Key Takeaways
- Project Launch: The World Council of Credit Unions (WOCCU) has launched the GROW Project, a four-year initiative to strengthen credit unions in Ukraine. USAID has invested $10 million in it.
- Project Goals: The GROW Project aims to expand entrepreneurs’ and small businesses’ access to finance, increase credit union liquidity, and improve credit unions’ operating environment and technical capacity.
- Target Groups: The initiative focuses on supporting micro, medium, and small enterprises (MSMEs), cooperatives, farms, and individuals in rural areas, with special attention to women and vulnerable populations.
- Partnerships and Regulation: WOCCU will collaborate with United Credit Unions in Ukraine to develop processes and adapt to regulatory changes aligning with EU standards.
- Continuation and Expansion: The GROW Project builds on the work of the CAP Project, which enabled credit unions to finance legal entities in Ukraine for the first time.
The World Council of Credit Unions (WOCCU) has announced the launch of the GROW Project, a new initiative aimed at strengthening credit unions in Ukraine and expanding business lending opportunities. Funded by the U.S. Agency for International Development (USAID), the four-year, $10 million project will run from 2024 to 2028, focusing on enhancing the capacity and reach of Ukrainian credit unions.
Goals of the GROW Project
The GROW Project is designed to expand access to finance through credit unions for individuals seeking to start businesses and for existing legal entities looking to expand operations. The project will specifically target entrepreneurs, micro, medium, and small enterprises (MSMEs), cooperatives, farms, and other individuals in rural areas of Ukraine.
To achieve these goals, the GROW Project will:
- Increase Credit Union Liquidity: Enhance the availability of business financing through credit unions.
- Improve Operating Environment: Strengthen the regulatory and operational framework for credit unions.
- Enhance Technical Capacity: Build credit unions’ ability to provide and promote financial services.
- Support Vulnerable Populations: Address challenges faced by women and vulnerable groups in accessing business financing.
Angelina Tracy, WOCCU Vice President of Strategic Growth and Partnerships, remarked, “It is a remarkable feeling to know that much of the great work our CAP Project team did to ensure credit unions can provide lending to businesses can now be further implemented through GROW. We look forward to working with our partner credit unions to ensure they can increase liquidity and grow their business loan portfolios to better support their local communities.”
Collaboration with United Credit Unions
WOCCU will collaborate closely with United Credit Unions in Ukraine, including the Ukrainian United Credit Union and the United Credit Union of the Ukrainian National Association of Savings and Credit Unions. Together, they will develop processes, products, and partnerships that maximize the reach of credit unions, positively impacting local communities and economies.
As Ukraine’s credit union regulatory environment shifts to align with European Union (EU) standards, WOCCU will assist credit unions in adapting to new and upcoming prudential regulations.
Building on Previous Success
The GROW Project continues the work initiated by the WOCCU/USAID Credit for Agriculture Producers (CAP) Project, which closes in September 2024. The CAP Project, along with WOCCU’s International Advocacy team, played a crucial role in advocating for a 2024 law that enabled Ukrainian credit unions to provide financing to legal entities for the first time in the country’s history.
Raising Awareness and Improving Financial Literacy
In addition to expanding access to finance, the GROW Project seeks to raise public awareness about the benefits credit unions offer. It will implement activities to improve financial literacy for both new and existing credit union members as the sector broadens its reach.
