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Making companies in the Eastern Partnership more competitive through digital transformation

Digital Transformation of SMEs in the EaP (DT4SME)

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  • Commissioning Party

    German Federal Ministry for Economic Cooperation and Development (BMZ)

  • Country

    Regional Cooperation in the European Partnership: Armenia, Azerbaijan, Georgia, Moldova, Ukraine

  • Lead executing agency

    More

  • Overall term

    2023 to 2026

  • Products and expertise

    Economic Development and Employment

Context

The economies of the Eastern Partnership countries are under pressure. The start of the Russian invasion of Ukraine has thrown them into additional turmoil. All countries must drive forward their economic diversification and regional networking.

Sustainable economic development in the Eastern Partnership requires competitive small and medium-sized enterprises (SMEs). They are a prerequisite for successful integration into the single market of the European Union (EU). The digital transformation offers SMEs key opportunities to enable this. However, the potential is not yet being fully utilised.

In the Eastern Partnership countries, digitalisation is the responsibility of various ministries and authorities. However, more needs to be done to create feasible policy objectives and more favourable framework conditions for the digital transformation of SMEs. For example, this requires regional co-operation and knowledge exchange on the subject.

Objective

SMEs in the Eastern Partnership are more competitive and more connected thanks to the digital transformation.

Approach

The project works together with the Ministries of Economy of Armenia, Azerbaijan, Georgia, Moldova and the Ministry of Digital Transformation of Ukraine. These are in charge of policy development for the digital transformation of SMEs in the respective countries.

The project:

  • Improves the governmental and statistical conditions for the digital transformation of SMEs. To do so, it initiates regional exchange processes and study trips.
  • supports cooperation between players in the digital and entrepreneurial ecosystems to offer services for the digital transformation of SMEs. To achieve this, it primarily promotes digital innovation centres, known as digital innovation hubs.
  • develops entrepreneurial skills through training and needs analyses. The aim is to implement digital solutions for business and production processes in companies.

Last update: May 2024