Digital infrastructure and services are now playing a dual role – they are both a potential target for local and cross-border investments and a key enabler, which creates a significant added potential for a number of traditional sectors

On September 23, Olga Magaletska, Head of the Office of the National Investment Council took part in the webinar "Ukraine's IT Sector: New Opportunities".

Svitlana Sergiychuk, General Partner at Nika Tech Family, Sergiy Tsyba, Counsel at Asters Law Firm, and Taras Humeniuk Associate at Asters Law Firm, also attended the event.

Participants of the webinar discussed the history of the IT market in Ukraine and future developments, the current IT market in Ukraine: volume, global market position, and key market players, as well as the legal framework for IT business in Ukraine.

Olga Magaletska noted that despite the challenges of the last years, Ukraine's exports of IT services in 2020 increased by 853 million US dollars, and for the first time exceeded 5 billion US dollars per year.

“One of the areas in which Ukraine has managed to simultaneously attract investors is digital infrastructure. Digitalization has become a defining direction in all areas of life and digital infrastructure has become a core element of critical infrastructure. Key attractive directions for potential FDI are: broadband infrastructure, 4G and 5G mobile networks, data services and digital health, digital education, and industrial IoT. In fact, digital infrastructure and digital services are now playing a dual role – they are both a potential target for local and cross-border investments and a key enabler, which creates a significant added potential for a number of traditional sectors by enhancing productivity, increasing efficiency and enriching the labor and education markets with a new set of advanced skills” – Head of the Office of the National Investment Council said.

Olga Magaletska also said that the Ukrainian IT sector has huge potential and to support its further development, the Ukrainian Ministry of Digital Transformation proposed a set of reforms so-called Diia City project.

“Diia City is designed to stimulate IT and the growth of investment in the innovation sector. This special regime takes into account all the points for a comfortable operation and development of business. After the full launch of the Diia City, the growth of the IT sector can double: from the current 20-30% per year to 40-50%. The industry's revenues will have the potential to grow in 2.5 times: from the current $ 6 billion to $ 16.5 billion. The share of the IT industry in the country's GDP structure may increase from 4% to 10%, which will form the basis for a more rapid transition to an innovative, digital economy”, - Olga Magaletska summed up.

© 2020 Office of the National Investment Council of Ukraine