70% of CEOs of EBA Member Companies Support Land Market Opening

70% of the surveyed CEOs of member companies of the European Business Association support the opening of the land market and its sale to foreigners, 30% of the respondents are against.

This is evidenced by the results of the Investment Attractiveness Index of Ukraine for the second half of 2019, which is measured by the “European Business Association”.

“Today, the land issue in Ukraine is quite regulated and politicized. Therefore, first of all, it is important in the matter of land reform to talk about the need to create transparent procedures and reduce the level of bureaucratic processes. Obviously, a transparent land market is needed to improve the investment attractiveness of Ukraine. Indeed, it is transparency and predictability of the regulatory field that is very important for foreign investors,” the report says.

According to the results of the Investindex, only 17% of investors consider the investment climate attractive. And among the positive achievements, 9 components are noted. It is about the start of land market reform, stabilization of the political situation, stable national currency, reform of the Tax and Customs services, launch of the concession mechanism, the launch of the Supreme Anti-Corruption Court, reduction of inflation, cancellation of limits on the repatriation of dividends, growth of purchasing power of citizens.

“So, the agricultural market in Ukraine is an attractive investment area. However, it is important to have a comprehensive strategy on how to use this resource as efficiently as possible to maximize return for the country,” the EBA notes.

At the same time, for further development, experts say, it is important to ensure the implementation of basic changes in the country as the basis for normal development. And the survey results once again confirmed the position.

So, 37% consider the investment climate rather unfavorable, and among the reasons we are talking about a high level of corruption, a weak judiciary, an outflow of labor, talents and capital. In addition, according to the report, this is a slow de-bureaucratization of business processes, the situation around the National Bank and pressure from law enforcement agencies, the potential disruption of cooperation with the IMF, the turbo regime of the new government and populism.

Recall that 40% of top managers in Ukraine expect an improvement in the business climate over the next six months, while 53% are hesitant whether Ukraine will be a profitable market for new investors to enter.