиланням.at the link.