The Republic of Moldova is not attractive to investors, and this is confirmed, among other things, by the 2026 Global Investment Risk and Resilience Index. The aforementioned ranking shows that, in just one year, the Republic of Moldova fell 19 places, from 82nd to 101st. This situation should give the authorities pause; otherwise, matters will continue to deteriorate. And in order to understand what needs to be done going forward, we must make a proper diagnosis and identify all the factors that make Moldova unattractive to investors.

First and foremost, investors are avoiding the Republic of Moldova because of regional geopolitical uncertainty. Unfortunately, the authorities have limited room for manoeuvre here and are essentially forced to wait until this situation is overcome. But beyond that, the ball is in the authorities’ court — they simply need to acknowledge certain important issues and act accordingly.

Thus, in addition to regional geopolitical uncertainty, investors are concerned about the unpredictable justice system in the Republic of Moldova. The judicial system remains vulnerable, which discourages foreign capital from making long-term commitments. Investors fear that they will be unable to defend their rights and that their investments will not receive adequate protection. The lack of an independent and trustworthy judiciary, the risk of raider attacks and abusive asset seizures, and corruption within state institutions are perceived by investors as major risk factors.

Investors are also particularly cautious about Moldova because of the small size of its domestic economy, which limits the profitability of some large-scale projects. High logistics costs, the relatively small population and low purchasing power in Moldova only add to this negative picture.

It should also be noted that labour shortages and cumbersome procedures, caused by a high level of bureaucracy, are preventing existing businesses from expanding and discouraging new ones from entering the market. Investors also take into account the large-scale migration of the working-age population abroad, which puts additional pressure on the labour market.

However, this situation should not discourage the authorities — on the contrary, it should prompt them to act more decisively to improve it. To attract more investment, the Republic of Moldova needs to continue structural reforms focused on legislative predictability, reducing bureaucracy and developing infrastructure. Going forward, the emphasis should therefore be placed on ensuring a genuine rule of law; guaranteeing the protection of private property and respect for contracts; and reducing political influence over institutions with supervisory and regulatory functions.

When it comes to fiscal and regulatory predictability, the following measures are needed: maintaining or introducing clear incentives; avoiding sudden changes to tax legislation; simplifying reporting procedures for entrepreneurs; and so on.

It is also important to bear in mind that infrastructure and connectivity play a significant role for investors. This requires continued efforts to modernize roads, bridges and railways, as well as improve logistical connections with the European Union.

To ease the situation in the labour market, which investors monitor closely, measures are needed such as aligning vocational education with labour-market requirements; supporting professional retraining programmes; reducing the exodus of skilled workers by ensuring competitive wages; launching special government programmes to encourage citizens living in the diaspora to return home; and further liberalizing the labour market.

Only if decisive action is taken in these areas will the Republic of Moldova be able to become attractive to investors. Otherwise, the situation will continue to worsen, and year after year we will find ourselves losing important positions in international investment rankings.

Victor Slivinschi, businessman and investor