Held between 27 October - 27 December 2023, the first session of the "InvestALIM" funding program made available to potential beneficiaries about €150 million for investment, where companies specialized in the food sector could apply for non-reimbursable support in carrying out the planned investments.
In September, AFRI published the updated list of eligible applicants, where, out of a total of 37 companies - eight are projects successfully managed by the REI team, with the total investment value exceeding the RON 1 billion threshold.
Moreover, out of the total of more than RON 1.2 billion of the investment projects of the eight REI portfolio companies, more than RON 750 million (€150 million) is the amount of state aid requested.
REI's clients are companies specializing in the food industry, in sectors such as bakery production, meat processing, milk or sugar processing.
The total amount of investments forecasted by 37 companies eligible for funding amounts to over RON 4 billion (over €800 million), while the amount of state aid requested amounts to over RON 2.3 billion (over €450 million).
Although the authorities initially announced this funding program with a total grant support of only €150 million per year - for three separate sessions, notifications have now been sent out to all winning companies for selection for funding, with grant agreements to be issued to them in 2025 and 2026.
“We also congratulate the Ministry of Agriculture for its initiative and openness to finance the processing industry in Romania, both through the InvestALIM program and for reallocating €500 million to DR-22, an axis also intended for the processing of agricultural products, sectors in which Romania has a negative balance in the trade balance”, Roxana Mircea, Managing Partner at REI Grup stated.
"InvestALIM" state aid scheme is aimed at regional development through the establishment or development of production capacities in the food industry, by granting state aid necessary to stimulate investments with major impact on the economy.
Eligible activities for which funding will be granted through the state aid scheme "InvestALIM" are:
- meat processing and preservation, poultry meat processing and preservation;âmanufacture of meat products (including poultry meat);
- processing and canning of fish, crustaceans and molluscs;
- potato processing and preservation;
- production of fruit and vegetable juices;
- fruit and vegetables processing and preserving;
- oil and fat manufacturing;
- dairy and cheese production;
- manufacture of bakery products, bread, cakes, biscuits and fresh pastry goods;
- sugar production.
REI Grup: Financing ranging from €50,000 to over €57 million in Q4 2024
Non-reimbursable funds totaling some €1.5 billion are available to companies by the end of this year, a REI Grup analysis reveals.
In the last quarter of this year, we have available funding axes making available to companies between €50,000 (Start-up Nation) and €57.75 million (HG 702 - State aid scheme for the manufacturing industry).
Start-up Nation provides grants of €50,000 to early-stage entrepreneurs. To successfully submit a project it is essential to enrol in entrepreneurship courses first and only then set up companies, while entrepreneurs who already own companies have 10 points taken.
For the maximum score, entrepreneurs must create two new jobs, apply for funds in areas where Romania is deficient - the trade balance must be negative, e.g. bakery production, cakes, pastries, fitness centers, sports clubs, photo-video activities, kindergartens, afterschool, restaurants, bars, catering, etc.
Young people aged 18-30 (pillar 1 - with an allocation of €300 million) and disadvantaged 30-35 or over 35 years old, returnees from the Diaspora (pillar 2 - with an allocation of around €150 million) are eligible to benefit from the courses.
Funds for renewable energy:
- Own-consumption (Modernisation fund) - The Ministry of Energy will reopen the session in October, with an allocation of around €300 million, for factories and other entities to install photovoltaic panels strictly related to their own consumption, in order to increase energy efficiency;
- The Ministry of Agriculture will reopen the second session for photovoltaic panels intended for agriculture and food industry in November. The budget allocated to the session amounts to €150 million;
- Electric-Up (2) is a program managed by the Ministry of Energy that provides grants of €150,000 to companies wishing to install up to 200 kW, recharging stations, storage batteries. The total allocation this session will amount to around €90 million.
- Supporting investment in the development of electricity storage capacity (batteries) - an allocation of €150 million - is another scheme already approved, aimed at photovoltaic parks that are already under construction and which will be able to have a maximum commissioning verbal process in Q2 2025.
RD 16 - "Investments in the vegetable and/or potato sector" - allocation of around €150 million, maximum 65% grant, i.e. €300,000 for vegetables - simple purchase and €700,000/potato or €2 million for projects with a construction component - storage, processing, etc;
RD 23 - "Investments for the processing and marketing of agricultural products with a view to obtaining food products” other than those referred to in Annex 1 of the Treaty on the Functioning of the European Union - allocation of about 150 million euro, maximum 65% grant, maximum 10 million euro grant in case of building factories from scratch in the bakery sector and 3 million euro in case of expansion or diversification of activity;
"Activities in CAEN classes 1071, 1072, 1073, energy efficiency, adoption of digital solutions, projects proposed by cooperatives or producer groups are additionally scored. For RD 16 and RD 23 the sessions are expected to open in November-December, which is why we invite potential clients to start the process of selecting consultancy and design, technological, services that REI can successfully offer, with the contractual guarantee of projects implemented without financial corrections", Roxana Mircea added.
