Market Analysis

Fostering the Financial Inclusion of Forcibly Displaced Persons from Ukraine in Moldova

December 2, 2024

Summary

With the commencement of the Russian invasion of Ukraine in February 2022, Europe underwent its most significant forced displacement crisis in decades. 11.2 million Ukrainians, a quarter of the country’s population, were compelled to abandon their homes, including 6.2 million who had to search for refuge in safer areas outside of Ukraine. Due to its proximity to Ukraine, Moldova emerged as a notable destination for a considerable number of displaced individuals.

Since 24 February 2022, 871,279 Forcibly Displaced Persons (FDPs) have entered the Republic of Moldova. At the time of the writing (May 2023) 100,905 Ukrainian FDPs are present in the country. Among this group, 74 percent are adults and 83 percent are women, primarily mothers with children as well as pensioners. These groups are particularly vulnerable during armed conflicts. The majority of these FDPs arrived from bordering regions: Odesa and Mykolaiv (57 percent). The primary catalyst that led to their influx was the close proximity to the Ukrainian border, which facilitated regular back-and-forth crossings for many individuals. This refugee influx has heavily impacted Moldova which normally sustains a population of only 2.6 million inhabitants. This has resulted in one of the highest concentration of refugees per capita (4 percent of the population) compared to other EU and EU-neighboring countries.

The FDP population in Moldova is notably heterogeneous. This observation has been derived from quantitative data analysis, which identified four distinct segments. These segments vary in terms of age, household type, employment, income level, and reasons for staying in Moldova. They also exhibit a diverse range of evolving needs, including various financial requirements primarily dependent on their access to the labor market, i.e. employment in the host country. Non-financial needs are similar across all segments.


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