IFC, a member of the World Bank Group, Armenia’s Ministry of Economy, and the Armenia Development Foundation agreed to work together to improve the country’s investment policy and inspections system in order to generate investment and cut business costs, spurring private sector growth and job creation.

The IFC Armenia Investment Climate Reform Project will provide advice to the ministry and the Armenia Development Foundation, enhancing the country’s business environment and making business inspections more predictable and efficient.

“Armenia has achieved notable results in recent years in terms of implementing reforms to improve the investment climate,” said Karen Chshmarityan, the Minister of Economy of Armenia. “However, there is more to be done and we appreciate IFC’s support in sharing advice and practices that have helped many countries simplify business regulations and create policies conducive to investment.”

The joint effort aims to develop a reform action plan that will attract and retain investment in Armenia, promote exports in the agriculture sector, ensure certainty to foreign investors, and ease procedures for taxpaying for agribusinesses. A reformed inspections system will mean reduced inspections for less riskier businesses, saving them time and resources.

“Our cooperation in this project aims to create more transparent and business-friendly regulations while ensuring public interests are protected,” said Jan van Bilsen, IFC’s newly appointed Regional Manager for the South Caucasus. “The work is part of the World Bank Group’s broader effort to help Armenia create a more competitive investment climate, spurring economic and social development.”

The IFC Armenia Investment Climate Reform Project is implemented by the World Bank Group Trade and Competitiveness Global Practice, in partnership with Austria’s Federal Ministry of Finance and Hungarian Partnership Funding/Hungary EXIM Bank. The project is built on IFC’s previous Investment Climate Reform Project (2011 to 2014), which helped the government of Armenia design and adopt reforms in taxes, trade logistics, inspections, and food safety.

Armenia became an IFC member in 1995. IFC has since invested more than $320 million in 52 projects across a range of sectors, including financial markets, manufacturing, and mining, and mobilized nearly $23 million from other lenders. IFC Advisory Services provides advice through projects focusing on the financial sector, sustainable energy, regulatory simplification, and food safety.